Small businesses with fewer than 50 employees would receive a tax credit covering 80% of what they spend advertising in local newspapers or FCC-licensed broadcast stations in their first year (up to $5,000), and 50% in subsequent years (up to $2,500 per year). Separately, local newspaper publishers would receive a payroll tax credit equal to 50% of journalist wages in the first year, dropping to 30% after four quarters, on wages up to $12,500 per journalist per quarter and covering up to 1,500 journalists per outlet. Both credits expire five years after enactment. Qualifying local newspapers must employ at least one full-time local journalist, have fewer than 750 employees, and may not be controlled by political or tax-exempt advocacy organizations.
Corporate Benefits
- Payroll tax credit for local newspaper employers — covers 50% then 30% of journalist wages up to $12,500/quarter per journalist for up to 1,500 journalists
- Advertising tax credit for small businesses — offsets up to $5,000 in local media ad spending in year one and $2,500 in each subsequent year
Transparency & Accountability
- Local news journalism employment incentive — payroll credit is conditioned on outlets employing working local journalists, tying subsidy to active news production
Congressional Summary
Community News and Small Business Support ActThis bill establishes a temporary business tax credit for expenses incurred by an eligible small business to advertise in local media. The bill also establishes a temporary refundable tax credit for a percentage of wages paid by an eligible employer to local news journalists. (Limitations apply.)Under the bill, an eligible small business (a business with an average of fewer than 50 employees) may claim a tax credit for (1) 80% of local media advertising expenses, up to a maximum of $5,000, in the first year of the tax credit; and (2) 50% of such expenses, up to a maximum of $2,500, in the subsequent four years. (Other conditions and limitations may apply.)The bill also allows an eligible employer to claim each calendar quarter a refundable tax credit against Medicare payroll taxes for (1) 50% of wages paid to a local news journalist in the first four calendar quarters of the tax credit, and (2) 30% of such wages paid in each calendar quarter in the subsequent four years. However, under the bill, the tax credit for local news journalist wages is limited to $12,500 in wages paid per local news journalist per quarter and the wages of no more than 1,500 local news journalist may be included. Further, the tax credit may not be claimed for wages for which certain other tax credits (e.g., the tax credit for paid family and medical leave) are claimed. (Other conditions and limitations may apply.)
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-02-27
- Date Added
- 2026-05-05
- Source
- Congress.gov →
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