Local Journalism Sustainability Act
Sponsored By: Representative Mannion
Introduced
Summary
New tax credits to shore up local journalism. This bill would create three temporary tax incentives: a subscription credit for individuals, a payroll credit for local news journalists, and an advertising credit for small businesses.
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- Individuals: A subscription credit would cover most of the cost of local newspaper subscriptions, paying 80% in the first year and 50% in later years, capped at $250 per year.
- Local publishers and journalists: A payroll credit would offset a share of wages for qualifying local news journalists, with 50% coverage for the first four quarters and 30% thereafter, and a per-employee per-quarter wage cap of $12,500.
- Small businesses and advertisers: Eligible small businesses (fewer than 50 full-time employees) could claim a local media advertising credit covering 80% in year one and 50% later, with annual caps of $5,000 for the first year and $2,500 thereafter.
All three incentives are limited to a five-year window and target publications that produce original local news and meet employee-size and residency rules.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Tax credit for local news subscriptions
If enacted, you would be able to claim a nonrefundable tax credit for subscriptions to qualifying local newspapers. It would cover 80% in the first year and 50% in later years, up to $250 per year. The paper would need to focus on original local news, serve your community, employ a local journalist, and have 750 or fewer employees, with a two‑year lookback for some tests. You could elect to treat some donations to qualifying nonprofit publishers as a subscription. The credit would apply to amounts in tax years beginning after enactment and would end five years after enactment.
Payroll credit for local journalist wages
If enacted, eligible local newspaper publishers could claim a refundable payroll tax credit for wages paid to local news journalists. The credit would be 50% of qualifying wages for each of the first four quarters, then 30% after, with up to $12,500 in wages counted per employee per quarter. Excess over your payroll tax for the quarter could be refunded. To qualify, substantially all receipts must come from publishing local newspapers, and a journalist must work at least 100 hours in the quarter. Wages used for certain other credits could not be double‑counted, and government employers would be ineligible. The credit would apply for five years after enactment.
Small business credit for local ads
If enacted, small businesses could get a tax credit for ads in local newspapers and on local radio or TV. The credit would be 80% of qualified ad spend in the first year (up to $5,000) and 50% in later years (up to $2,500). Your business would need to average fewer than 50 full‑time employees, and related employers would be combined for this test. You could not deduct the portion of ad costs equal to the credit. The credit would apply to amounts in tax years beginning after enactment and would end five years after enactment.
Keeps Social Security funding whole
If enacted, the government would transfer money from the general fund to Social Security’s retirement and disability trust funds to offset payroll tax credits for publishers. Transfers would match the lost revenue and be timed to mimic normal flows. This aims to keep Social Security funding the same as if the credit did not exist.
Sponsors & CoSponsors
Sponsor
Mannion
NY • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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