LPTV Floats Tax-Credits-For-Spectrum Plan

Excluded from the Federal Communications Commission's incentive auction, a group of Low Power Television (LPTV) broadcasters is proposing that buyers of LPTV stations who turn over the spectrum to the FCC for unlicensed use be granted tax credits in the same amount or twice the amount as the stations' purchase prices. Participation in the LPTV Spectrum Clearing Tax Credit program would be voluntary, according to a seven-page outline of the plan floated on Capitol Hill. "Almost all are small businesses, and many are diverse multicultural owners," the outline says. "The tax credits could be the only way to unlock value from their spectrum investments in most situations."

According to the outline, the tax credits could be used to reduce ordinary taxes of buyers or taxes of businesses that further the FCC goal of fostering economic activity in unlicensed spectrum. Normally, tax credits are issued at a 1:1 ratio -- LPTV buyers would get a $1 credit for every dollar they spend on the spectrum, the outlines says. However, the program would be such a boon to the economy, buyers might be able to get $2 for each $1 spent.