BIA: Stimulus bill might stimulate DTV - Broadcasting & Cable

BIA: Stimulus bill might stimulate DTV

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Television stations faced with the financial burden of converting to
digital television may find some relief in the economic-stimulus bill Congress
passed this month.

Included in the new law is a 30 percent bonus-depreciation allowance
businesses can take on all assets placed in service after Sept. 10, 2001. and
before Sept. 11, 2004, according to a report by BIA Financial Network Inc.'s
Edward Czarnecki, managing director of strategic-advisory services. That means
TV stations may find relief in tax savings if they buy equipment before 2004.

The measure might also stimulate spending on digital-TV
equipment so that TV stations can take advantage of the credit before it
expires, Czarnecki said.

Finally, the result should be an increase in overall cash flow because the
credit will lower stations' tax bills.

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