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.


This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

Special Report|Reynolds’ 337 Patent Case Ends, but a Harsher 337 Compliance Battle Now Targets the Entire Vape Supply Chain
Special Report|Reynolds’ 337 Patent Case Ends, but a Harsher 337 Compliance Battle Now Targets the Entire Vape Supply Chain
The U.S. International Trade Commission (ITC) has terminated Investigation 337-TA-1410 after invalidating key vape patent claims asserted by R.J. Reynolds Vapor Company, removing the immediate risk of import bans for dozens of companies. However, a new case—337-TA-1486—has already opened a more consequential legal front, shifting the focus from patent disputes to regulatory compliance across the vape supply chain, including PACT Act reporting, tax compliance, and FDA marketing authorization.
BAT
Mar.11
Jeju Health Center to Apply Conventional Tobacco Rules to Liquid E-Cigarettes From April 24
Jeju Health Center to Apply Conventional Tobacco Rules to Liquid E-Cigarettes From April 24
Jeju Health Center said it will apply the same regulations used for conventional tobacco products to all tobacco products, including liquid e-cigarettes, from April 24, while also strengthening public guidance and smoke-free zone management.
Apr.21 by 2FIRSTS.ai
WSJ: White House Pushes for More Flavored Vape Approvals as FDA Commissioner Makary Blocks Move
WSJ: White House Pushes for More Flavored Vape Approvals as FDA Commissioner Makary Blocks Move
According to The Wall Street Journal, the White House is pushing to allow more flavored vape products onto the market for the first time in years, but FDA Commissioner Marty Makary opposes the move and has blocked the plan. The report said a memo from Makary’s office prevented authorization of several flavors from vape maker Glas, even after FDA scientific reviewers had supported them.
Apr.20 by 2FIRSTS.ai
Special Report | China’s New Five-Year Plan Highlights “Health-First” Strategy, Providing Policy Context for Tobacco Sector
Special Report | China’s New Five-Year Plan Highlights “Health-First” Strategy, Providing Policy Context for Tobacco Sector
China’s 2026 “Two Sessions” reviewed the draft Outline of the 15th Five-Year Plan, which proposes implementing a health-first development strategy and strengthening the effectiveness of the Patriotic Health Campaign. Although the document does not address specific industries, this public-health governance framework provides a new policy context for observing the future regulation, product strategies, and market development of China’s tobacco and next-generation nicotine sectors.
Industry Insight
Mar.08
Mexico’s Coahuila State Passes Vape Ban Covering Non-Nicotine Devices and Heated Tobacco Products
Mexico’s Coahuila State Passes Vape Ban Covering Non-Nicotine Devices and Heated Tobacco Products
The Congress of Coahuila in Mexico has approved a ban on the sale, use and promotion of vapes and similar devices, citing their harmful effects on health and the environment.
Mar.31 by 2FIRSTS.ai
Exclusive | Shenzhen Tobacco Authorities Ask Licensed Chinese Vape Manufacturers to Submit STN Details for U.S.-Bound Products
Exclusive | Shenzhen Tobacco Authorities Ask Licensed Chinese Vape Manufacturers to Submit STN Details for U.S.-Bound Products
Shenzhen tobacco authorities have asked licensed Chinese vape manufacturers to submit STN details for U.S.-bound products, including CTP Portal or STN email screenshots, highlighting a new compliance signal in cross-border oversight.
Apr.02