A bill to amend the Internal Revenue Code of 1954 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 provide that the amount of any contributions to any No Net Cost Tobacco Fund or any No Net Cost Tobacco Account shall be treated as a deductible expense which is not chargeable to a capital account. Provides that amounts subsequently received by the taxpayer in connection with no cost tobacco expenditures shall be included in the gross income of the taxpayer for the taxable year in which such amount is received.

Provides that no amounts received by a No Net Cost Tobacco Fund or a No Net Cost Tobacco Account as either no net cost tobacco expenditures or interest or investment income on the balance in the Fund or Account shall be treated as income to the organization administering such Fund or Account.