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Adds new section 45BB to Subpart D of part IV of subchapter A of chapter 1 (Internal Revenue Code), establishing a local media advertising credit for eligible small businesses and providing definitions, limitations, special rules, and a termination provision.
Amends section 38(b) (the general business credit) to add a new paragraph (42) to include the local media advertising credit under section 45BB(a) for eligible small businesses.
Clerical amendment to the table of sections for Subpart D of part IV of subchapter A of chapter 1 to add a new item for the newly added section 45BB.
Adds a new section 3135 to the Internal Revenue Code creating a payroll tax credit for eligible local news journalist employers (defines eligible employers and local news journalists; sets applicable percentages, limits on employees and wages, refundability rules, aggregation rules, special rules, exclusions for governmental employers, election to opt out, rules for third-party payors, and rulemaking authority for the Secretary).
Section 1324(b)(2) of title 31 is amended by inserting text after [text not specified in this section]. The specific inserted text is not provided in the section excerpt.
Creates two temporary tax credits to strengthen local news and help small businesses reach local audiences. First, eligible small businesses can claim a percentage of what they spend on ads in qualifying local newspapers or on local radio/TV, with a higher cap in their first tax year and a lower cap after that. The credit lasts up to five years and prevents double‑dipping with other tax benefits on the same expenses. Second, qualifying local news publishers can take a quarterly payroll tax credit for part of the wages they pay local news journalists. The credit rate starts at 50% for the first four quarters and then drops to 30%, with limits on the number of employees and the amount of wages that count. This credit also runs for up to five years and includes guardrails and coordination rules.
Adds new Internal Revenue Code section 45BB, creating a local media advertising credit for eligible small businesses equal to the applicable percentage of qualified local media advertising expenses paid or incurred in the taxable year (for purposes of section 38).
Defines the credit amount as the applicable percentage of qualified local media advertising expenses paid or incurred by the taxpayer during the taxable year.
Limits the credit per taxpayer: $5,000 in the first taxable year to which the section applies, and $2,500 in any subsequent taxable year.
Sets the applicable percentage used to compute the credit: 80% in the first taxable year to which the section applies, and 50% in any subsequent taxable year.
Defines an "eligible small business" as any person whose average number of full-time employees for the taxable year was less than 50 (as determined using the method for determining an applicable large employer).
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Referred to the House Committee on Ways and Means.
Introduced February 27, 2025 by Claudia Tenney · Last progress February 27, 2025
Referred to the House Committee on Ways and Means.
Introduced in House