Local Journalism Sustainability Act

The Local Journalism Sustainability Act would create three new federal tax incentives aimed at supporting local journalism. First, individuals could claim a refundable credit for part of their local newspaper subscriptions (the Local Newspaper Subscriptions credit). Second, eligible local newspaper publishers could earn a payroll tax credit for wages paid to local news journalists (the Payroll Credit for Local News Journalists). Third, small businesses could receive an advertising credit for local newspaper and local media advertising (the Advertising in Local Newspapers and Local Media credit). The credits are designed to encourage subscriptions, employment of local journalists, and local advertising, but all credits sunset after five years. The bill also offsets the revenue cost by transferring funds to the Social Security and Disability trust funds and requires various rules and definitions to determine eligibility and scope. In short, the bill uses targeted tax incentives to bolster the economics of local newsrooms and local advertising, with separate credits for individuals, publishers, and small businesses, plus defined eligibility criteria and sunset provisions.