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.

China Tobacco Annual Meeting Flags “New Growth Drivers” for 2026: Cigarette Innovation, Domestic Cigars, Overseas Business and Multi-Purpose Use
China Tobacco Annual Meeting Flags “New Growth Drivers” for 2026: Cigarette Innovation, Domestic Cigars, Overseas Business and Multi-Purpose Use
China’s tobacco authorities used their annual industry meeting in Beijing to outline new growth drivers for 2026, highlighting cigarette innovation, domestic cigars, overseas business expansion and multi-purpose tobacco applications.
Jan.20
2Firsts Outlines 2026 Global Product Trends in the New Tobacco Industry
2Firsts Outlines 2026 Global Product Trends in the New Tobacco Industry
As regulation tightens and innovation matures, competition in the new tobacco industry is shifting. In its 2026 Global Product Trends in the New Tobacco Industry report, 2Firsts examines how heated tobacco, nicotine pouches, and vape products are moving beyond feature-driven upgrades toward system-level design, where experience management, compliance structure, and engineering capability increasingly shape long-term competition.
Jan.13 by 2Firsts Perspectives
Mexico’s Congress Prepares Total Ban on Vapes and E-Cigarettes
Mexico’s Congress Prepares Total Ban on Vapes and E-Cigarettes
Mexico’s Chamber of Deputies is preparing to vote on several major bills before the end of the legislative session, including a full ban on vapes and e-cigarettes. The proposed reform to the General Health Law would prohibit the manufacturing, sale, import, and export of these products, imposing penalties of up to eight years in prison and fines exceeding 200,000 pesos (approximately USD 11,000). L
Dec.09 by 2FIRSTS.ai
Councils Remove 1.2 Million Illicit Vapes from UK High Streets
Councils Remove 1.2 Million Illicit Vapes from UK High Streets
UK council data shows that two illegal vapes were seized every minute in 2025, with a total of 1.2 million illicit vapes removed from high streets. Over the past year, authorities also seized millions of illegal cigarettes and other nicotine products. Consumer surveys indicate that more than half of UK vapers believe they have unknowingly purchased illegal vaping products.
Dec.23 by 2FIRSTS.ai
Vape Company Takes FDA to Court for Stalling Premarket Decision for Half a Decade
Vape Company Takes FDA to Court for Stalling Premarket Decision for Half a Decade
California-based vape manufacturer Schwartz E-Liquid (USA Vape Lab) has sued the U.S. Food and Drug Administration (FDA) in federal court, alleging the agency unlawfully failed to issue a decision on its premarket application for flavored e-cigarette products for more than five years. The company is seeking a court order compelling the FDA to act within 90 days.
Nov.26 by 2FIRSTS.ai
2Firsts Breaking | FDA to Hold PMTA Roundtable for Small ENDS Manufacturers, Spotlighting Small Business Applications
2Firsts Breaking | FDA to Hold PMTA Roundtable for Small ENDS Manufacturers, Spotlighting Small Business Applications
The FDA’s Center for Tobacco Products (CTP) will hold a PMTA roundtable on February 10, 2026, for small electronic nicotine delivery systems (ENDS) manufacturers, seeking input on PMTA submission experiences and recommendations for streamlining and improving the review process.
Dec.24