“To provide tax incentives that support local newspapers and other local media, and for other purposes.”
No CRS summary available for this bill.
This section establishes a nonrefundable tax credit for individuals equal to 80% (in the first applicable taxable year) or 50% (in subsequent years) of amounts paid or incurred for personal subscriptions to one or more qualified local newspapers, capped at $250 annually. A local newspaper is defined as a print or digital publication with primarily original news content from primary sources serving a regional or local community; published by an entity employing at least one local journalist residing in that community and no more than 750 employees (with aggregation rules); and meeting these criteria continuously from two years before enactment through the subscription date (with a special rule allowing certain 501(c) organizations to qualify if publishing is their primary activity and permitting taxpayers to elect to treat qualifying contributions as subscription payments). The credit applies to amounts paid or incurred in taxable years beginning after the date of enactment and terminates for taxable years ending after the close of the five-year period beginning on that date.
This section establishes a refundable credit against the employer share of Social Security tax (under IRC §3111(a)) for eligible local newspaper publishers equal to 50% of qualified wages paid to local news journalists during each of the first four calendar quarters the credit is in effect and 30% thereafter, with qualified wages not to exceed $12,500 per individual per quarter (requiring at least 100 hours of service as a local news journalist, as defined by reference to IRC §25F(d)(2)). An eligible local newspaper publisher is an employer whose substantially all gross receipts for the quarter are from publishing local newspapers (as defined by reference to IRC §25F(d)(1)); the credit is limited to applicable employment taxes for the quarter, with any excess refundable as an overpayment (treated under 31 U.S.C. §1324(b)(2) the same as specified pre-1978 or certain later credit provisions (Thus, refunds are payable from the Treasury appropriation for internal revenue refunds.)); related rules include aggregation of related employers (unless producing different publications), denial of double benefits with other credits (e.g., IRC §§45S, 51), transfers to Social Security trust funds equivalent to revenue losses, waiver of employment tax deposit penalties for reasonable anticipation of the credit, and an election to opt out.
This section establishes a new general business credit under section 45BB for eligible small businesses (i.e., those with fewer than 50 full-time employees on average, as determined under section 4980H(c)(2)) equal to 80% (50% in subsequent years) of qualified local media advertising expenses paid or incurred, capped at $5,000 (first taxable year) or $2,500 (subsequent years). Qualified expenses include amounts paid for advertising in a local newspaper (as defined in section 25F(d)) or on a local radio or television station broadcast (i.e., FCC-licensed to serve a local community). The credit denies a corresponding deduction for the expensed amount, applies aggregation rules under sections 52 and 414, and terminates for amounts paid or incurred in taxable years ending after the 5-year period beginning on the date of enactment; the amendments apply to taxable years beginning after enactment.