A new bill presented to Congress would give small businesses a tax credit for placing advertising with local newspapers, television, and radio stations.
The Community News and Small Business Support Act was introduced by Reps. Suzan DelBene (D-WA) and Claudia Tenney (R-NY) as a way to bring federal support to smaller news outlets.
The proposed bill would create $5,000 in tax credit for the first year and $2,500 in subsequent years for grocery stores, restaurants, and other small businesses that advertise with local news sources. The businesses must have fewer than 50 employees, and the tax credit would account for 80% of their advertising spending in the first year with radio and television stations.
Additionally, the bill would offer a payroll tax credit to news organizations of $25,000 per employee for the first year and $15,000 for each year following to retain or hire local news reporters. Local journalists would be required to dedicate 800 hours per year to local newsrooms.
The bill has received bipartisan support. In addition to being co-presented by a Republican and Democrat, the bill was co-sponsored by Reps. Brian Fitzpatrick (R-PA) and Andrew Carson (D-IN).
The tax credit was estimated to cost $1.67 billion over five years before the program expired.
