I 111th CONGRESS 2d Session H. R. 4518 IN THE HOUSE OF REPRESENTATIVES January 26, 2010 Mr. Hall of New York introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to deny a deduction for image advertising expenses for any trade or business the gross receipts of which exceed $100 million.

1.

Denial of deduction for certain advertising

(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 new section:

280I.

Denial of deduction for certain advertising

(a)

In general

In the case of a person who is not a qualified small business, no deduction shall be allowed under this chapter for any amount paid or incurred for advertising anything other than a service or product. (b)

Qualified small business

For purposes of this section, the term qualified small business means any person engaged in a trade or business the gross receipts of which for the preceding taxable year did not exceed $100,000,000. (c)

Common control

All members of the same controlled group of corporations (within the meaning of section 52(a)) and all persons under common control (within the meaning of section 52(b)) shall be treated as 1 person for purposes of this section.

. (b)

Clerical Amendment

The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding at the end thereof the following new item: Sec. 280I. Denial of deduction for certain advertising expenses. . (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 in taxable years ending after such date.