The Local Journalism Sustainability Act provides three tax incentives aimed at supporting local news outlets. First, it creates a tax credit for individuals who subscribe to local newspapers—covering 80 percent of subscription costs (up to $250) in the first year and 50 percent in subsequent years. Second, it offers a payroll tax credit to local newspaper publishers for wages paid to local news journalists, covering 50 percent of wages (capped at $12,500 per employee per quarter) for the first four quarters and 30 percent thereafter. Third, it provides a tax credit for small businesses with fewer than 50 employees that advertise in local newspapers, radio, or television stations—covering 80 percent of advertising costs (up to $5,000) in the first year and 50 percent (up to $2,500) in subsequent years. All three credits expire after five years from the bill's enactment. The legislation targets local media outlets defined as having original local news content, serving regional communities, employing at least one local journalist, and having no more than 750 employees.
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