By OAAA

In a “big win” for advertising, the tax-reform bill approved by Congress (December 20) preserves deductibility of advertising as a business expense.

“Being out of this tax package — after advertising deductibility was threatened — is a big win for the ad community,” said Dan Jaffe of ANA (Association of National Advertisers).

The Outdoor Advertising Association of America (OAAA) was part of a broad coalition that fought successfully to protect deductibility of advertising.  Billboard operators contacted key members of Congress on behalf of ad deductibility, such as Dewey Reagan’s letter to home-state Senator Orrin Hatch, R-UT:

From the federal standpoint, here is a look-ahead regarding tax policy impacting advertising:

• The ad-deductibility issue should be quiet for the near future
• If Democrats take control of Congress via the 2018 mid-term election, expect more populist rhetoric about the cost of advertising prescription drugs directly to consumers
• Phase-outs in the just-passed tax bill will force eventual re-examination of overall tax policy. Therefore, the advertising lobby will be on alert to protect deductibility of advertising.

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