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NABOB and Aide to Bill Sponsor Push for Minority Tax Certificate

A bill that would restore the minority tax certificate and require the FCC collect data on broadcast ownership diversity could be the industry's answer to the 3rd U.S. Circuit Court of Appeals chronic issue with FCC ownership rules (see 1909250064),…

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said National Association of Black Owned Broadcasters President Jim Winston at the group's conference Wednesday. “The tax certificate can develop the record the court says it wants.” Along with creating a tax credit for broadcasters that sell stations to minorities and women, the Expanding Broadcast Ownership Opportunities Act (see 1704120027) would require the FCC report to Congress on ways to increase viewpoint diversity, said Timothy Graham, legislative counsel to Rep. G.K. Butterfield, D-North Carolina. Butterfield and Rep. Yvette Clarke, D-New York, are sponsors. The bill is HR-3957and the Senate version is S-2433. NAB President Gordon Smith and both Democratic FCC commissioners endorsed the bill, said Graham. Broadcast industry officials said a renewed tax credit is likely to be struck down on constitutional grounds as the previous one was, but Graham said the certificate proposed in the bill will be able to survive legal challenge. “We believe it's narrowly tailored,” he said. Fear the bill will face a court challenge shouldn't stop Congress from pursuing it, he said. Graham said there has been FCC “pushback” on the issue. The agency previously rejected proposals from its own Advisory Committee on Diversity and Digital Empowerment that the agency support the minority tax credit as part of an incubator program.