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HB0484 • 2026

Corporate Income Tax - Addition Modification - Direct-to-Consumer Pharmaceutical Advertising

Corporate Income Tax - Addition Modification - Direct-to-Consumer Pharmaceutical Advertising

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Delegates Ziegler , Feldmark , Terrasa , Addison , Charkoudian , Cullison , Ebersole , Guzzone , Hill , Moreno , and Watson
Last action
2026-01-23
Official status
In the House - Hearing 2/12 at 1:00 p.m.
Effective date
2026-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Corporate Income Tax - Addition Modification - Direct-to-Consumer Pharmaceutical Advertising

Providing an addition modification under the corporate income tax for the amount of certain direct-to-consumer advertising expenses for certain covered drugs paid or incurred during the taxable year that are deducted under the Internal Revenue Code; and applying the Act to all taxable years beginning after December 31, 2025.

What This Bill Does

  • Providing an addition modification under the corporate income tax for the amount of certain direct-to-consumer advertising expenses for certain covered drugs paid or incurred during the taxable year that are deducted under the Internal Revenue Code; and applying the Act to all taxable years beginning after December 31, 2025.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-23 House

    First Reading Ways and Means

  2. 2026-01-23 House

    Hearing 2/12 at 1:00 p.m.

  3. Maryland General Assembly

    Text - First - Corporate Income Tax - Addition Modification - Direct-to-Consumer Pharmaceutical Advertising

Official Summary Text

Providing an addition modification under the corporate income tax for the amount of certain direct-to-consumer advertising expenses for certain covered drugs paid or incurred during the taxable year that are deducted under the Internal Revenue Code; and applying the Act to all taxable years beginning after December 31, 2025.

Current Bill Text

Read the full stored bill text 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0484*

HOUSE BILL 484
Q3, J1 6lr1054

By: Delegates Ziegler, Feldmark, Terrasa, Addison, Charkoudian, Cullison,
Ebersole, Guzzone, Hill, Moreno, and Watson
Introduced and read first time: January 23, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Corporate Income Tax – Addition Modification – Direct–to–Consumer 2
Pharmaceutical Advertising 3

FOR the purpose of providing an addition modification under the corporate income tax for 4
the amount of certain direct–to–consumer advertising expenses for certain covered 5
drugs paid or incurred during the taxable year that are deducted under the Internal 6
Revenue Code; and ge nerally relating to an addition modification for 7
direct–to–consumer advertising expenses. 8

BY repealing and reenacting, without amendments, 9
Article – Tax – General 10
Section 10–305(a) 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2025 Supplement) 13

BY adding to 14
Article – Tax – General 15
Section 10–305(e) 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2025 Supplement) 18

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20

Article – Tax – General 21

10–305. 22

2 HOUSE BILL 484

(a) To the extent excluded from federal taxable income, the amounts under this 1
section are added to the federal taxable income of a corporation to determine Maryland 2
modified income. 3

(E) (1) (I) IN THIS SUBSECTION TH E FOLLO WING WORDS HAVE THE 4
MEANINGS INDICATED. 5

(II) “COVERED DRUG” MEANS: 6

1. A PRESCRIPTION DRUG PRODUCT AS DEFINED I N § 7
735 OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT; OR 8

2. A DRUG COMPOUNDED IN ACCORDANCE WITH § 503A 9
OR § 503B OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT. 10

(III) “COVERED ENTITY” MEANS: 11

1. A SPONSOR OF A PRESC RIPTION DRUG PRODUCT AS 12
DEFINED IN § 735 OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT; OR 13

2. A PERSON THAT , EITHER DIRECTLY OR I NDIRECTLY 14
THROUGH A SUBSIDIARY, OWNS AN OUTSOURCING FACILITY AS DEFINED IN § 503B 15
OF THE FEDERAL FOOD, DRUG, AND COSMETIC ACT. 16

(IV) 1. “DIRECT–TO–CONSUMER ADVERTISING” MEANS ANY 17
DISSEMINATION, BY OR ON BEHALF OF A COVERED ENTITY, OF AN ADVERTISEMENT 18
THAT IS IN REGARD TO A CO VERED DRU G AND PRIMARILY TARGETED T O THE 19
GENERAL PUBLIC, INCLUDING THROUGH: 20

A. BROADCASTING THROUGH MEDIA SUCH AS RADIO , 21
TELEVISION, TELEPHONE COMMUNICAT ION SYSTEMS , DIRECT MAIL , AND 22
BILLBOARDS; AND 23

B. DISSEMINATION ON THE INTERNET OR THROUGH 24
DIGITAL PLAT FORMS, INCLUDING SOCIAL MED IA, MOBILE MEDIA , WEB 25
APPLICATIONS, DIGITAL APPLICATIONS, MOBILE APPLICATIONS, AND ELECTRONIC 26
APPLICATIONS. 27

2. “DIRECT–TO–CONSUMER ADVERTISING ” DOES NOT 28
INCLUDE AN ADVERTISE MENT MADE THROUGH PU BLICATION IN JOURNAL S AND 29
OTHER PERIODICALS. 30

(2) THE ADDITION UNDER SU BSECTION (A) OF THIS SECTION 31
INCLUDES ANY EXPENSES PAID OR INCURRED DURING THE TAXABLE YEAR THAT ARE 32
HOUSE BILL 484 3

DEDUCTED UNDER § 162 OF THE INTERNAL REVENUE CODE FOR 1
DIRECT–TO–CONSUMER ADVERTISING OF COVERED DRUGS. 2

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 4