At press time, it appeared that H.R. 5497—an investment tax credit bill being lobbied for by the Association of Imaging Technology and Sound (ITS)—had stalled in the House Ways & Means Committee. The measure calls for providing post facilities with a tax credit that would make the Federal Communications Commission (FCC)-mandated transition to DTV, including HDTV, more economically feasible.
As earlier reported, Rep. Jerry Weller (R-Ill.) introduced H.R. 5497 in the House of Representatives last month (SHOOT, 10/13, p. 1). Weller is one of the original co-sponsors of the legislation.
While passage of the bill in this latest session of Congress was considered a long shot, the ITS and Weller pursued the process, reasoning that at the very least it would help to improve prospects for the proposed legislation when the Senate and the House of Representatives reconvenes in early 2001. For one, the ITS has gained bipartisan support for the bill in the House of Representatives as reflected in a lineup of co-sponsors. The ITS figures it can build on that momentum, bringing other legislators into the sponsorship fold.
Additionally, the ITS can now begin to seek out senators to enlist their support for the measure. And the retirement of House Ways & Means Committee chairman Bill Archer (R-Texas) could also boost the bill’s chances for passage. Archer has been perennially opposed to tax credit legislation.
The ITS currently has 16 co-sponsors of the bill in the House of Representatives. But one of those co-sponsors, Rep. James Rogan (R-Calif.), failed to get re-elected and will be stepping down from office.
As currently worded, the proposed R&D investment tax credit would be computed at 20 percent of a domestic post company’s current capital expenses incurred for digital post machinery and equipment—less a dollar amount equal to the facility annual average gross receipts from DTV post services during the prior four years. The intent is to encourage the domestic construction of an advanced digital post infrastructure when the current demand for such services may not justify the required expense. The measure is structured to effectively increase the threshold for tax credit qualification as the revenue generated by digital television post services grows.
Digital postproduction equipment would be defined in the context of the Advanced Television Systems Committee standards, which have been adopted by the FCC for digital TV. Among those qualifying for the proposed R&D tax credit would be digital video and audio post facilities, animation houses and post equipment rental companies.
