Independent Programmers Tax Incentive Act

To 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 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 (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 (3) Virtual multichannel video programming distributor The term virtual multichannel video programming distributor (4) Video programming The term video programming (5) Agreement for qualifying carriage The term agreement for qualifying carriage (6) Qualified independent programmer (A) In general The term qualified independent programmer (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 (C) Publicly-traded company The term publicly-traded company (D) Network The term network (E) Television station company The term television station company (F) Cognizable interest The term cognizable interest (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 , plus (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 qualified independent programmer section 45BB(c) (c) Disclosure of tax return information Section 6103(l) (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 .

Summary: 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.