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.

Fourth Circuit weighs federal preemption challenge to North Carolina’s vape sales restrictions
Fourth Circuit weighs federal preemption challenge to North Carolina’s vape sales restrictions
Vape manufacturers and sellers urged the U.S. Court of Appeals for the Fourth Circuit to find that the federal Food, Drug, and Cosmetic Act (FDCA) preempts North Carolina’s new law restricting the sale of certain e-cigarette/ENDS products.
Feb.03 by 2FIRSTS.ai
Imperial Brands Forms Global AI Partnership with Capgemini, Reinforcing Artificial Intelligence as Core Infrastructure in the Nicotine Industry
Imperial Brands Forms Global AI Partnership with Capgemini, Reinforcing Artificial Intelligence as Core Infrastructure in the Nicotine Industry
Industry Insight
Feb.19
Product | 22ml Combined E-Liquid Supply, Rated for 35,000 Puffs: OXBAR Launches the OX35K Open-System Pod Device
Product | 22ml Combined E-Liquid Supply, Rated for 35,000 Puffs: OXBAR Launches the OX35K Open-System Pod Device
The vaping brand OXBAR has recently listed its open-system, refillable pod device OX35K on its official website. The product features a “2ml built-in pod + two 10ml external refill bottles” e-liquid supply structure and supports top refilling, with a claimed puff count of up to 35,000. It is equipped with a 1000mAh built-in battery and offers dual power modes—BOOST and ECO—positioning the device to balance high-puff performance with an open-system form factor.
Jan.13 by 2FIRSTS.ai
Kazakhstan Investigates Social-Media Vape Sales Linked to a Banking “Drop” Arrangement
Kazakhstan Investigates Social-Media Vape Sales Linked to a Banking “Drop” Arrangement
Kazakhstan’s Financial Monitoring Agency (AFM) in Ulytau Region is conducting a pre-trial investigation into alleged illegal vape sales and the unlawful acquisition of access to a bank account. Authorities say a Satpayev resident has sold banned devices via social media since 2024 and used a “dropper” arrangement to disguise proceeds.
Jan.27 by 2FIRSTS.ai
FDA Details Carcinogenicity Tiering and ELCR Framework as Small Manufacturers Press for Predictability
FDA Details Carcinogenicity Tiering and ELCR Framework as Small Manufacturers Press for Predictability
During the “Toxicological Profile” session at FDA’s Feb 10 PMTA roundtable, officials outlined the carcinogenicity tiering system and Excess Lifetime Cancer Risk (ELCR) framework used in ENDS reviews under the APPH standard. Small manufacturers questioned database transparency, exposure assumptions, and the existence of clear compliance benchmarks. FDA reiterated toxicological risk is assessed case by case within a broader population-level determination.
Feb.11
Ireland’s Tobacco and Vape Retail Licensing Regime Takes Effect; BAT Says It Should Cover Nicotine Pouches
Ireland’s Tobacco and Vape Retail Licensing Regime Takes Effect; BAT Says It Should Cover Nicotine Pouches
Ireland’s retail licensing system took effect on Feb. 2, 2026, charging annual fees per point of sale and enforced by the Health Service Executive (HSE). British American Tobacco’s local unit, BAT Ireland, said excluding nicotine pouches could leave a regulatory gap.
Feb.04 by 2FIRSTS.ai