Hometown news, unlike national media, is non-partisan and fundamental to the fabric of our local communities.However, local newspapers, like other local businesses, are at a crossroad and continue to face significant economic challenges. On average two newspapers are closing each week.
The Act allows local newspapers to maintain newsroom staff through a series of payroll tax credits, including:
·A five-year refundable tax credit is available to local newspapers and other local media to use for the compensation of journalists. The credit may be used on compensation up to $50,000 a year.
·The credit covers 50% of compensation, up to $25,000, in the first year and 30% of compensation, up to $50,000, in the subsequent four years.
·A local newspaper may claim up to $25,000 per journalist in the first year and up to $15,000 per journalist per year in the next four years.
The Act allows businesses that invest in local newspaper advertising a non-refundable tax credit based on their advertising investment. The more they advertise, the stronger their business.
The Community News & Small Business Support Act is a win-win for local communities. More local reporting means more access to hometown news citizens rely on. And stronger newspapers mean stronger advertising vehicles for local businesses.
For this purpose, a LOCAL NEWS JOURNALIST is defined as any individual who regularly gathers, prepares, produces, collects, edits, photographs, records, directs the recording of, writes, presents or reports news or information that concerns local events or other matters of local public interest.
A LOCAL NEWSPAPER is defined as any print or digital publication if the primary content of such publication is original content derived from primary sources and relating to news and current events, and the publication primarily serves the needs of a regional or local community. The newspaper must employ one full-time local news journalist who resides in the region or community, and the newspaper may not have more than 750 employees.
LOCAL MEDIA is defined as radio and television stations licensed by the Federal Communications Commissions to serve in a local community.