[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6072 Introduced in House (IH)]

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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.''.
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