Viacom Deal Could Hit Snag If Law Changes : TV: Congress is considering a tax revision that could cost the firm hundreds of millions in its cable systems sale.

Viacom Inc.’s plan to sell its cable systems to a minority-controlled partnership could hit a snag if Congress carries through on proposals to change a longstanding tax break.

The estimated $2.3-billion deal with entrepreneur Frank Washington, who is black, would create the largest minority-owned cable TV system in the country.

House Ways and Means Committee Chairman Bill Archer (R-Tex.) said he is considering retroactive changes or even repealing the Federal Communications Commission’s tax certificate program. That program is designed to bolster minority ownership of communications outlets. Viacom is expected to defer anywhere from $280 million to $400 million in capital gains taxes under the program.

Archer’s proposal “is not aimed at the Viacom deal,” committee spokesman Ari Fleischer said Wednesday.

The high-profile Viacom deal “put the tax certificate program on our radar screen, but Archer’s interest is much broader than that,” Fleischer said.

Archer said Tuesday that legislative changes to the program could affect certificates issued by the FCC on or after Jan. 17--potentially affecting the Viacom deal.

People involved in the Viacom deal said there are no immediate plans to restructure the transaction, which they said has received support on Capitol Hill.

Changes in the program would require congressional approval and would take some time.

Fleischer said Archer is interested in the program’s effect on tax revenues and also in whether it is an effective way to encourage minority ownership. A hearing is set for Jan. 27.

Supporters say the program does not deprive the Treasury of tax revenues. Even so, it has been the subject of abuse and controversy over the years.