[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2842 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2842

 To amend the Internal Revenue Code of 1986 to deny the deduction for 
       direct to consumer advertising expenses for prescription 
   pharmaceuticals and to provide a deduction for fees paid for the 
   participation of children in certain organizations which promote 
                           physical activity.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 7, 2009

  Mr. Begich 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 deny the deduction for 
       direct to consumer advertising expenses for prescription 
   pharmaceuticals and to provide a deduction for fees paid for the 
   participation of children in certain organizations which promote 
                           physical activity.

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

SECTION 1. DISALLOWANCE OF DEDUCTION FOR DIRECT TO CONSUMER ADVERTISING 
              EXPENSES FOR PRESCRIPTION PHARMACEUTICALS.

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

``SEC. 280I. DISALLOWANCE OF DEDUCTION FOR DIRECT TO CONSUMER 
              ADVERTISING EXPENSES FOR PRESCRIPTION PHARMACEUTICALS.

    ``No deduction shall be allowed under this chapter for expenses 
relating to direct to consumer advertising in any media for the sale 
and use of prescription pharmaceuticals for any taxable year.''.
    (b) Conforming Amendment.--The table of sections for such part IX 
of the Internal Revenue Code of 1986 is amended by adding after the 
item relating to section 280H the following new item:

``Sec. 280I. Disallowance of deduction for direct to consumer 
                            advertising expenses for prescription 
                            pharmaceuticals.''.
    (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.

SEC. 2. PHYSICAL LIFESTYLES FOR AMERICA'S YOUTH (PLAY) DEDUCTION.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 224 
as section 225 and inserting after section 223 the following new 
section:

``SEC. 224. FEES FOR ORGANIZATIONS PROMOTING CHILDREN'S PHYSICAL 
              ACTIVITY.

    ``(a) General Rule.--There shall be allowed as a deduction under 
this chapter an amount equal to the lesser of--
            ``(1) the amount paid or incurred by the taxpayer during 
        the taxable year for the participation of a qualifying child 
        (as defined in section 152(c)) of the taxpayer in a qualified 
        organization, or
            ``(2) $500.
    ``(b) Limitations.--
            ``(1) In general.--No deduction shall be allowed under 
        subsection (a) with respect to any taxpayer whose adjusted 
        gross income for the taxable year exceeds $250,000.
            ``(2) Adjusted gross income.--For purposes of this 
        subsection, adjusted gross income shall be determined--
                    ``(A) without regard to this section and sections 
                199, 911, 931, and 933, and
                    ``(B) after the application of sections 86, 135, 
                137, 219, 221, 222, and 469.
    ``(c) Qualified Organization.--For purposes of this section, the 
term `qualified organization' means any other organization the 
principal activities of which are designed to promote or provide for 
the physical activity of children, as determined under guidelines 
published by the Secretary in consultation with the Secretary of Health 
and Human Services.''.
    (b) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by redesignating the 
item relating to section 224 as relating to section 225 and inserting 
after the item relating to section 223 the following new item:

``Sec. 224. Fees for organizations promoting children's physical 
                            activity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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