< Back to S. 3229 (106th Congress, 1999–2000)

Text of A bill to amend the Internal Revenue Code of 1986 to allow a tax credit for the cost of certain ...

...cost of certain equipment used to convert public television broadcasting from analog to digital transmission.

This bill was introduced on October 24, 2000, in a previous session of Congress, but was not enacted. The text of the bill below is as of Oct 24, 2000 (Introduced).

Source: GPO

S 3229 IS

106th CONGRESS

2d Session

S. 3229

To amend the Internal Revenue Code of 1986 to allow a tax credit for the cost of certain equipment used to convert public television broadcasting from analog to digital transmission.

IN THE SENATE OF THE UNITED STATES

October 24 (legislative day, SEPTEMBER 22), 2000

Mr. KERREY introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Internal Revenue Code of 1986 to allow a tax credit for the cost of certain equipment used to convert public television broadcasting from analog to digital transmission.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. TAX CREDIT FOR PUBLIC TELEVISION DIGITAL TRANSMISSION CONVERSIONS.

    (a) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to general business credits) is amended by adding at the end the following:

‘SEC. 45D. CREDIT FOR PUBLIC TELEVISION DIGITAL TRANSMISSION CONVERSIONS.

    ‘(a) IN GENERAL- For purposes of section 38, the amount of the public television digital transmission conversion credit determined under this section for an eligible taxpayer for each taxable year in the credit period with respect to an eligible public television conversion project shall be an amount equal to 1/6 of the qualified conversion equipment costs in connection with such project.

    ‘(b) ELIGIBLE TAXPAYER; ELIGIBLE PUBLIC TELEVISION CONVERSION PROJECT- For purposes of this section--

      ‘(1) ELIGIBLE TAXPAYER- The term ‘eligible taxpayer’ means any limited partnership or limited liability company--

        ‘(A) the sole purpose of which is to acquire qualified conversion equipment for lease at nominal rent payments to a public telecommunications entity in connection with 1 or more eligible public television conversion projects,

        ‘(B) the general partner, general partners, or managers of which consist solely of 1 or more qualified public broadcasting organizations, and

        ‘(C) which makes an irrevocable election (binding on the eligible taxpayer and all successors in interest as lessor under the qualified conversion equipment lease) not to claim depreciation with respect to such qualified conversion equipment.

      ‘(2) ELIGIBLE PUBLIC TELEVISION CONVERSION PROJECT- The term ‘eligible public television conversion project’ means any project to convert the television broadcasting of a public telecommunications entity from analog to digital transmission.

    ‘(c) QUALIFIED CONVERSION EQUIPMENT COSTS- For purposes of this section--

      ‘(1) IN GENERAL- The term ‘qualified conversion equipment costs’ for a taxable year means the aggregate fair market value of qualified conversion equipment acquired or constructed by an eligible taxpayer at the direction of, and in full compliance with such bidding requirements as may be applicable to, a qualified public broadcasting organization.

      ‘(2) QUALIFIED CONVERSION EQUIPMENT- The term ‘qualified conversion equipment’ means property used by a qualified public broadcasting organization under a lease with nominal rent payments with an eligible taxpayer in an eligible public television conversion project, including--

        ‘(A) transmission towers,

        ‘(B) transmission equipment,

        ‘(C) production equipment, including cameras, recorders, software and editing systems,

        ‘(D) retransmission equipment,

        ‘(E) transformers, and

        ‘(F) such other property (other than land) necessarily related to the property described in subparagraphs (A) through (E) or used for the repair or maintenance of such property.

    ‘(d) OTHER DEFINITIONS- For purposes of this section--

      ‘(1) PUBLIC TELECOMMUNICATIONS ENTITY- The term ‘public telecommunications entity’ has the meaning given such term by section 397(12) of the Communications Act of 1934 (47 U.S.C. 397(12)).

      ‘(2) CREDIT PERIOD- The term ‘credit period’ means, with respect to any eligible public television conversion project, the period of 6 taxable years beginning with the first taxable year the qualified conversion equipment costs of the eligible taxpayer in connection with such project are taken into account.

      ‘(3) QUALIFIED PUBLIC BROADCASTING ORGANIZATION- The term ‘qualified public broadcasting organization’ means--

        ‘(A) a public telecommunications entity, or

        ‘(B) an organization described in section 501(c)(3) and exempt from tax under section 501(a) and whose exempt purposes include the representation, promotion, or support of public television stations.

    ‘(e) SPECIAL RULE- A credit shall be allowed under subsection (a) notwithstanding the provisions of section 183 (activities not engaged in for profit), section 168(h) (tax-exempt use property), and any provision of law which would limit the allowance of the credit because of the terms of any lease or purchase option between an eligible taxpayer and a public telecommunications entity.

    ‘(f) REGULATIONS- The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations providing for the ratable recapture of the credit if during the credit period property qualifying for the credit under this section is disposed of or otherwise ceases to be qualified conversion equipment.’.

    (b) INCLUSION IN GENERAL BUSINESS CREDIT-

      (1) IN GENERAL- Section 38(b) of the Internal Revenue Code of 1986 (relating to current year business credit) is amended by striking ‘plus’ at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ‘, plus’, and by adding at the end the following:

      ‘(13) the public television digital transmission conversion credit determined under section 45D(a).’.

      (2) TRANSITION RULE- Section 39(d) of such Code (relating to transitional rules) is amended by adding at the end the following:

      ‘(9) NO CARRYBACK OF SECTION 45D CREDIT BEFORE ENACTMENT- No portion of the unused business credit for any taxable year which is attributable to the public television digital transmission conversion credit determined under section 45D may be carried back to a taxable year ending before the date of the enactment of section 45D.’.

    (c) CONFORMING AMENDMENT- The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

‘Sec. 45D. Credit for public television digital transmission conversions.’.

    (d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.