Independent Programmers Tax Incentive Act

Bill Number

H.R. 2230

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-03-18: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-05-09T13:55:15Z

AI-Generated Summary

Purpose

The Independent Programmers Tax Incentive Act (H.R. 2230) aims to encourage multichannel video programming distributors (MVPDs), such as cable and satellite providers, and virtual MVPDs (like internet streaming services) to carry content from independent video programmers. It does this by offering tax credits to offset costs, promoting diversity in video programming options for viewers.

Key Provisions

• Tax Credit for Carriage (Section 45BB of the Internal Revenue Code):
• Eligible distributors (MVPDs or virtual MVPDs) can claim a credit for each qualifying agreement to carry independent programmers' linear video streams (e.g., live TV channels, not on-demand or user-generated content).
• The credit amount per agreement is the lesser of:
• Net license fees paid to the independent programmer, or
• $0.10 multiplied by the average number of monthly subscribers receiving the content.
• Overall annual cap: $0.30 per average monthly subscriber across all agreements.
• Qualifying agreements must involve new or expanded carriage to at least 40% of the distributor's subscriber base and include payment of a license fee.
• Qualified independent programmers are U.S.-based entities producing or distributing linear video programming, excluding publicly traded companies, large networks (offering 15+ hours weekly to 25+ affiliates in 10+ states), major TV station owners (with >3% national audience reach), or entities with significant ownership (≥5% voting stock or partnership interest) by such large players.
• Prevents double benefits: No tax deduction allowed for amounts claimed as credits.
• The credit becomes part of the general business credit under Section 38 of the tax code.

• Reporting Requirements (FCC Biennial Reports):
• The Federal Communications Commission (FCC) must submit reports to Congress every two years, starting 180 days after enactment.
• Reports cover:
• Number of qualified independent programmers with streams carried by eligible distributors and average carriage duration.
• Similar data for traditional MVPDs and virtual MVPDs separately.
• Recommendations to increase carriage of independent content.
• Allows the IRS to share anonymized tax return data with the FCC solely for preparing these reports, ensuring no identifiable taxpayer information is disclosed publicly.

• Effective Date:
• Applies to expenses paid or incurred after the date of enactment, for taxable years ending after that date.

Significant Changes to Existing Law

• Tax Code Amendments: Adds a new Section 45BB to the Internal Revenue Code, introducing a targeted business tax credit not previously available for video programming carriage. Integrates it into the existing general business credit framework (Section 38).
• FCC Reporting: Imposes new biennial reporting duties on the FCC regarding independent programmers, with no prior equivalent requirement.
• Data Disclosure: Expands Section 6103(l) of the tax code to permit limited IRS sharing of tax credit claim data with the FCC, a novel inter-agency provision for media policy oversight, while maintaining taxpayer privacy restrictions.

Potential Impacts

• Government Agencies: The IRS will administer the tax credit, potentially increasing workload for verifying claims and disclosures. The FCC gains new reporting responsibilities, which could inform future media regulations but require coordination with the IRS.
• Citizens: Viewers may benefit from more diverse programming options as incentives encourage distributors to add independent channels, potentially expanding access to niche or underrepresented content. Independent programmers could see growth in distribution, aiding smaller U.S.-based creators.
• International Relations: No direct impacts; the bill focuses on U.S.-based entities and domestic tax incentives, with no provisions affecting foreign content or trade.

Main Stakeholders Affected

• Eligible Distributors: MVPDs (e.g., cable operators, satellite providers like DirecTV) and virtual MVPDs (e.g., streaming services like YouTube TV), who can reduce tax liabilities but must meet carriage thresholds.
• Qualified Independent Programmers: Small, non-corporate U.S. producers/distributors of linear video content, who gain easier access to broader audiences via incentivized agreements.
• Government Entities: IRS (tax credit processing and data sharing), FCC (reporting and recommendations), and Congress (receiving oversight reports).
• Viewers and Subscribers: Indirectly affected as end-users potentially gaining more content choices without direct cost increases to them.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes clear definitions for "cognizable interest" (e.g., ≥5% ownership) and ties some terms to existing FCC regulations under the Telecommunications Act of 1996, ensuring consistency but potentially inviting challenges over eligibility interpretations. The tax data disclosure includes safeguards against privacy breaches, aligning with federal tax confidentiality laws.
• Constitutional: No apparent issues; the bill involves standard congressional authority over taxation (Article I, Section 8) and commerce regulation, without infringing on free speech or due process in media contexts.
• Political: Bipartisan sponsorship (from Republicans and Democrats) signals broad support for promoting media diversity and small businesses. Could influence future media policy by highlighting independent content gaps, but the tax incentive approach avoids direct regulation, reducing controversy over government intervention in programming decisions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Steube, W. Gregory [R-FL-17]

Cosponsors (19)

Rep. Bilirakis, Gus M. [R-FL-12], Rep. Panetta, Jimmy [D-CA-19], Rep. Clarke, Yvette D. [D-NY-9], Rep. Van Duyne, Beth [R-TX-24], Rep. DelBene, Suzan K. [D-WA-1], Rep. Castor, Kathy [D-FL-14], Rep. Soto, Darren [D-FL-9], Rep. Kelly, Robin L. [D-IL-2], Rep. Thanedar, Shri [D-MI-13], Rep. Espaillat, Adriano [D-NY-13], Rep. Veasey, Marc A. [D-TX-33], Rep. Harshbarger, Diana [R-TN-1], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. Gimenez, Carlos A. [R-FL-28], Rep. Valadao, David G. [R-CA-22], Rep. Miller, Carol D. [R-WV-1], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Malliotakis, Nicole [R-NY-11]

Recent Actions

• 2025-03-18: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-03-18: Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-03-18: Introduced in House
• 2025-03-18: Introduced in House

Bill Versions

• Independent Programmers Tax Incentive Act — issued 2025-03-18 — PDF (9 pages)