Broadcast VOICES Act
The Broadcast VOICES Act would push the Federal Communications Commission (FCC) to take steps aimed at increasing ownership of broadcast stations by socially disadvantaged individuals (SDIs), defined mainly as women or individuals who have faced racial or ethnic prejudice. It pairs data collection and reporting with a set of incentives: a new tax certificate program for qualifying station sales to SDIs, potential tax-deferred treatment for such sales, and a new tax credit for charitable contributions that support training SDIs to manage and operate stations. The bill also requires the FCC to study the link between ownership diversity and viewpoint diversity, and it lays out a process for issuing rules and reporting progress to Congress. Several provisions are time-limited (with a 16-year sunset) and come with specific caps and holding-period requirements, creating a structured yet potentially far-reaching framework for reshaping ownership in the broadcasting sector. In short, the bill seeks to expand SDI ownership through regulatory action, data-driven oversight, and tax incentives for both transactions and charitable contributions that develop SDI broadcast management capacity.
Key Points
- 1FCC-wide ownership diversification program with a new tax certificate mechanism (Section 346) to encourage sales or transfers of broadcast interests to socially disadvantaged individuals, including defined holding-period requirements and a $50 million cap on qualifying sale value.
- 2Definitions and criteria for “owned by socially disadvantaged individuals” and “socially disadvantaged individual,” plus requirements for SDI management/control of the station to qualify for certificates.
- 3Certification process and compliance rules: the FCC would issue certificates for qualifying sales, with periodic (every 180 days) certifications during the holding period, minimum holding period of 2-3 years, and rules on participation in management; potential IRS and Congressional reporting for noncompliance.
- 4Annual reporting to Congress on the certificates issued and a biennial report on the number and value of SDI-owned stations, plus data collection and recommended steps to increase SDI ownership (Section 4).
- 5Sale tax treatment: nonrecognition of gain or loss for certain certified sales under IRC 1033, enabling deferral of gains through an election in the tax return; provisions include treatment as involuntary conversion and a mechanism to adjust basis, with rules on continued compliance and sunset after 16 years (Section 5).
- 6Tax credit for contributions to develop SDI ownership: a new Section 45BB credit for qualified contributions to entities that train SDIs in broadcast station management, equal to the fair market value of contributed stations or interests, with a 2-year retention requirement and prohibition on deducting the contribution as a charitable deduction (Section 6).
- 7Effective dates and sunsets: rules to implement the new provisions within one year, apply to sales after one year post-enactment, and sunset the program after 16 years; contributions and related tax credits apply to years after enactment.