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NAB Supports Bringing Back Tax Certificate Program

NAB Supports Bringing Back Tax Certificate Program

NAB supports bringing back a broadcast tax incentive program and urges the commission to repeal or at least narrow its equity/debt plus attribution rule, which the association says discourages investment by established broadcasters in new entrants. Until it was killed in 1995 for alleged mismanagement, the incentive program gave tax breaks to station or group owners that sold facilities to minorities and women.
NAB supports a bill introduced by Commerce Committee Chairman John McCain, R-Ariz., to reinstate a program similar to the defunct minority tax certificate program.
Under the equity/debt plus attribution rule, the holder of a financial interest of more than 33% of the total assets of a licensee has an attributable interest in that licensee if the older is a major program supplier to that licensee or in the same market and subject to the multiple ownership rules. NAB believes this rule makes it harder for small businesses and minorities to gain access to capital by discouraging existing broadcasters from investing in new entrants when such investments are attributable.