S.Amdt. 3202

SA 3202. Mr. BEGICH submitted an amendment intended to be proposed to
amendment SA 2786 proposed by Mr. Reid (for himself, Mr. Baucus, Mr.
Dodd, and Mr. Harkin) to the bill H.R. 3590, to amend the Internal
Revenue Code of 1986 to modify the first-time homebuyers credit in the
case of members of the Armed Forces and certain other Federal
employees, and for other purposes; which was ordered to lie on the
table; as follows:

On page 2074, after line 25, add the following:

SEC. 9___. DISALLOWANCE OF DEDUCTION FOR DIRECT TO CONSUMER
ADVERTISING EXPENSES FOR PRESCRIPTION
PHARMACEUTICALS.

(a) In General.--Part IX of subchapter B of chapter 1 of
subtitle A of the Internal Revenue Code of 1986 (relating to
items not deductible) is amended by adding at the end the
following new section:

``SEC. 280I. DISALLOWANCE OF DEDUCTION FOR DIRECT TO CONSUMER
ADVERTISING EXPENSES FOR PRESCRIPTION
PHARMACEUTICALS.

``No deduction shall be allowed under this chapter for
expenses relating to direct to consumer advertising in any
media for the sale and use of prescription pharmaceuticals
for any taxable year.''.
(b) Conforming Amendment.--The table of sections for such
part IX of the Internal Revenue Code of 1986 is amended by
adding after the item relating to section 280H the following
new item:

``Sec. 280I. Disallowance of deduction for direct to consumer
advertising expenses for prescription pharmaceuticals.''.

(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act, in taxable years ending after such
date.

SEC. 9___. PHYSICAL LIFESTYLES FOR AMERICA'S YOUTH (PLAY)
DEDUCTION.

(a) In General.--Part VII of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by redesignating
section 224 as section 225 and inserting after section 223
the following new section:

``SEC. 224. FEES FOR ORGANIZATIONS PROMOTING CHILDREN'S
PHYSICAL ACTIVITY.

``(a) General Rule.--There shall be allowed as a deduction
under this chapter an amount equal to the lesser of--
``(1) the amount paid or incurred by the taxpayer during
the taxable year for the participation of a qualifying child
(as defined in section 152(c)) of the taxpayer in a qualified
organization, or
``(2) $500.
``(b) Limitations.--
``(1) In general.--No deduction shall be allowed under
subsection (a) with respect to any taxpayer whose adjusted
gross income for the taxable year exceeds $250,000.
``(2) Adjusted gross income.--For purposes of this
subsection, adjusted gross income shall be determined--
``(A) without regard to this section and sections 199, 911,
931, and 933, and
``(B) after the application of sections 86, 135, 137, 219,
221, 222, and 469.
``(c) Qualified Organization.--For purposes of this
section, the term `qualified organization' means any other
organization the principal activities of which are designed
to promote or provide for the physical activity of children,
as determined under guidelines published by the Secretary in
consultation with the Secretary of Health and Human
Services.''.
(b) Clerical Amendment.--The table of sections for part VII
of subchapter B of chapter 1 of such Code is amended by
redesignating the item relating to section 224 as relating to
section 225 and inserting after the item relating to section
223 the following new item:

``Sec. 224. Fees for organizations promoting children's physical
activity.''.

(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
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