Sponsors
The bill directs multiple, targeted tax incentives to revive local journalism by lowering subscription costs, subsidizing journalist wages, and encouraging local advertising, but the benefits are limited by modest caps, complex eligibility, nonrefundable features for many recipients, and fiscal costs that create uncertainty and restrict who actually benefits.
Subscribers, small publishers, and local media advertisers: the bill boosts local journalism revenue and employment by (a) a consumer tax credit for qualifying local newspaper subscriptions (up to $250/year), (b) a refundable payroll tax credit subsidizing journalist wages, and (c) a small-business ad credit that encourages advertising in local newspapers and FCC‑licensed radio/TV.
Small and local publishers: refundable payroll credit features — refundability, advance payment options, and waiver of deposit penalties — provide near-term cash flow support and lower administrative risk even for publishers without employment tax liability.
Seniors and other beneficiaries: transfers to the Social Security Trust Funds offset payroll-tax revenue losses from the employer credit, protecting OASI/DI balances from the payroll tax reduction.
Many taxpayers and small businesses: the program’s modest caps and a five-year sunset (e.g., $250 per-subscriber cap, ad credit caps, per-employee wage caps, and 5-year window) limit the magnitude and permanence of benefits and create uncertainty about long-term support for local news.
Low- or no‑liability taxpayers and some small businesses: because the individual subscription credit and the small-business ad credit are nonrefundable (and the ad credit is a general business credit), those with little or no tax liability may be unable to realize the benefit.
All taxpayers: the refundable payroll tax credit increases federal outlays and reduces Treasury receipts, which could raise deficits or require offsets elsewhere if transfers do not fully cover costs.
Based on analysis of 4 sections of legislative text.
Creates temporary tax credits for individual local newspaper subscriptions, publisher payroll for local journalists, and small-business local-media advertising.
Introduced July 17, 2025 by John W. Mannion · Last progress July 17, 2025
Creates three temporary tax credits to support local news and local advertising: (1) a nonrefundable individual credit for payments for qualifying local newspaper subscriptions (capped at $250 per taxpayer), (2) a payroll tax credit for wages paid to qualifying local news journalists (with per-employee quarterly wage caps and refundable treatment for excess), and (3) a general business credit for small businesses that buy advertising in qualifying local media (capped per year). Each credit is more generous in the first year(s) and then reduced in later years, and most expire five years after enactment. Eligibility rules narrowly define qualifying local newspapers, local news journalists, and eligible small businesses; include aggregation rules; limit credit amounts and percentages; deny deductions for the portion of expenses that produce the advertising credit; and set up administrative rules for claiming, advance payments, reconciliation, and transfers to Social Security trust funds to offset Treasury losses.