Advertising Taxes

Taxes on Advertising Inhibit Economic Growth and Raise Prices for Consumers

Every dollar spent on advertising and marketing by ANA members is fully deductible from federal corporate income tax as an "ordinary and necessary" business expense, as advertising is deemed as essential to business as office space, staff, equipment, research and development, and other expenses that help generate income and drive sales. The importance of the deduction to our members cannot be overstated.

ANA works tirelessly to preserve this deduction on both the federal and state levels. We continue to fight for the full federal deductibility of advertising expenses, as has been permitted since the inception of the federal corporate income tax in the early 20th century. On the state level, we strongly oppose efforts to tax any aspect of the advertising process.

ANA Helps Preserve Tax Deduction in the "One Big, Beautiful Bill"

Recently, as Congress developed what became President Trump's "One Big, Beautiful Bill," sources on Capitol Hill informed us that "everything" was on the table as Congress sought new sources of revenue to offset the continuation of the 2017 tax cuts and other spending priorities. This included the advertising tax deduction. A proposal to allow only a 50 percent deduction of advertising expenses in the year incurred, with the rest amortized over a 5- or 10-year period, was considered early in the process.

Thanks to the ANA's efforts and the efforts of The Advertising Coalition (TAC), changes to the tax deduction for advertising expenses were omitted in the final bill that was signed by the president on July 4, 2025.

Economic Impact Study Demonstrates the Importance of Advertising to the U.S. Economy

ANA and The Advertising Coalition (TAC) have released a study in 2025 conducted by S&P Global Market Intelligence that demonstrates the importance of advertising as a driving force in the United States economy.

Among the findings:

• Advertising supported $10.4 trillion in sales activity in 2024 — 21.9 percent of total U.S. economic output.
• Advertising supported 29 million of the 158.1 million jobs in the U.S. in 2024, or 18.3 percent of the total American workforce.
• Every $1 million spent on annual advertising expenses supports 59 American jobs.
• The average salary for jobs supported by advertising was 26 percent above the national average.

By 2029, advertising's impact to the economy is projected to increase to $12.7 trillion in sales activity and 32.1 million jobs. 

While these findings cover the U.S. economy as a whole, the study also breaks down the importance of advertising to the economies of every state and Congressional district nationwide. This study is an important tool in helping ANA and TAC educate members of Congress and the executive branch on the role advertising plays in sustaining the U.S.'s economic vitality.

• Download the full study (PDF)

Keep Track of What’s Happening

To find out more about a specific proposal to tax advertisers, please visit our federal legislative tracking page, utilize the state legislative monitoring service provided to all ANA members, and sign up for ANA Government Relation’s weekly newsletter, The ADviser, by emailing washington@ana.net.