Relating to the computation of the cost of goods sold by television and radio broadcasters for purposes of the franchise tax.

Contracts

• Asset Purchase Agreements (APAs): When acquiring stations, ensure "broadcast rights" and "licensing rights" are clearly valued and itemized. This statute explicitly protects the amortization of these specific assets as COGS, potentially improving the tax efficiency of the acquisition.
• Tax Engagement Letters: Update agreements with external CPA firms to ensure they are applying SB263 logic to current filings and reviewing open tax years for potential refund claims.

Hiring/Training

• Finance Team Training: Staff preparing the "Cost of Goods Sold" worksheet (Form 05-158) must be trained to distinguish between *general* depreciation (not COGS) and *production/broadcast* depreciation (deductible COGS under this law).

Reporting & Record-Keeping

• FCC License Verification: You must maintain a valid copy of your FCC license under 47 C.F.R. Part 73 or 74 in your permanent tax file. This is the statutory trigger for eligibility.
• Chart of Accounts: Restructure your general ledger to segregate "Broadcast Rights Fees" (e.g., syndication, sports rights, music licensing) from general administrative expenses. The audit trail must clearly link these expenses to the "acquisition, production, or use" of broadcast property.

Fees & Costs

• No New Fees: There are no new state fees associated with this filing.
• Budget Impact: Positive. This secures a potentially aggressive deduction strategy, preventing future tax liabilities and penalties associated with COGS disallowance.