To amend the Internal Revenue Code of 1986 to provide that the amount of any contribution to any No Net Cost Tobacco Fund or any No Net Cost Tobacco Account shall be treated as a deductible expense.

Amends the Internal Revenue Code to treat as a deductible expense not chargeable to a capital account any contribution to a No Net Cost Tobacco Fund or Account. Includes in the gross income of the taxpayer amounts subsequently received in connection with no cost tobacco expenditures.