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.

Product | 2× “2+10” configuration, rated 36,000 puffs — VOZOL launches NEON PLUG MAX
Product | 2× “2+10” configuration, rated 36,000 puffs — VOZOL launches NEON PLUG MAX
VOZOL has listed a new product, NEON PLUG MAX, on its official website, featuring dual 2 ml prefilled pods and dual 10 ml refill bottles (24 ml total), a claimed maximum of 36,000 puffs, and two-flavour switching. The device was previously shown at InterTabac 2025 and was listed by the UK MHRA in March 2025; however, as of publication it was not yet available on overseas retail sites.
Oct.22 by 2FIRSTS.ai
Coral Springs, Florida Moves to Extend Ban on New Vape Shops as Number of Existing Stores Reaches 23
Coral Springs, Florida Moves to Extend Ban on New Vape Shops as Number of Existing Stores Reaches 23
Coral Springs, Florida is considering extending its six-month moratorium on new smoke and vape shops as it works to finalize zoning rules and regulatory measures in response to a rapid increase in such retailers in recent years. The city is already home to 23 smoke and vape shops.
Dec.01 by 2FIRSTS.ai
Exclusive Interview | What’s Changing in Cigars? A Data Firm’s Perspective on the Industry’s Turning Point
Exclusive Interview | What’s Changing in Cigars? A Data Firm’s Perspective on the Industry’s Turning Point
As regulations tighten, consumer habits evolve, and new nicotine products reshape the market, the cigar industry is undergoing a quiet but profound transformation. In this exclusive interview, 2Firsts speaks with Cigar Sense — a data-driven sensory analysis firm — to explore what’s really changing in cigars, and what it means for manufacturers, retailers, and smokers around the world.
Nov.10
Philip Morris Japan launches new IQOS SENTIA “Icy Red” flavor with icy menthol and red berry notes
Philip Morris Japan launches new IQOS SENTIA “Icy Red” flavor with icy menthol and red berry notes
Philip Morris Japan has announced the launch of a new SENTIA Icy Red tobacco stick for its IQOS ILUMA i and IQOS ILUMA heated tobacco devices, featuring an intense menthol profile with red fruit notes. The new product will roll out in stages from December across physical IQOS outlets, online channels and tobacco retailers nationwide in Japan, priced at 530 yen (approx. USD 3.4) per pack.
Dec.01 by 2FIRSTS.ai
AG Miyares Argues Vape Ban Consistent with Federal Law, Seeks Dismissal
AG Miyares Argues Vape Ban Consistent with Federal Law, Seeks Dismissal
Virginia Attorney General Jason Miyares and Tax Commissioner James J. Alex have asked a federal court to dismiss a lawsuit challenging the state’s ban on flavored e-cigarettes. They argue plaintiffs lack standing because the products are already illegal under federal law. The state denies claims of federal preemption and asserts sovereign immunity, maintaining that its ban aligns with its authority to protect public health.
Nov.24 by 2FIRSTS.ai
Smoore’s Q3 Revenue Hits Record High, Reflecting Structural Growth in Global HNB and E-Vapor Markets
Smoore’s Q3 Revenue Hits Record High, Reflecting Structural Growth in Global HNB and E-Vapor Markets
Smoore posted record-high Q3 2025 revenue, driven by growth in both HNB and e-vapor segments, reflecting ongoing expansion of the global next-generation tobacco industry amid compliance and structural upgrades.
Oct.12