New Bill Seeks To Revive Tax Incentives To Diversify Broadcast Ownership.

There is a fresh push to revive the minority tax certificate and boost the number of women and minority owners of radio and television stations. Rep. Steven Horsford (D-NV) has reintroduced the Broadcast VOICES (Varied Ownership Incentives for Community Expanded Service) Act (H. R. 3879), which would offer tax credits for broadcast owners who donate their stations to train individuals new to broadcast station management and operations, with the tax break equal to the fair market value of the station that turn over to the newcomer.

“Diverse ownership in broadcasting helps amplify voices, viewpoints and perspectives that our society has historically silenced,” Horsford said. “The minority tax certificate program’s nearly 20-year success record diversifying broadcast ownership speaks for itself — not just in effective tax incentives, but also in creating economic opportunities and empowering disadvantaged communities.”

First established in 1978, the minority tax certificate program provided a tax incentive to those who sold their majority interest in a broadcast station to diverse individuals. During the tax certificate’s previous 17-year existence, it helped minority radio ownership rise from 60 radio and TV stations in 1978 to 288 radio and 43 TV stations by the time Congress pulled the plug in 1995, according to FCC data. That was accomplished through the issuing of 287 tax certificates to radio stations and 40 certificates to television stations. Despite this success, Congress repealed the program in 1995 amid complaints of abuse.

To help address those concerns, the Broadcast VOICES bill would require the Federal Communications Commission to file annual reports to Congress on the annual sales for which certificates have been issued. The FCC would also need to report on ways to increase minority and women-controlled broadcast ownership. That includes examining whether there is a nexus between diversity of ownership and diversity of the viewpoints broadcast by stations.

In the years since the tax breaks disappeared, the number of minority- and women-owned stations has grown little. A report released by the FCC in 2021 found that among commercial radio stations, women owned only nine percent of FMs, and minorities owned fewer than three percent of those stations.

The Broadcast VOICES Act has been endorsed by the National Association of Broadcasters. It sees the minority tax certificate as part of the industry’s commitment to access-to-capital initiatives that open the door for more radio and television station ownership opportunities.

“A reinstated tax certificate program is a proven tool to help achieve that goal,” NAB President Curtis LeGeyt said in a statement. “Local stations are trusted, reliable and a cornerstone of their communities because they reflect the audiences they serve.”

All 50 state broadcast associations, as well as trade groups representing stations in the District of Columbia and Puerto Rico, have previously said they too are believers the tax break would help increase ownership diversity in radio and television. Nevada Broadcasters Association President Mitch Fox is backing the latest effort.

“We believe this legislative initiative will become a vital part of the broadcasting ecosystem by fostering inclusivity and diversity among our local stations,” Fox said. “The Broadcast VOICES Act would help ensure station ownership reflects broad backgrounds and speaks to all audiences.”

Horsford’s bill does not yet have a companion bill in the Senate and his effort is likely facing an uphill climb. Earlier attempts to revive the minority tax certificate have failed to gain traction in Congress for more than a decade, regardless of which party was in control. The current Congress has been looking for ways to address the ballooning national debt, and a program that reduces tax revenue may be even less palatable in the current climate.

Rep. Emanuel Cleaver (D-MO) is one of the first lawmakers to get onboard, saying women- and minority-owned broadcasters often “uplift the voices of communities that are far too often overlooked” by others. “Kansas City is proud to be home of the oldest Black-owned radio broadcast company in the U.S., serving as a prime example of the quality and community connection that comes with minority-owned media outlets,” Cleaver said.