New York became the first state to incentivize hiring and retaining local journalists last year when it enacted a $30 million, three-year proposal that will provide payroll tax credits to local media outlets like radio for employing journalists. Now state lawmakers are considering another proposal that would incentivize local business to buy ads from local outlets.
State Senator Monica Martinez and Assembly member Jen Lunsford have introduced the Lift Our Communities Advertise Locally or LOCAL Act (Senate Bill No. 1865) will create a three year tax credit program. If passed, eligible small businesses will be able to claim a credit covering a sizeable portion of their local media ad spending.
“Small businesses are centers of our communities, built upon relationships with neighbors,” Martinez said. “The LOCAL Act will strengthen those ties by making it easier to connect to local customers through the trusted media deeply rooted in the places they serve. This legislation fosters a cycle of growth, allowing small businesses to expand their reach while investing in the media outlets that keep New Yorkers informed and engaged.”
Under the LOCAL Act any business with 10 employees or fewer would be eligible to receive a refundable tax credit of 80% of its first $5,000 of local advertising for a maximum credit of $4,000 per year. The state would allow total amount of credits of up to $10 million a year. The bill says 60% of the credits must be awarded to women owned, minority owned, and disabled veteran-owned businesses.
“By providing small businesses with the tools to connect with their neighbors and supporting the local journalism that keeps us informed, this legislation strengthens the foundation of our local economies,” Lunsford says.
The bill has the backing from support several business trade groups, including the Empire State Local News Coalition, which represents more than 200 local New York newspapers, which view the legislation as a way to both increase investment in local small businesses and bolster the sustainability of local news organizations. Other supporters include Empire State Local News Coalition, the Rebuild Local News Coalition, Long Island Association, the Long Island African American Chamber of Commerce, Upstate United, and the National Federation of Independent Business.
Similar tax credits for ad spending have been proposed on the federal level, but Congress has failed to advance any of the legislation proposed.
New York became the first state in the nation to incentivize hiring and retaining local journalists when it enacted a proposal last year that will provide local news outlets, including local radio and television stations, with a payroll tax credit to incentivize media outlets to hire more reporters.
The payroll tax benefit allows each eligible broadcast business and newspaper to receive a 50% refundable tax credit against the first $50,000 of an existing employee’s salary, up to a total of $300,000 per business. Beginning with the 2025 tax year, $30 million will be spent by New York during each of the next three years. The plan also allocates $4 million be spent each year to incentivize print and broadcast businesses to hire new journalists. To qualify, those reporters would need to work at least 30 hours per week and live within the broadcast market.
