Independent Programmers Tax Incentive Act
This bill allows a new tax credit for carriage of qualified independent programmers by eligible distributors and multichannel video programming distributors based on license fees and the average number of subscribers. The bill defines eligible distributor as any person that is either engaged in the trade or business of being a multichannel video programming distributor, or a virtual multichannel video programming distributor.
The term multichannel video programming distributor is defined in federal regulations as any entity engaged in the business of making available for purchase, by subscribers or customers, multiple channels of video programming. Such entities include, but are not limited to, a cable operator, a BRS/EBS provider, a direct broadcast satellite service, a television receive-only satellite program distributor, and a satellite master antenna television system operator, as well as buying groups or agents of all such entities.
The bill defines qualified independent programmer as a U.S.-based person engaged in the production, creation, or wholesale distribution of linear video programming (including, but not limited to, women-, minority-, or socially disadvantaged-, owned programmers) if such person is not a publicly-traded company, multichannel video programming distributor, virtual multichannel video programming distributor, network, or television station company.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6072 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 6072
To amend the Internal Revenue Code of 1986 to provide tax credits for
carriage of independent programmers by certain multichannel video
programming distributors.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 26, 2023
Mr. Bilirakis (for himself, Ms. Clarke of New York, Mr. Steube, Mr.
Panetta, Mrs. Miller of West Virginia, Mr. Valadao, Ms. Salazar, Mr.
Soto, Mr. Carter of Georgia, Ms. Schakowsky, Ms. Castor of Florida, Mr.
Cardenas, and Ms. Kelly of Illinois) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addition
to the Committee on Energy and Commerce, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax credits for
carriage of independent programmers by certain multichannel video
programming distributors.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Independent Programmers Tax
Incentive Act''.
SEC. 2. CARRIAGE OF INDEPENDENT PROGRAMMERS TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. CARRIAGE OF INDEPENDENT PROGRAMMERS CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, in the case
of any eligible distributor, the carriage of independent programmers
credit determined under this section for the taxable year is, with
respect to each agreement for qualifying carriage entered into by such
eligible distributor, the lesser of--
``(1) the net license fees paid or incurred by such
eligible distributor during such taxable year under such
agreement for qualifying carriage, or
``(2) the product of $0.10 multiplied by the average number
of monthly subscribers (for calendar months during such taxable
year) to which carriage is provided under such agreement.
``(b) Maximum Credit.--The credit determined under this section
with respect to any eligible distributor for any taxable year shall not
exceed the product of $0.30 multiplied by the average number of monthly
subscribers (for calendar months during such taxable year).
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Eligible distributor.--The term `eligible
distributor' means any person which is either--
``(A) engaged in the trade or business of being a
multichannel video programming distributor, or
``(B) a virtual multichannel video programming
distributor.
``(2) Multichannel video programming distributor.--The term
`multichannel video programming distributor' has the meaning
given such term in section 76.1000(e) of title 47 of the Code
of Federal Regulations.
``(3) Virtual multichannel video programming distributor.--
The term `virtual multichannel video programming distributor'
means any person engaged in the trade or business of making
available directly to the end user, by means of the Internet or
other IP-based transmission path, multiple streams of linear
video programming.
``(4) Video programming.--The term `video programming' has
the meaning given such term in section 79.4(a)(1) of title 47
of the Code of Federal Regulations.
``(5) Agreement for qualifying carriage.--The term
`agreement for qualifying carriage' means a written agreement
between an eligible distributor and a qualified independent
programmer that provides for new or expanded carriage of one or
more linear video programming streams of a qualified
independent programmer to at least 40 percent of the eligible
distributor's subscriber base in aggregate for such linear
video programming streams and which requires the eligible
distributor to pay a license fee to the qualified independent
programmer.
``(6) Qualified independent programmer.--
``(A) In general.--The term `qualified independent
programmer' means a United States-based person engaged
in the production, creation, or wholesale distribution
of linear video programming (including, but not limited
to, women-, minority-, or socially disadvantaged-,
owned programmers) if--
``(i) such person is not a publicly-traded
company, multichannel video programming
distributor, virtual multichannel video
programming distributor, network, or television
station company, and
``(ii) no publicly-traded company,
multichannel video programming distributor,
virtual multichannel video programming
distributor, network, or television station
company has a cognizable interest in such
person.
``(B) Socially disadvantaged.--The term `socially
disadvantaged' has the meaning given such term in
section 124.103 of title 13 of the Code of Federal
Regulations.
``(C) Publicly-traded company.--The term `publicly-
traded company' means any entity if one or more equity
interests in such entity are traded on an established
securities market.
``(D) Network.--The term `network' has the meaning
given such term in section 76.55(f) of title 47 of the
Code of Federal Regulations.
``(E) Television station company.--The term
`television station company' means any person if, after
taking into account the audience reach of all
television stations under common control with such
person, such person has a national audience reach in
excess of 3 percent. Terms used in this subparagraph
which are also used in section 202(c) of the
Telecommunications Act of 1996 (or in the regulations
issued pursuant to such section) shall have the same
meaning as when used in such section (or such
regulations).
``(F) Cognizable interest.--The term `cognizable
interest' has the meaning given such term in section
76.1000(b) of title 47 of the Code of Federal
Regulations.
``(7) License fees.--Except as otherwise provided by the
Secretary, in the case of an agreement for qualifying carriage
which is net effective rate positive for the qualified
independent programmer, the appropriate amount shall be treated
as a license fee paid by the eligible distributor to the
qualified independent programmer.
``(d) Denial of Double Benefit.--No deduction shall be allowed
under this chapter for any amount to the extent that such amount is
allowed as a credit under this section.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(42) the carriage of independent programmers credit
determined under section 45BB.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45BB. Carriage of Independent Programmers Credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to expenses paid or incurred after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 3. BIENNIAL REPORT BY FCC TO CONGRESS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and not less frequently than every 2 years
thereafter, the Federal Communications Commission shall submit to
Congress a report that--
(1) states the number of qualified independent programmers
that have a linear video programming stream that is distributed
to subscribers of one or more eligible distributors and the
average length of time for which such a linear video
programming stream has been so distributed by the same eligible
distributor;
(2) states the number of qualified independent programmers
that have a linear video programming stream that is distributed
to subscribers of one or more multichannel video programming
distributors and the average length of time for which such a
linear video programming stream has been so distributed by the
same multichannel video programming distributor;
(3) states the number of qualified independent programmers
that have a linear video programming stream that is distributed
to subscribers of one or more virtual multichannel video
programming distributors and the average length of time for
which such a linear video programming stream has been so
distributed by the same virtual multichannel video programming
distributor; and
(4) contains recommendations for how to increase the number
of qualified independent programmers described in paragraph
(1).
(b) Definitions.--In this section, the terms ``eligible
distributor'', ``multichannel video programming distributor'',
``virtual multichannel video programming distributor'', ``video
programming'', and ``qualified independent programmer'' have the
meanings given such terms in section 45BB(c) of the Internal Revenue
Code of 1986, as added by section 2.
(c) Disclosure of Tax Return Information.--Section 6103(l) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(24) Disclosure of return information to federal
communications commission for biennial reports to congress.--
``(A) In general.--The Secretary shall, upon
written request from the Federal Communications
Commission, disclose to officers and employees of such
Commission such return information of taxpayers
claiming the credit allowable under section 45BB as
such Commission determines necessary to prepare the
reports required under section 2 of the Independent
Programmers Tax Incentive Act.
``(B) Restriction on disclosure.--Return
information disclosed under subparagraph (A) may be
used by officers and employees of the Federal
Communications Commission for the purposes of, and to
the extent necessary in, preparing the reports required
under section 2 of the Independent Programmers Tax
Incentive Act. Such reports shall not include return
information which is identifiable as being with respect
to a particular taxpayer.''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Communications and Technology.
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