Clyburn Pushes for Minority Tax Credit, Incubators
Commissioner Mignon Clyburn and FCC Republicans aren’t likely to agree all the time but she looks forward to the new “trio” making the most of its opportunities, she said in Q&A at NAB Wednesday. In the speech, Clyburn said industry and Congress should do more to promote ownership diversity, and backed the return of the minority tax credit. “The status quo is not working,” Clyburn said. “None of us is satisfied.” Though she hasn’t met with Chairman Ajit Pai to discuss the FCC's new direction, she expects such a meeting to occur soon, she said.
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Critics of broadcast ownership rules should focus on improving ownership diversity and removing regulations, Clyburn said. Opponents of ownership rules generally back removing only what they say are “outdated” barriers to consolidation, she said. Industry and opponents of ownership rules should also be working on plans to diversify broadcasting, she said. “What I am still waiting to hear is how we could work together to move the needle” on diversity, Clyburn said. Any changes to ownership rules must be coupled with acknowledgement of the public interest and the importance of viewpoint diversity, she said. “Accepting the status quo by pushing for no rules at all is quite frankly unpalatable to me.”
The best way to diversify broadcast ownership is to restore the minority tax credit, Clyburn said. The tax credit, which reduced the taxes paid by companies that sold licenses to minority owners, led to a massive increase in minority broadcast ownership, she said. Without the incentive, it's unlikely minority ownership will ever be where it belongs, Clyburn said. Since restoring the credit would require legislative action, attendees should lobby Congress for it to be brought back in some form, she said. “I remain convinced it has bipartisan support,” Clyburn said. “We should not be shy about pushing for an update.”
Clyburn said industry also should act to increase broadcast diversity. It's harder for a would-be owner to obtain financing without prior broadcast ownership experience, she said. She praised education programs run by the NAB Education Foundation, where she spoke, but said the FCC should establish an incubator program to encourage industry to be more proactive. Such a program would grant waivers or regulatory relief to companies that provide financial or technical assistance to fledgling minority broadcasters, Clyburn said. The new broadcast standard, ATSC 3.0, which is awaiting FCC approval, could also offer opportunities for increasing broadcast diversity, “if it’s done right,” she said.