Senator John McCain (R-AZ) has introduced proposed federal legislation that would use tax incentives to encourage more diverse ownership of telecommunications outlets, including television and radio broadcast stations.
This legislation would give sellers of telecommunications businesses—including broadcast stations—a tax deferral when small companies buy their assets for cash. It would also encourage the entry of new players and the growth of existing small businesses by enabling the seller of a telecom business to claim a tax deferral on capital gains if it invests the proceeds of that sale in purchasing an interest in an eligible small telecom or media business.
McCain, ranking Republican of the Committee on Commerce, Science, and Transportation, introduced the Telecommunications Ownership Diversification Act of 2002, S. 3112, last week. The legislation broadly defines telecommunications businesses eligible for capital gains tax deferral to include not only radio, broadcast TV, DBS and cable TV, but also wireline and wireless telephone service providers and resellers.
For more info, visit: http://mccain.senate.gov/index.htm.