US Senators Propose Bill to End Tobacco Advertising Tax Subsidies

Feb.17.2023
US Senators Propose Bill to End Tobacco Advertising Tax Subsidies
Senators propose bill to end tax subsidies for e-cigarette and tobacco advertising to combat youth addiction.

On February 16th, Senators Jeanne Shaheen and Richard Blumenthal reintroduced the "No Tax Subsidies for E-Cigarette and Tobacco Ads Act" in Congress. The bill aims to crack down on e-cigarette companies and close a tax loophole that currently allows manufacturers to receive federal tax breaks on advertising expenses for e-cigarette and tobacco products.


In November 2022, federal data released by the US Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) revealed that over 3 million middle and high school students had used tobacco products in the past 30 days. The use of electronic cigarettes by teenagers has risen by 1800% from 2011 to 2019. More than 30% of teenagers who start using electronic cigarettes switch to traditional tobacco products within six months.


Currently, more than 25% of teenage e-cigarette users use their e-cigarettes every day. More than 85% of users prefer fruit flavors. Among students surveyed, 73.5% reported seeing e-cigarette content on social media.


Electronic cigarette and big tobacco companies must be held accountable for their advertising targeting young people. These dangerous products are fueling a public health crisis – especially among teenagers," said Shaheen. "Taxpayers should not foot the bill for these harmful marketing practices. That's why I am reintroducing this critical legislation, which would close a tax loophole that allows companies to write off their advertising costs and require responsibility from electronic cigarette companies.


The tax breaks for the tobacco and e-cigarette giants allowed the industry to profit from their manipulative marketing tactics. Our legislation has put an end to these loopholes, in order to protect children and other consumers from being lured into lifelong addiction," said Blumenthal. "I am proud to have worked alongside Senator Shaheen to prevent big tobacco companies from enticing the next generation.


According to federal law, television and radio advertisements for traditional tobacco products have been prohibited, and certain other forms of tobacco advertising are also restricted by the 1998 Tobacco Master Settlement Agreement. However, these restrictions do not apply to electronic cigarettes. While some television media have begun to pull electronic cigarette advertisements during broadcasts in response to the ongoing youth vaping crisis, other media are still airing these ads. To ensure equality between electronic cigarettes and traditional tobacco, the Shaheen and Blumenthal bill also prohibits tax breaks for advertising expenses related to cigarette rolling tobacco, cigars, snuff, chewing tobacco, pipe tobacco, and homemade cigarettes.


Senators Brown (D-OH), Reed (D-RI), Durbin (D-IL), and Merkley (D-OR) have also joined the ranks of sponsors for this reintroduced bill.


The full text of the legislation can be found here.



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.

From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
KT&G announced on Aug. 13, 2026, that it has opened “lil Archive,” a brand exhibition space in Seoul showcasing the evolution, technology platforms and future direction of its heated tobacco brand lil since its launch in 2017. KT&G said lil now spans three major platforms — lil SOLID, lil HYBRID and lil AIBLE — with more than 30 dedicated consumables, and held a 48% share of South Korea's heated tobacco market in the second quarter of 2026. The opening comes as lil enters its 10th year, with KT&G continuing to position the brand for expansion beyond its domestic market.
Aug.14
CCPIT Says Trade Friction Index for China-Related Electronics Sector Remains High, With Vape Products Among Areas of Focus
CCPIT Says Trade Friction Index for China-Related Electronics Sector Remains High, With Vape Products Among Areas of Focus
China Council for the Promotion of International Trade (CCPIT) held its July regular press conference on July 31, 2026, releasing the May 2026 Global Economic and Trade Friction Index. CCPIT spokesperson Yang Fan said the global trade friction index stood at 95 in May, remaining at a medium-to-high level. By industry, the electronics sector recorded the highest trade friction index among 13 monitored industries. In China-related trade frictions, the index stood at 93, with electronics products including drones, chips and vape products among areas where friction remained elevated.
Aug.03
Charlie’s Says 30 PACHA Vape SKUs Tentatively Identified for FDA’s Non-Priority Enforcement Public List
Charlie’s Says 30 PACHA Vape SKUs Tentatively Identified for FDA’s Non-Priority Enforcement Public List
Charlie’s Holdings said the U.S. Food and Drug Administration notified the company on June 23, 2026, that 30 PACHA vape SKUs with submitted PMTAs had been tentatively identified for inclusion on a planned public-facing FDA webpage. Under enforcement guidance issued by FDA in May, the webpage is intended to identify certain unauthorized products for which the agency generally does not intend to prioritize enforcement of premarket authorization requirements. Charlie’s disclosed the development alongside second-quarter revenue of $3.8 million, up 116% year over year.
Aug.25
EU ‘TPD3’ Enters Next Phase on Aug. 14 as Fragmented Vape and Nicotine Pouch Rules Push the Single Market Toward Regulatory Overhaul
EU ‘TPD3’ Enters Next Phase on Aug. 14 as Fragmented Vape and Nicotine Pouch Rules Push the Single Market Toward Regulatory Overhaul
A 12-week European Commission consultation on revising the Tobacco Products Directive and Tobacco Advertising Directive is due to close on Aug. 14, 2026. The Commission has identified e-cigarette flavours, disposable vapes, tobacco heating devices, nicotine pouches, nicotine-free e-cigarettes, packaging and digital marketing among areas for possible new EU rules. National regulations already vary significantly across the bloc, a fragmentation the Commission says creates internal-market barriers and distorts competition. No formal revised TPD/TAD legislative text has yet been published, with the Commission currently indicating December 2026 for the legislative initiative.
Aug.14
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
From Nicotine Pouches to Soft Candy Forms: China Tobacco Hubei explores adjustable-release oral nicotine products
China-based China Tobacco Hubei Industrial Co., Ltd. has filed a patent application covering an oral nicotine product and its preparation method. The patent proposes a soft candy-shaped oral nicotine product containing nicotine ingredients, gelling agents, sweeteners and alkaline pH regulators. Through formulation adjustments and homogeneous or dual-layer structures, the technology aims to achieve different nicotine release profiles. The filing reflects exploration of new oral nicotine product formats and controlled nicotine delivery approaches.
Aug.06
New York’s 75% Wholesale Tax on Nicotine Pouches Takes Effect Sept. 1, With Aug. 31 Inventory Subject to Floor Tax
New York’s 75% Wholesale Tax on Nicotine Pouches Takes Effect Sept. 1, With Aug. 31 Inventory Subject to Floor Tax
New York State will extend its tobacco products tax to “alternative nicotine products,” including tobacco-free nicotine pouches, from September 1, 2026, at a rate of 75% of the wholesale price. Distributors, wholesalers and retailers must also inventory products held as of 11:59 p.m. on August 31 and pay a floor tax. Vapor products are excluded from the new category and remain subject to New York's separate 20% supplemental sales tax on the retail price.
Aug.26