NEWS
	Federal Communications Commission 445 12th Street, S.W. Washington, D.C. 20554	News media information 202 / 418-0500 Fax-On-Demand 202 / 418-2830 Internet: http://www.fcc.gov TTY: 202/418-2555
	This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
	FOR IMMEDIATE RELEASE June 17, 1999 NEWS MEDIA CONTACT: Audrey Spivack at 202-418-0500
	FCC CHAIRMAN KENNARD DETAILS NEW TAX CERTIFICATE FOR THE AGE OF CONVERGENCE; URGES CONGRESS, INDUSTRY AND CONCERNED CITIZENS TO SUPPORT PROGRAM
	FCC Chairman William E. Kennard detailed a plan to open the doors of opportunity to women, minority and small-scale entrepreneurs across all communications industries. As the different communications industries converge - when phone lines carry movies, cable lines carry phone calls, and the airwaves carry both, Chairman Kennard declared, "We can and should initiate a new tax certificate program." He made these remarks today at a luncheon in New York hosted by the Citizenship Education Fund. Kennard outlined five elements of a new tax certificate program; [1] An effective tax certificate must apply not just to radio, TV and cable, but to all telecommunications businesses including wireline, wireless and satellite; [2] A useful tax certificate program should provide incentives for any small, disadvantaged business, but it should recognize that companies owned by minorities and women face unique obstacles which warrant enhanced benefits; [3] A successful program must impose limits on how many times an entrepreneur can benefit from a certificate; [4] An efficient plan needs strict standards on firms eligible to purchase licenses so that large corporations or unscrupulous dealmakers operating as fronts are not the ones to benefit from this program; and [5] A cost-effective program needs safeguards to prevent speculative ventures from indiscriminately flipping properties and to attract owners committed to building businesses that serve communities. Kennard encouraged Congress, industry and activists to support a new tax certificate. He emphasized the need to preserve this diversity of viewpoints to keep public debate lively and to keep the nation's democracy vibrant. He said, "Let's work together - business, Congress, experts, activists and citizens - to create a new tax incentive program that honors our most cherished values and creates a communications sector that is truly open to all Americans." For 17 years under the original tax certificate program, if an owner of a radio or TV station sold it to a minority, the broadcaster could defer capital gains tax. In 1995 Congress ended the program. - FCC -