Broadcast VOICES Act
The Broadcast VOICES Act would push the Federal Communications Commission (FCC) to actively promote ownership diversity in the U.S. broadcasting industry. It does three main things: (1) creates a tax certificate program that incentivizes sales or transfers of broadcast stations to socially disadvantaged individuals (defined for this purpose as women or individuals who have faced racial/ethnic prejudice); (2) authorizes a new tax credit for donations to entities that train socially disadvantaged individuals to run broadcast stations; and (3) requires the FCC to collect and report data on ownership diversity and to study whether ownership diversity is linked to diversity of viewpoints on air. The combined set of provisions is designed to encourage more women- and minority-owned stations and to channel private contributions toward training programs in broadcasting management. Potential impacts include increased opportunities for socially disadvantaged individuals to own or control stations, greater regulatory and tax incentives around such transactions, more data on ownership trends, and constituencies for diversifying broadcast ownership. It also creates new regulatory and tax compliance requirements for buyers, sellers, and charities involved in qualifying transactions or contributions.
Key Points
- 1Establishment of a Tax Certificate Program for Broadcast Station Transactions (Section 346).
- 2- Allows FCC-issued certificates for sales that result in or preserve ownership/control by socially disadvantaged individuals (defined as women or individuals facing racial/ethnic prejudice). For publicly traded stations, more than 50% of securities must be owned by such individuals, with management and daily operations controlled by them.
- 3- Rules to govern qualifying sales include a sale value cap (not to exceed $50 million), a minimum holding period (2–3 years), annual limits on the number or value of qualifying sales, and requirements for participation of socially disadvantaged individuals in management.
- 4- Buyers must certify every 180 days during the holding period; failures to certify are reportable to the IRS and Congress.
- 5- FCC must issue implementing rules within 1 year of enactment; Congress may consider broader expansion after about 6 years.
- 6Data, Reports, and Findings to Congress (Section 4 and related findings).
- 7- Biennial FCC reports to Congress on how to increase the number and value of stations owned by socially disadvantaged individuals (due within 180 days post-enactment and again every 2 years).
- 8- A separate biennial report identifying the total number of stations owned by socially disadvantaged individuals (based on Form 323 data).
- 9- An explicit examination and report within 2 years on whether there is a nexus between ownership/diversity and viewpoints broadcast.
- 10Tax Treatment for Qualifying Sales (Section 5).
- 11- Creates an option (Sec. 1071) for nonrecognition of gain or loss on a qualifying sale, treating the transaction as an involuntary conversion under 1033 if the seller elects. This includes basis adjustments and conditions tied to maintaining the ownership/control requirements.
- 12- If the seller ceases to meet the FCC rules during the holding period, the nonrecognition treatment ends for that sale.
- 13Tax Credit for Charitable Contributions Related to Training (Section 6).
- 14- Adds a new tax credit (Sec. 45BB) equal to the fair market value of a broadcast station (or an interest) contributed to a qualified charity that trains socially disadvantaged individuals in running stations, provided the recipient holds the station for at least 2 years.
- 15- The credit is a general business credit; the contributing entity cannot deduct the contribution as a charitable deduction.
- 16- Applies to contributions made in taxable years after enactment; recipient must be FCC-certified.
- 17Sunset and Effective Date Provisions.
- 18- The tax-related provisions tied to the sale of station interests would apply to sales after 1 year post-enactment and would sunset after 16 years.
- 19- The contribution credit applies to contributions made after enactment.