,i #aaith ,,congress #ast ,session ,h4 ,r4 #bbcj ,,in ,,the ,,house ,,of ,,representatives ,march #ah1 #bjbe,mr4 ,steube 7for himself1 ,mr4 ,bilirakis1 ,mr4 ,panetta1 ,ms4 ,clarke of ,new ,york1 ,ms4 ,van ,duyne1 ,ms4 ,del,bene1 ,ms4 ,castor of ,florida1 ,mr4 ,soto1 ,ms4 ,kelly of ,illinois1 ,mr4 ,thanedar1 ,mr4 ,espaillat1 ,mr4 ,veasey1 ,mrs4 ,harshbarger1 ,mr4 ,carter of ,georgia1 ,mr4 ,gimenez1 and ,mr4 ,valadao7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,energy and ,commerce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide tax credits for carriage of independent programmers by certain multichannel video programming distributors4 #a4 ,short title ,this ,act may be cited as the ,independent ,programmers ,tax ,incentive ,act4 #b4 ,carriage of ,independent ,programmers ,tax ,credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de;,,bb4 ,carriage of ,independent ,programmers ,credit 7a7 ,allowance of credit ,for purposes of section #ch1 in the case of any eligible distributor1 the carriage of independent programmers credit determined under this section for the taxable year is1 with respect to each agreement for qualifying carriage entered into by such eligible distributor1 the lesser of-- 7#a7 the net license fees paid or incurred by such eligible distributor during such taxable year under such agreement for qualifying carriage1 or 7#b7 the product of #j4aj multiplied by the average number of monthly subscribers 7for calendar months during such taxable year7 to which carriage is provided under such agreement4 7b7 ,maximum credit ,the credit determined under this section with respect to any eligible distributor for any taxable year shall not exceed the product of #j4cj multiplied by the average number of monthly subscribers 7for calendar months during such taxable year74 7c7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,eligible distributor ,the term eligible distributor means any person which is either-- 7,a7 engaged in the trade or business of being a multichannel video programming distributor1 or 7,b7 a virtual multichannel video programming distributor4 7#b7 ,multichannel video programming distributor ,the term multichannel video programming distributor means an entity engaged in the business of making available for purchase1 by subscribers or customers1 multiple channels of video programming4 ,such entities include1 but are not limited to1 a cable operator1 a ,,brs_/,,ebs provider1 a direct broadcast satellite service1 a television receive-only satellite program distributor1 and a satellite master antenna television system operator1 as well as buying groups or agents of all such entities4 7#c7 ,virtual multichannel video programming distributor ,the term virtual multichannel video programming distributor means any person engaged in the trade or business of making available directly to the end user1 by means of the ,internet or other ,,ip-based transmission path1 multiple streams of linear video programming4 7#d7 ,video programming ,the term video programming means programming provided by1 or generally considered comparable to programming provided by1 a television broadcast station1 but not including consumer-generated media4 7#e7 ,agreement for qualifying carriage ,the term agreement for qualifying carriage means a written agreement between an eligible distributor and a qualified independent programmer that provides for new or expanded carriage of one or more linear video programming streams of a qualified independent programmer to at least #dj percent of the eligible distributor's subscriber base in aggregate for such linear video programming streams and which requires the eligible distributor to pay a license fee to the qualified independent programmer4 7#f7 ,qualified independent programmer 7,a7 ,in general ,the term qualified independent programmer means a ,united ,states-based person engaged in the production1 creation1 or wholesale distribution of linear video programming if-- 7i7 such person is not a publicly traded company1 multichannel video programming distributor1 virtual multichannel video programming distributor1 network1 or television station company1 and 7ii7 no publicly traded company1 multichannel video programming distributor1 virtual multichannel video programming distributor1 network1 or television station company has a cognizable interest in such person4 7,b7 ,network ,the term network means an entity that offers programming on a regular basis for #ae or more hours per week to at least #be affiliates in #aj or more ,states4 7,c7 ,television station company ,the term television station company means any person if1 after taking into account the audience reach of all television stations under common control with such person1 such person has a national audience reach in excess of #c percent4 ,terms used in this subparagraph which are also used in section #bjb7;c7 of the ,telecommunications ,act of #aiif 7or in the regulations issued pursuant to such section7 shall have the same meaning as when used in such section 7or such regulations74 7,d7 ,cognizable interest ,the term cognizable interest means partnership and direct ownership interests and any voting stock interest amounting to #e percent or more of the outstanding voting stock of an entity4 7#g7 ,license fees ,except as otherwise provided by the ,secretary1 in the case of an agreement for qualifying carriage which is net effective rate positive for the qualified independent programmer1 the appropriate amount shall be treated as a license fee paid by the eligible distributor to the qualified independent programmer4 7d7 ,denial of double benefit ,no deduction shall be allowed under this chapter for any amount to the extent that such amount is allowed as a credit under this section4 4 7b7 ,credit made part of general business credit ,subsection 7b7 of section #ch of such ,code is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the carriage of independent programmers credit determined under section #de;,,bb4 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de;,,bb4 ,carriage of ,independent ,programmers ,credit4 4 7d7 ,effective date ,the amendments made by this section shall apply to expenses paid or incurred after the date of the enactment of this ,act1 in taxable years ending after such date4 #c4 ,biennial report by ,,fcc to ,congress 7a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 and not less frequently than every #b years thereafter1 the ,federal ,communications ,commission shall submit to ,congress a report that-- 7#a7 states the number of qualified independent programmers that have a linear video programming stream that is distributed to subscribers of one or more eligible distributors and the average length of time for which such a linear video programming stream has been so distributed by the same eligible distributor2 7#b7 states the number of qualified independent programmers that have a linear video programming stream that is distributed to subscribers of one or more multichannel video programming distributors and the average length of time for which such a linear video programming stream has been so distributed by the same multichannel video programming distributor2 7#c7 states the number of qualified independent programmers that have a linear video programming stream that is distributed to subscribers of one or more virtual multichannel video programming distributors and the average length of time for which such a linear video programming stream has been so distributed by the same virtual multichannel video programming distributor2 and 7#d7 contains recommendations for how to increase the number of qualified independent programmers described in paragraph 7#a74 7b7 ,disclosure of tax return information ,section #fajc7l7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#bc7 ,disclosure of return information to ,federal ,communications ,commission for biennial reports to ,congress 7,a7 ,in general ,the ,secretary shall1 upon written request from the ,federal ,communications ,commission1 disclose to officers and employees of such ,commission such return information of taxpayers claiming the credit allowable under section #de;,,bb as such ,commission determines necessary to prepare the reports required under section #b of the ,independent ,programmers ,tax ,incentive ,act4 7,b7 ,restriction on disclosure ,return information disclosed under subparagraph 7,a7 may be used by officers and employees of the ,federal ,communications ,commission for the purposes of1 and to the extent necessary in1 preparing the reports required under section #b of the ,independent ,programmers ,tax ,incentive ,act4 ,such reports shall not include return information which is identifiable as being with respect to a particular taxpayer4 4