[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 477 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 477

 To amend the Internal Revenue Code of 1986 to disallow deductions and 
credits for companies who discriminate against Canadian pharmacies that 
     pass along discounts to consumers living in the United States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 27, 2003

 Mr. Feingold (for himself, Mr. Leahy, and Mr. Dayton) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to disallow deductions and 
credits for companies who discriminate against Canadian pharmacies that 
     pass along discounts to consumers living in the United States.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preserving Prescription Drug 
Discounts Act''.

SEC. 2. DISALLOWANCE OF CERTAIN TAX DEDUCTIONS AND CREDITS FOR 
              TAXPAYERS WHO DISCRIMINATE AGAINST CERTAIN PHARMACIES 
              SELLING DISCOUNT PRESCRIPTIONS DRUGS TO CONSUMERS LIVING 
              IN THE UNITED STATES.

    (a) In General.--Part IX of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items not deductible) is 
amended by adding at the end the following:

``SEC. 280I. DISALLOWANCE OF DEDUCTIONS AND CREDITS FOR TAXPAYERS WHO 
              DISCRIMINATE AGAINST CERTAIN PHARMACIES.

    ``(a) In General.--No deduction or credit shall be allowed for any 
expenditure relating to research and development during the taxable 
year for any taxpayer who discriminates against a qualified pharmacy in 
the sale of prescription drugs.
    ``(b) Qualified Pharmacy.--For purposes of this section, the term 
`qualified pharmacy' means any pharmacy located in Canada which sells 
prescription drugs to consumers living in the United States.
    ``(c) Discrimination.--For purposes of this section, the term 
`discriminate' means to publicly, privately, or otherwise refuse to do 
business with a person on the basis that the person will pass along 
discounts offered to the person to consumers living in the United 
States.''.
    (b) Conforming amendment.--The table of sections for such part IX 
is amended by adding at the end the following:

        ``Sec. 280I. Disallowance of deductions and credits for 
                            taxpayers who discriminate against certain 
                            pharmacies.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
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