At press time, it wasn’t known whether Rep. Jerry Weller (R-Ill.) and his colleagues would opt to introduce a bill in Congress that calls for providing post facilities with an investment tax credit. The bill aims to help make the Federal Communications Commission (FCC)-mandated transition to DTV, including HDTV, more economically feasible. Weller is a co-sponsor of the proposed measure. But a determination still had to be made about prospects for presenting the bill in this soon-to-conclude congressional session.
Meanwhile, the Association of Imaging Technology and Sound (ITS)—the driving industry force behind the measure—was continuing to try to drum up support. As SHOOT went to press, the ITS had lined up three additional co-sponsors: Rep. William J. Coyne (D-Penn.), Rep. Jim Ramstad (R-Minn) and Rep. Carolyn B. Maloney (D-N.Y.). They join a field of original co-sponsors comprising Weller as well as Rep. Mark Foley (R-Fla.), Rep. Xavier Becerra (D-Calif.) and Rep. Robert Matsui (D-Calif.).
The ITS hopes to garner a total of 20 co-sponsors. As earlier reported (SHOOT, 9/15, p. 1), the ITS organized a grass-roots industry campaign, urging its members to contact their local elected representatives via phone, letter, fax and/or e-mail. The ITS provided its rank-and-file with a letter—expressing support for the bill—that can be sent to members of Congress. The ITS also outlined talking points, to help facility executives and artisans articulate the industry case for a tax credit during phone conversations with local congressional officials.
According to ITS president Terry Rainey, this campaign helped to garner the co-sponsorship signatures of Reps. Coyne, Ramstad and Maloney. Additionally, co-sponsors Weller, Foley, Becerra and Matsui had earlier sent out letters to all of their congressional colleagues, asking them to back the legislation.
If introduced this month in the U.S. House of Representatives, the measure would likely have to take the form of an amendment to a larger tax bill. Admittedly, the industry has a tough row to hoe. Two major pieces of tax legislation have already been vetoed by President Clinton. But the fact is that while a tax credit would be significant for the post industry, its impact would be minimal as compared to the sweeping tax reform bills that were vetoed. The ITS would like to see the investment tax credit packaged with other similar minimal-impact proposals, thus enhancing its chances to gain the go-ahead in D.C.
Nonetheless, even if the bill isn’t introduced or fails to gain passage in the current session of Congress, or ultimately is vetoed, the behind-the-scenes efforts of the ITS will still prove invaluable. For one, the work done thus far lays the foundation for the reintroduction of a progressive tax credit proposal in the next session of Congress, with improved prospects for passage. Additionally, legislators receptive to the industry’s argument can also consider other means to ease the financial burden of the DTV transition. These include a change in equipment depreciation schedules, and a loan program that could involve the Small Business Administration.
Most importantly, the ITS has developed relationships with assorted key members of Congress, such as Rep. W.J. "Billy" Tauzin (R-La.). Tauzin chairs the House of Representatives’ Telecommunications Subcommittee, which oversees the FCC. Rainey testified before that subcommittee in July, stating the industry’s case for an investment tax credit and/or other forms of economic relief.
Indeed, the ITS has become well connected on Capitol Hill. And in the process of lobbying and testifying, the trade organization has helped to make members of Congress more familiar with the post industry, its needs and the pivotal role it will play in the digital communications era.
