Physician Payments Sunshine Act of 2008 - Amends part A of title XI of the Social Security Act to require quarterly transparency reports to the Secretary of Health and Human Services of payments to physicians or their employers, or to a covered organization in which a physician has a significant professional membership interest, by manufacturers of covered drugs, devices, or medical supplies under titles XVIII (Medicare), XIX (Medicaid), or XXI (State Children's Health Insurance Program (SCHIP)) of the Social Security Act.
Amends the Internal Revenue Code to prohibit tax deductions for the advertising, promotion, or marketing by manufacturers of drugs, devices, and medical supplies on whom a penalty is imposed for failing to meet the requirements of this Act.