Budget Bill Contains Tax Breaks for Media Companies

The new budget/tax package hammered out by Congress extends tax breaks that cable operators say have helped them invest in broadband buildouts, as well as a break for TV and film producers and a tax credit for research and development. CenturyLink, for one, had pressed House speaker Paul Ryan (R-WI) and others in leadership not to let the accelerated and bonus depreciation provisions in the tax law expire Dec 31. They were adopted to goose the economy during the Great Recession, but were extended for two more years in 2013, when they were initially to have sunset.

According to a website dedicated to the tax issue, the 50 percent depreciation bonus helps businesses cut their tax bills on new equipment purchases by allowing them to write off more of the cost. CenturyLink said the provisions have helped the company invest billions of dollars to launch a gigabit network and that it continues to invest hundreds of millions in residential speed upgrades, fiber-to-tower, investments that would have slowed if the tax break were not extended. According to the budget bill, that bonus depreciation will be extended through 2019, though it ramps down to a 40 percent bonus in 2018 and 30 percent in 2019.