Alcohol Promotion and Advertising Tax Fairness Act

Alcohol Promotion and Advertising Tax Fairness Act - Amends the Internal Revenue Code to disallow a deduction for the expense of advertising (via any means) or promoting any alcoholic beverage.

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3478 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3478

To amend the Internal Revenue Code of 1986 to eliminate tax deductions 
     for advertising and goodwill expenditures relating to alcohol 
                               beverages.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 16, 1996

      Mr. Kennedy of Massachusetts (for himself, Mr. Hinchey, Mr. 
Faleomavaega, and Mr. Fattah) 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 eliminate tax deductions 
     for advertising and goodwill expenditures relating to alcohol 
                               beverages.

    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 ``The Alcohol Promotion and 
Advertising Tax Fairness Act''.

SEC. 2. DISALLOWANCE OF DEDUCTION FOR ADVERTISING AND GOODWILL EXPENSES 
              RELATING TO ALCOHOLIC BEVERAGES.

    (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:

``SEC. 280I. ADVERTISING AND GOODWILL EXPENDITURES RELATING TO 
              ALCOHOLIC BEVERAGES.

    ``(a) In General.--No deduction otherwise allowable under this 
chapter shall be allowed for any amount paid or incurred to advertise 
(by means of television, radio, other electronic means, newspaper or 
other periodical, billboard, or any other means), or promote goodwill 
regarding, any alcoholic beverage.
    ``(b) Alcoholic Beverage.--For purposes of this section, the term 
`alcoholic beverage' means any item which is subject to tax under 
subpart A, C, or D of part I of subchapter A of chapter 51 (relating to 
taxes on distilled spirits, wines, and beer).''
    (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 
the following new item:

                              ``Sec. 280I. Advertising and goodwill 
                                        expenditures relating to 
                                        alcoholic beverages.''
    (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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