The civic record
Read. Follow. Verify.Maryland Senate Bill 987 Adds Tax Modification for Pharmaceutical Advertising and Directs Revenue to Health Programs
Last action · March 5, 2026: Hearing 3/11 at 1:00 p.m.Sponsor: Lewis Young
Track this bill to get notified when it advances a stage. One tap to stop, anytime.
What This Bill Would Do
Maryland Senate Bill 987 requires corporations to add back direct-to-consumer prescription drug advertising expenses to their Maryland modified income. The resulting tax revenue is directed first to Medicaid eligibility operations up to $5,000,000, with the remaining balance allocated to the Maryland Health Benefit Exchange Fund for health insurance subsidies starting July 1, 2026.
Pharmaceutical companies face increased state tax liabilities on consumer advertising spending, while state health agencies and health exchange programs receive new funding streams earmarked for Medicaid operations and consumer premium subsidies.
Who It Would Affect
Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.
Corporations advertising covered drugs
Corporations must add back direct-to-consumer advertising expenses for covered drugs when calculating their Maryland modified income.
Maryland Department of Health
Receives the first $5,000,000 of revenue attributable to the addition modification to fund Medicaid eligibility operations.
Maryland Health Benefit Exchange
Receives remaining revenue to allocate toward health insurance subsidy programs aimed at improving affordability.
Key Facts
- Corporations must add back expenses paid or incurred during the taxable year that are deducted under Section 162 of the Internal Revenue Code for direct-to-consumer advertising of covered drugs to determine Maryland modified income.
- The first $5,000,000 of revenue generated from this tax addition modification is distributed to the Maryland Department of Health for Medicaid eligibility operations.
- Remaining revenue from the tax addition modification is distributed to the Maryland Health Benefit Exchange Fund.
- Funds distributed to the Maryland Health Benefit Exchange Fund are restricted for funding health insurance subsidy programs, including the State-Based Young Adult Health Insurance Subsidies Program.
Show all 6 facts
- The Board of Trustees of the Maryland Health Benefit Exchange must allocate these funds between health insurance subsidy programs to improve coverage affordability.
- The act takes effect July 1, 2026, and applies to all taxable years beginning after December 31, 2025.
Frequently Asked Questions
Where does the revenue collected from this tax modification go?
What else do you want to know?
News Coverage
Follow the record
Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
3 actions- Mar 5, 2026SenateHearing 3/11 at 1:00 p.m.
- Mar 4, 2026SenateCommitteeRereferred to Budget and Taxation
- Feb 15, 2026SenateIntroducedFirst Reading Senate Rules
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Corporate Advertising Tax Linked Directly to Health Subsidies
The bill creates a direct financial link between corporate spending on pharmaceutical marketing and state-funded health insurance premium subsidies.
Connected Entities
Sources
mgaleg.maryland.gov
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy50Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
Publisher tools