H.R. 3879 — Broadcast VOICES Act

This section defines three terms for purposes of the Act: (1) broadcast station, which has the meaning given that term in 47 U.S.C. 153; (2) Commission, meaning the Federal Communications Commission; and (3) owned by socially disadvantaged individuals, which has the meaning given that term in section 346(a) of the Communications Act of 1934, as added by section 5(a)(1).

This section states congressional findings concerning the Federal Communications Commission's (FCC) mission to promote diversity of ownership and viewpoints in broadcasting, the need to improve data collection and make recommendations to Congress to increase minority- and women-owned broadcast stations, low current ownership levels (e.g., of nearly 1,760 full-power commercial TV stations, less than 6% are women-owned and less than 4% minority-owned; for full-power commercial FM radio stations, women own approximately 9% and minorities less than 3%), and the FCC's issuance of 287 radio and 40 television minority tax certificates from 1978 to 1995.

This section directs the Federal Communications Commission (FCC) to submit two biennial reports to Congress on broadcast station ownership by socially disadvantaged individuals, beginning not later than 180 days after enactment of this Act and every two years thereafter. The first report provides recommendations for increasing the total number and value of such stations; the second report identifies the total number of such stations, based on data reported to the FCC on Form 323.

This section establishes a Federal Communications Commission (FCC) tax certificate program under new Communications Act §346 for broadcast station sales that result in or preserve ownership and control by socially disadvantaged individuals (i.e., women or individuals subjected to racial or ethnic prejudice or cultural bias, defined as >50% ownership and management control) or sales by investors in such stations, with certificates enabling nonrecognition of gain or loss under new IRC §1071. FCC rules, due within one year of enactment, must (1) limit qualifying sale values to no more than $50 million, (2) require a minimum 2-3 year post-sale holding period with buyer certifications of compliance every 180 days (noncompliance reported to IRS and Congress), (3) impose annual limits on the number or value of sales per seller, and (4) ensure socially disadvantaged individuals' management participation. This section further directs the FCC to submit an annual report to Congress on certificates issued; a report within six years assessing program expansion to other FCC-regulated entities; and, within two years, a report (with examination initiated within 60 days) on any nexus between broadcast ownership diversity (including by minorities or women) and viewpoint diversity on air.

This section establishes a new general business tax credit (under new IRC §45BB) equal to the fair market value of any broadcast station or interest therein contributed in a qualified contribution during the taxable year. A qualified contribution is a gift to a §501(c)(3) organization certified by the FCC as having a charitable purpose of training socially disadvantaged individuals (as defined in §346(a)(2) of the Communications Act of 1934) in broadcast station management and operation, provided the recipient holds the property for at least two years. No charitable deduction is allowed under IRC §170 for any contribution eligible for this credit, with the amendments applying to contributions made in taxable years beginning after enactment.