Broadcast station sellers and donors could qualify for tax breaks

Sellers could choose to delay taxes on gains from station sales certified by the Federal Communications Commission (FCC). This option would cover sales of broadcast-station ownership interests certified under the proposal’s ownership program. Sellers would choose this treatment on their tax return for the year of sale, under the referenced federal tax rules. If the taxpayer stops meeting required holding or management rules, the gain or loss would count for taxes at that time. Covered sales must occur after the first anniversary of enactment and on or before the 16th anniversary.

The FCC would issue certificates for sales that meet the program’s ownership requirements and rules. Qualifying owners would be women or people who faced racial, ethnic, or cultural bias because of their group identity. Qualifying owners must control management and daily operations and own more than 50% of the station or its publicly traded securities, unless the FCC sets another percentage. Investors could also qualify by selling interests received for putting money into stations owned by these groups. Certificate issuance would depend on the FCC’s program rules. The program would cover sales after the first anniversary of enactment and on or before the 16th anniversary.

The FCC would set sale limits and continued-ownership rules for certificates. The holding rule would cover sales that qualify because of who owns the station immediately afterward. The sale-value cap could be no higher than $50 million. Yearly limits per seller would cover the number or value of sales, or both. Buyers covered by the holding rule would confirm ownership and management compliance every 180 days. The FCC would set the required period of continued qualifying ownership at two to three years after the sale.

Donors could claim a business tax credit equal to a qualifying station gift’s market value. The credit would cover gifts of broadcast stations or ownership interests in them. The recipient must be an eligible charity whose purposes include FCC-certified training in station management and operations for women or people who faced racial, ethnic, or cultural bias. The charity must keep the donated station or ownership interest for at least two years. Donors could not also claim a charitable deduction for the same gift. The credit would apply to gifts made in tax years beginning after enactment.

The FCC would report on station ownership and study its connection to broadcast viewpoints. Ownership reports would count stations owned and run by women or people who faced racial, ethnic, or cultural bias and recommend ways to increase their number and value. For the ownership reports, those owners must hold more than 50% of the station or its publicly traded securities, unless the FCC sets another percentage. Ownership reports would start within 180 days after enactment and repeat at least every two years. Findings from the viewpoint study would be due within two years after enactment.