Legislation that would kill an anticipated $500 million tax break for Viacom Inc. is heading to the full House and possibly the Senate, although its chances for passage are unclear.
The bill, approved Wednesday by the House Ways and Means Committee, would eliminate a Federal Communications Commission program that gives tax breaks to companies that sell broadcast and cable-TV operations to minority buyers. Viacom’s plan to sell its cable-TV systems to a minority buyer for $2.3 billion would be affected.
The measure, backed by House Republican leaders, still could be changed in the House Rules Committee or on the House floor.
Introduced Tuesday in the House, the bill came up so quickly that “the Senate hasn’t been able to put its arms around it yet,” said an aide to one of the bill’s House supporters. The bill has been referred to the Senate Finance Committee.
Viacom Class B shares closed down 50 cents at $47.37 Thursday on the American Stock Exchange.
