[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3229 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3229

 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
    the cost of certain equipment used to convert public television 
           broadcasting from analog to digital transmission.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 24 (legislative day, September 22), 2000

  Mr. Kerrey introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
    the cost of certain equipment used to convert public television 
           broadcasting from analog to digital transmission.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TAX CREDIT FOR PUBLIC TELEVISION DIGITAL TRANSMISSION 
              CONVERSIONS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to general business 
credits) is amended by adding at the end the following:

``SEC. 45D. CREDIT FOR PUBLIC TELEVISION DIGITAL TRANSMISSION 
              CONVERSIONS.

    ``(a) In General.--For purposes of section 38, the amount of the 
public television digital transmission conversion credit determined 
under this section for an eligible taxpayer for each taxable year in 
the credit period with respect to an eligible public television 
conversion project shall be an amount equal to \1/6\ of the qualified 
conversion equipment costs in connection with such project.
    ``(b) Eligible Taxpayer; Eligible Public Television Conversion 
Project.--For purposes of this section--
            ``(1) Eligible taxpayer.--The term `eligible taxpayer' 
        means any limited partnership or limited liability company--
                    ``(A) the sole purpose of which is to acquire 
                qualified conversion equipment for lease at nominal 
                rent payments to a public telecommunications entity in 
                connection with 1 or more eligible public television 
                conversion projects,
                    ``(B) the general partner, general partners, or 
                managers of which consist solely of 1 or more qualified 
                public broadcasting organizations, and
                    ``(C) which makes an irrevocable election (binding 
                on the eligible taxpayer and all successors in interest 
                as lessor under the qualified conversion equipment 
                lease) not to claim depreciation with respect to such 
                qualified conversion equipment.
            ``(2) Eligible public television conversion project.--The 
        term `eligible public television conversion project' means any 
        project to convert the television broadcasting of a public 
        telecommunications entity from analog to digital transmission.
    ``(c) Qualified Conversion Equipment Costs.--For purposes of this 
section--
            ``(1) In general.--The term `qualified conversion equipment 
        costs' for a taxable year means the aggregate fair market value 
        of qualified conversion equipment acquired or constructed by an 
        eligible taxpayer at the direction of, and in full compliance 
        with such bidding requirements as may be applicable to, a 
        qualified public broadcasting organization.
            ``(2) Qualified conversion equipment.--The term `qualified 
        conversion equipment' means property used by a qualified public 
        broadcasting organization under a lease with nominal rent 
        payments with an eligible taxpayer in an eligible public 
        television conversion project, including--
                    ``(A) transmission towers,
                    ``(B) transmission equipment,
                    ``(C) production equipment, including cameras, 
                recorders, software and editing systems,
                    ``(D) retransmission equipment,
                    ``(E) transformers, and
                    ``(F) such other property (other than land) 
                necessarily related to the property described in 
                subparagraphs (A) through (E) or used for the repair or 
                maintenance of such property.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Public telecommunications entity.--The term `public 
        telecommunications entity' has the meaning given such term by 
        section 397(12) of the Communications Act of 1934 (47 U.S.C. 
        397(12)).
            ``(2) Credit period.--The term `credit period' means, with 
        respect to any eligible public television conversion project, 
        the period of 6 taxable years beginning with the first taxable 
        year the qualified conversion equipment costs of the eligible 
        taxpayer in connection with such project are taken into 
        account.
            ``(3) Qualified public broadcasting organization.--The term 
        `qualified public broadcasting organization' means--
                    ``(A) a public telecommunications entity, or
                    ``(B) an organization described in section 
                501(c)(3) and exempt from tax under section 501(a) and 
                whose exempt purposes include the representation, 
                promotion, or support of public television stations.
    ``(e) Special Rule.--A credit shall be allowed under subsection (a) 
notwithstanding the provisions of section 183 (activities not engaged 
in for profit), section 168(h) (tax-exempt use property), and any 
provision of law which would limit the allowance of the credit because 
of the terms of any lease or purchase option between an eligible 
taxpayer and a public telecommunications entity.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section, including regulations providing for the ratable recapture of 
the credit if during the credit period property qualifying for the 
credit under this section is disposed of or otherwise ceases to be 
qualified conversion equipment.''.
    (b) Inclusion in General Business Credit.--
            (1) In general.--Section 38(b) of the Internal Revenue Code 
        of 1986 (relating to current year business credit) is amended 
        by striking ``plus'' at the end of paragraph (11), by striking 
        the period at the end of paragraph (12) and inserting ``, 
        plus'', and by adding at the end the following:
            ``(13) the public television digital transmission 
        conversion credit determined under section 45D(a).''.
            (2) Transition rule.--Section 39(d) of such Code (relating 
        to transitional rules) is amended by adding at the end the 
        following:
            ``(9) No carryback of section 45d credit before 
        enactment.--No portion of the unused business credit for any 
        taxable year which is attributable to the public television 
        digital transmission conversion credit determined under section 
        45D may be carried back to a taxable year ending before the 
        date of the enactment of section 45D.''.
    (c) Conforming Amendment.--The table of sections for 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 item:

                              ``Sec. 45D. Credit for public television 
                                        digital transmission 
                                        conversions.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
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