Sponsors
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Creates three temporary tax incentives to support local news outlets and encourage subscriptions and advertising. It provides (1) an individual nonrefundable credit for personal subscriptions to qualifying local newspapers (capped per taxpayer), (2) a refundable payroll tax credit for eligible local newspaper publishers to subsidize wages paid to local news journalists (quarterly caps and refund rules), and (3) a nonrefundable small-business credit for local newspaper or local radio/TV advertising (per-year caps). All three tax incentives include detailed eligibility rules for what counts as a qualifying local newspaper, limits to prevent double-dipping with other credits or deductions, aggregation rules for related employers, and sunset/expiration five years after enactment. The measures take effect for taxable years or calendar quarters beginning after enactment, with various per-year and per-quarter percentage rates and caps that decline after initial years.
The bill provides near‑term, targeted tax credits to support local journalism, journalists' wages, and small‑business local advertising — boosting revenue and marketing in the short run — but creates federal costs, complexity, capped benefits that leave low‑liability recipients behind, and a five‑year sunset that leaves long‑term sustainability uncertain.
Local newspaper publishers and journalists receive a refundable payroll tax credit (50% initial quarters, 30% thereafter) that lowers labor costs and can provide immediate cash flow through refunds.
Small businesses get a tax credit covering a large share of qualifying local newspaper or broadcast advertising (up to 80% first year, 50% later), making local advertising more affordable and helping businesses reach customers.
Individual taxpayers can reduce the effective price of local newspaper subscriptions (credit covers 80% first year, 50% afterward, capped at $250/year), which may increase paid local subscriptions and support local news outlets.
All taxpayers ultimately bear increased federal outlays because credits are funded in part by general‑fund transfers to the Social Security trust funds.
The programs sunset after five years, creating short‑term relief but substantial uncertainty for publishers, journalists, and small businesses planning long‑term staffing and marketing investments.
Complex eligibility and aggregation rules (employee counts, 'substantially all' receipts tests, multi‑year continuity) may exclude some local outlets and impose compliance burdens on publishers and the IRS.
Introduced July 17, 2025 by John W. Mannion · Last progress July 17, 2025