MD SB987

Disallows Maryland corporate income tax deductions for direct-to-consumer pharmaceutical advertising expenses that are deducted under federal IRC § 162, effectively increasing taxable income for companies that advertise prescription drugs to the general public

Defines covered advertising broadly to include TV, radio, telephone, direct mail, billboards, internet, social media, and mobile/digital applications, but excludes advertisements in medical journals and periodicals

Directs the first $5,000,000 of revenue generated to the Maryland Department of Health for Medicaid eligibility operations

Allocates remaining revenue to the Maryland Health Benefit Exchange Fund to fund state-based health insurance subsidy programs, including the Young Adult Health Insurance Subsidies Program

Takes effect July 1, 2026, applying to taxable years beginning after December 31, 2025