Advertising Taxes

Click here to download the full study


The Advertising Coalition (TAC)

Since the last major overhaul of the Federal Tax Code in 1986, there have been numerous proposals to end the tax deduction for advertising expenses, either partially or totally. ANA and The Advertising Coalition (TAC) have been successful in defeating every one of these proposals.

IHS Economics & Country Risk Study Demonstrates the Importance of Advertising to the U.S. Economy

ANA and The Advertising Coalition (TAC) have released a landmark new study conducted by IHS Economics & Country Risk that demonstrates the importance of advertising as a driving force in the United States economy. 

Among the findings:

  • Advertising contributed $3.4 trillion to the U.S. GDP in 2014, comprising 19 percent of the nation’s total economic output.
  • Each dollar spent on advertising expenses generates nearly $19 of economic output that would not have otherwise existed.
  • In 2014, advertising accounted for $5.8 trillion in overall consumer sales and supported, totaling 16 percent of all sales activity in the U.S.
  • Advertising supported 20 million, or 14 percent, of the 142 million jobs in the U.S. in 2014.
  • Every $1 million spent on annual advertising expenses supports 67 American jobs.
  • Every direct advertising job supported another 34 jobs across all industries.

Click here a summary of the key findings of the report

Click here download the study in full

In April 2017, 124 Members of Congress signed a letter to maintain the treatment of advertising as an ordinary and necessary business expense.
In October 2017, 15 Senators echoed that sentiment with their own letter supporting full advertising tax deductibility.

House, Senate Tax Reform Legislation Preserves the Advertising Deduction

The House Ways & Means Committee and Chairman Kevin Brady (R-TX) released the long-anticipated Tax Cut and Jobs Act (H.R. 1) on November 2, 2017. The 429-page bill represented the most significant changes to the tax code since the landmark Tax Reform Act of 1986. The final bill was passed by Congress on December 20, 2017 and signed into law by President Trump on December 22. The corporate tax rate was lowered from a 35 percent statutory rate to 21 percent, while a number of deductions were changed or eliminated to help pay for the lower overall rate. Fortunately, this did not include the full and immediate deduction of advertising expenses.

For more information on ANA's response to the bill's passage, please click here.