Sec. 14204. Tax certificate program for broadcast station transactions furthering ownership by socially disadvantaged individuals
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Part I of title III of the Communications Act of 1934 ( 47 U.S.C. 301 et seq.) is amended by adding at the end the following: Upon application by a person who engages in a sale of an interest in a broadcast station described in subsection (b), subject to the rules adopted by the Commission under subsection (c), the Commission shall issue to such person a certificate stating that such sale meets the requirements of this section. The sales described in this subsection are the following:
A sale of an interest in a broadcast station if, immediately following the sale, the station is owned by socially disadvantaged individuals (regardless of whether the station was owned by socially disadvantaged individuals before the sale). In the case of a person who has contributed capital in exchange for an interest in a broadcast station that is owned by socially disadvantaged individuals, a sale by such person of some or all of such interest. The Commission shall adopt rules for the issuance of a certificate under subsection
(a)that provide for the following: A limit on the value of an interest the sale of which qualifies for the issuance of such a certificate. The limit shall be no lower than $10,000,000 and no higher than $50,000,000. In the case of a sale described in subsection (b)(1), a minimum period following the sale during which the broadcast station must remain owned by socially disadvantaged individuals. The minimum period shall be no longer than 3 years. A limit on the total number of sales or the total value of sales, or both, for which a person may be issued certificates under subsection (a). Requirements for participation by socially disadvantaged individuals in the management of the broadcast station. The Commission shall submit to Congress an annual report describing the sales for which certificates have been issued under subsection
(a)during the period covered by the report. In this section: The term owned by socially disadvantaged individuals means, with respect to a broadcast station, that— such station is at least 51 percent owned by one or more socially disadvantaged individuals, or, in the case of any publicly owned broadcast station, at least 51 percent of the stock of such station is owned by one or more socially disadvantaged individuals; and the management and daily business operations of such station are controlled by one or more of such individuals. The term socially disadvantaged individual means a woman or an individual who has been subjected to racial 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. . The Commission shall adopt rules to implement section 344 of the Communications Act of 1934, as added by paragraph (1), not later than 1 year after the date of the enactment of this Act. Not later than 6 years after the date of the enactment of this Act, the Commission shall submit to Congress a report regarding whether Congress should expand section 344 of the Communications Act of 1934, as added by paragraph (1), beyond broadcast stations to cover other entities regulated by the Commission. Not later than 60 days after the date of the enactment of this Act, the Commission shall initiate an examination of whether there is a nexus between diversity of ownership or control of broadcast stations (including ownership or control by members of minority groups or women, or by both members of minority groups and women) and diversity of the viewpoints expressed in the matter broadcast by broadcast stations. Not later than 2 years after the date of the enactment of this Act, the Commission shall submit to Congress a report on the findings of the Commission in the examination under subparagraph (A), including supporting data. Subchapter O of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after part IV the following new part: If a sale of an interest in a broadcast station, within the meaning of section 344 of the Communications Act of 1934, is certified by the Federal Communications Commission under such section, such sale shall, if the taxpayer so elects, be treated as an involuntary conversion of such property within the meaning of section 1033. For purposes of such section as made applicable by the provisions of this section, stock of a corporation operating a broadcast station shall be treated as property similar or related in service or use to the property so converted. The part of the gain, if any, on such sale to which section 1033 is not applied shall nevertheless not be recognized, if the taxpayer so elects, to the extent that it is applied to reduce the basis for determining gain or loss on any such sale, of a character subject to the allowance for depreciation under section 167, remaining in the hands of the taxpayer immediately after the sale, or acquired in the same taxable year. The manner and amount of such reduction shall be determined under regulations prescribed by the Secretary. Any election made by the taxpayer under this section shall be made by a statement to that effect in his return for the taxable year in which the sale takes place, and such election shall be binding for the taxable year and all subsequent taxable years. If— there is nonrecognition of gain or loss to a taxpayer under this section with respect to a sale of property (determined without regard to this paragraph), and the taxpayer ceases to fulfill any requirements of the rules adopted by the Federal Communications Commission under paragraph
(2)or
(4)of section 344(c) of the Communications Act of 1934 (as such rules are in effect on the date of such sale), there shall be no nonrecognition of gain or loss under this section to the taxpayer with respect to such sale, except that any gain or loss recognized by the taxpayer by reason of this subsection shall be taken into account as of the date on which the taxpayer so ceases to fulfill such requirements. For basis of property acquired on a sale treated as an involuntary conversion under subsection (a), see section 1033(b). . The table of parts for subchapter O of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item related to part IV the following new part: Part V—Sale of Interest in Certain Broadcast Stations Section 1071. Nonrecognition of gain or loss from sale of interest in certain broadcast stations. . The amendments made by this section shall apply with respect to sales of interests in broadcast stations after the date that is 1 year after the date of the enactment of this Act. The amendments made by this section shall not apply with respect to sales of interests in broadcast stations after the date that is 16 years after the date of the enactment of this Act.
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Sec. 14204
Tax certificate program for broadcast station transactions furthering ownership by socially disadvantaged individuals
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