118 HR 6072 IH: Independent Programmers Tax Incentive Act U.S. House of Representatives 2023-10-26 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS1st SessionH. R. 6072IN THE HOUSE OF REPRESENTATIVESOctober 26, 2023Mr. 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. Cárdenas, 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 concernedA BILLTo amend the Internal Revenue Code of 1986 to provide tax credits for carriage of independent programmers by certain multichannel video programming distributors.

1.

Short title

This Act may be cited as the Independent Programmers Tax Incentive Act.

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:

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.

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..