I 
117TH CONGRESS 
1ST SESSION H. R. 5056 
To amend the Internal Revenue Code of 1986 to provide tax credits for 
carriage of independent programmers by qualified distributors and multi-
channel video programming distributors. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 20, 2021 
Ms. CLARKE of New York introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
tax credits for carriage of independent programmers by 
qualified distributors and multichannel video program-
ming distributors. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CARRIAGE OF INDEPENDENT PROGRAMMERS 
TAX CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
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‘‘SEC. 45U. CARRIAGE OF INDEPENDENT PROGRAMMERS 
CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 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 agree-
ment 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 
number of subscribers per month 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— 
‘‘(1) $0.10, multiplied by 
‘‘(2) 3 times the average number of subscribers 
of the eligible distributor on days during such tax-
able year. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) ELIGIBLE DISTRIBUTOR.—The term ‘eligi-
ble distributor’ means— 
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‘‘(A) any person engaged in the trade or 
business of being a qualified distributor or mul-
tichannel video programming distributor, as 
such term is defined in section 76.1000 of title 
47 of the Code of Federal Regulations, and 
‘‘(B) any person engaged in the trade or 
business of being a virtual multichannel video 
programming distributor. 
‘‘(2) 
AGREEMENT
FOR
QUALIFYING
CAR-
RIAGE.—The term ‘agreement for qualifying car-
riage’ means a written agreement between an eligible 
distributor and a qualified independent programmer 
that provides for new or expanded carriage of a 
qualified independent programmer to at least 40 
percent of a subscriber base and which requires the 
eligible distributor to pay a license fee to the quali-
fied independent programmer. 
‘‘(3) 
QUALIFIED
INDEPENDENT
PRO-
GRAMMER.—The term ‘qualified independent pro-
grammer’— 
‘‘(A) means a United States-based person 
engaged in the production, creation, or whole-
sale distribution of three or fewer television 
channels in which no multichannel video pro-
gramming distributor, cable programmer, or 
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broadcast network has attributable interest, as 
such term is defined by section 1000(b) of title 
47 of the Code of Federal Regulations, and 
‘‘(B) includes rural, women, socially dis-
advantaged, and minority-owned programmers. 
‘‘(4) CABLE
PROGRAMMER.—The term ‘cable 
programmer’ means WarnerMedia LLC, The Walt 
Disney Company, News Corporation, CBSViacom, 
Inc., Discovery, Inc., Comcast and their managed or 
controlled subsidiaries, successors, and assigns. 
‘‘(5) LICENSE FEES.—Except as otherwise pro-
vided 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. 
‘‘(6) SOCIALLY
DISADVANTAGED.—The term 
‘socially disadvantaged’ with respect to an individual 
means that the individual has been subjected to ra-
cial or ethnic prejudice or cultural bias because of 
the identity of the individual as a member of a 
group without regard to the individual qualities of 
the individual. 
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‘‘(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 (32), 
by striking the period at the end of paragraph (33) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(34) the carriage of independent programmers 
credit determined under section 45U.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new item: 
‘‘Sec. 45U. Carriage of Independent Programmers Credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses made or incurred after 
December 31, 2020, in taxable years ending after such 
date. 
Æ 
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