1. Short title This Act may be cited as the Independent Programmers Tax Incentive Act . 2. Carriage of Independent Programmers Tax Credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45BB. Carriage of Independent Programmers Credit (a) Allowance of credit For purposes of section 38, in the case of any eligible distributor, the carriage of independent programmers credit determined under this section for the taxable year is, with respect to each agreement for qualifying carriage entered into by such eligible distributor, the lesser of— (1) the net license fees paid or incurred by such eligible distributor during such taxable year under such agreement for qualifying carriage, or (2) the product of $0.10 multiplied by the average number of monthly subscribers (for calendar months during such taxable year) to which carriage is provided under such agreement. (b) Maximum credit The credit determined under this section with respect to any eligible distributor for any taxable year shall not exceed the product of $0.30 multiplied by the average number of monthly subscribers (for calendar months during such taxable year). (c) Definitions and special rules For purposes of this section— (1) Eligible distributor The term eligible distributor means any person which is either— (A) engaged in the trade or business of being a multichannel video programming distributor, or (B) a virtual multichannel video programming distributor. (2) Multichannel video programming distributor The term multichannel video programming distributor has the meaning given such term in section 76.1000(e) of title 47 of the Code of Federal Regulations. (3) Virtual multichannel video programming distributor The term virtual multichannel video programming distributor means any person engaged in the trade or business of making available directly to the end user, by means of the Internet or other IP-based transmission path, multiple streams of