Closing the E-cigarette Advertising Tax Loophole

Mar.16.2023
Closing the E-cigarette Advertising Tax Loophole
US lawmakers seek to end tax deductions for e-cigarette ads amid ban on traditional tobacco advertising since 1971.

Since January 1971, traditional tobacco advertising has been banned in the United States. However, this does not apply to electronic cigarettes.


Currently, US law allows manufacturers to apply for federal tax breaks on advertising costs for e-cigarettes. Congress hopes to close this tax loophole.


Senators Jeanne Shaheen and Richard Blumenthal have reintroduced the "E-cigarette and Tobacco Advertising Tax Subsidies Repeal Act" (S.464). If passed, this legislation would not make e-cigarette advertising illegal, but it would terminate tax deductions for e-cigarette advertising expenses.


Shahin and Blumenthal first introduced the bill in 2019, but so far it has not received enough support in Congress to be approved.


Reference:


1. Congress aims to close a loophole in advertising regulations for e-cigarettes.


Congress is currently considering the possibility of discontinuing the tax deduction that e-cigarette advertisements on the radio currently enjoy.


Further reading:


The US Senate reintroduces bill on tax-free subsidies for electronic cigarette and tobacco advertisements.


The US Congress will close a "loophole" in tobacco advertising.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Product | JTI Expands Ploom Ecosystem as LYO Tobacco-Free Nicotine Sticks Roll Out Across Europe
Product | JTI Expands Ploom Ecosystem as LYO Tobacco-Free Nicotine Sticks Roll Out Across Europe
Japan Tobacco International (JTI) is expanding its Ploom heated product ecosystem with LYO tobacco-free nicotine sticks. Designed specifically for Ploom devices, LYO contains nicotine but no tobacco. Public information shows that the product has gradually entered several European markets, including Spain, Portugal and Germany, and was officially introduced in Romania in July 2026. The launch highlights JTI’s efforts to explore broader nicotine consumable formats beyond traditional tobacco-based sticks.
JTI
Jul.21 by 2Firsts Perspectives
FDA Tobacco Proposal Signals Full-Chain Compliance Test for Global E-Cigarette Supply Chains
FDA Tobacco Proposal Signals Full-Chain Compliance Test for Global E-Cigarette Supply Chains
FDA’s proposed foreign tobacco establishment registration and product listing rule remains unfinished, but Accorto told 2Firsts it reflects a shift toward structured oversight similar to medical device and pharmaceutical compliance frameworks. For Chinese and global e-cigarette suppliers, U.S. market access is moving beyond product authorization toward full-chain compliance covering manufacturing, documentation, import control, distribution, retail and marketing discipline.
Special Report
Jul.09
Innovation, Insights and Networking: NUBIZ Brings the Global NGP Industry Together in Dortmund
Innovation, Insights and Networking: NUBIZ Brings the Global NGP Industry Together in Dortmund
The market for next-generation products is expanding rapidly, with vapes, e-cigarettes, pouches, snus and heat-not-burn products among the industry’s most innovative segments. As part of InterTabac, NUBIZ provides a central platform for reduced-risk tobacco and nicotine products, bringing together global leaders and newcomers from 15 to 17 September. The show combines market insights, product comparisons, networking, a high-level conference programme and exclusive side events.
Jun.03
Opinion | As EU Reviews Tobacco Rules, Experts Warn Against Overlooking Smokers’ Alternatives
Opinion | As EU Reviews Tobacco Rules, Experts Warn Against Overlooking Smokers’ Alternatives
As the European Commission reviews its tobacco and advertising rules, two experts who provided written comments to 2Firsts argue that future EU policy should not overlook adult smokers’ alternatives. Dr Garrett McGovern and Dr Carmen Escrig say regulators should weigh relative risk, adult switching, flavours, consumer behaviour and scientific uncertainty alongside youth protection.
Industry Insight
Jun.01
2Firsts Data | China’s Vape Exports Rise 3.1% in H1 2026 as 6-Methyl Nicotine-Related Products Surge 65.2%
2Firsts Data | China’s Vape Exports Rise 3.1% in H1 2026 as 6-Methyl Nicotine-Related Products Surge 65.2%
China’s vape exports showed resilience in the first half of 2026 after a short-term shock from China’s export rebate adjustment. But customs data points to more than a simple recovery: the structure of growth is changing. Vaping devices and atomization hardware emerged as the strongest growth driver, while nicotine-containing vaping products remained broadly stable. Meanwhile, nicotine substitute-related products represented by 6-methyl nicotine expanded rapidly, becoming a new category to watch for both industry and regulators. After the U.S. market went through a cycle of shortages, replenishment and inventory rebuilding in 2025, China’s vape supply chain is entering a new phase of reallocation.
Special Report
Jul.20
2Firsts Data | China’s U.S. Vape Exports Have Yet to Regain Previous Growth Momentum in H1 2026, but Hardware Grew 15.2% and 6-Methyl Nicotine-Related Products Rose 234.7%
2Firsts Data | China’s U.S. Vape Exports Have Yet to Regain Previous Growth Momentum in H1 2026, but Hardware Grew 15.2% and 6-Methyl Nicotine-Related Products Rose 234.7%
China’s vape exports to the U.S. reached approximately $1.58 billion in the first half of 2026, remaining broadly stable from a year earlier but still below previous growth momentum. 2Firsts’ analysis of China Customs data shows that the U.S. market has not simply returned to its previous trajectory after the enforcement shock and inventory-driven swings of 2025. Instead, export momentum is shifting across product categories. Vaping devices and atomization hardware increased 15.2% year over year, while 6-methyl nicotine-related and other nicotine substitute products surged 234.7%. Meanwhile, traditional nicotine-containing vaping products continued to face pressure.
Jul.22