Fifty State Broadcast Associations Ask Congress To Keep Advertising Tax Deductions
November 14, 2013 at 3:54 AM (PT)
Earlier this week (NET NEWS 11/12), ALL ACCESS reported that Rep. DAVE CAMP (R-MI), chairman of the House Ways and Means committee, was proposing watering down the advertising tax deduction. Multiple sources told ADAGE the move could cost advertisers millions and reduce revenue for ad-supported media, has been written into a working draft of a tax reform bill.
Now, the NATIONAL ALLIANCE OF STATE BROADCASTERS has written to Congress asking that they continue with the tradition of allowing companies to write off their advertising expenses as a normal business expense.
They write, "as you work on the enormous task of reforming this country's tax laws, we understand you are examining changes to the deductibility of advertising. As advertising is the life blood for local radio and television stations, any change to deductibility would deal an enormous financial blow to this country's broadcasters."
They note, "advertising is the primary source of revenue for most broadcasters, and for some it is the only source of revenue. For instance, local radio stations currently receive 96% of their revenues from advertising and television stations receive 94%."