Community News and Small Business Support Act
This bill allows certain small businesses and employers of journalists tax credits for advertising in local media and for the wages of not more than 1,500 local news journalists in any calendar quarter. Specifically, the tax credit for advertising in local media allows small businesses with less than 50 full-time employees a limited credit for the expense of advertising in a local newspaper, or in any licensed broadcast radio or television station that serves a local community.
The credit for the wages of a local news journalist is a payroll tax credit that takes into account wages not exceeding $12,500 in any calendar quarter.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4756 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 4756
To provide tax incentives that support local media.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 19, 2023
Ms. Tenney (for herself and Ms. DelBene) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide tax incentives that support local media.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community News and Small Business
Support Act''.
SEC. 2. CREDIT FOR ADVERTISING IN LOCAL MEDIA.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. ADVERTISING IN LOCAL MEDIA.
``(a) In General.--For purposes of section 38, in the case of any
eligible small business, the local media advertising credit determined
under this section for any taxable year is an amount equal to the
applicable percentage of the qualified local media advertising expenses
paid or incurred by the taxpayer during such taxable year.
``(b) Limitation.--The credit allowed under subsection (a) to any
taxpayer for any taxable year shall not exceed--
``(1) in the case of the first taxable year to which this
section applies, $5,000, and
``(2) in the case of any subsequent taxable year, $2,500.
``(c) Applicable Percentage.--For purposes of this section, the
term `applicable percentage' means--
``(1) in the case of the first taxable year to which this
section applies, 80 percent, and
``(2) in the case of any subsequent taxable year, 50
percent.
``(d) Eligible Small Business.--For purposes of this section, the
term `eligible small business' means any person for any taxable year if
the average number of full-time employees (as determined for purposes
of determining whether an employer is an applicable large employer for
purposes of section 4980H(c)(2) of the Internal Revenue Code of 1986)
employed by such person during such taxable year was less than 50.
``(e) Qualified Local Media Advertising Expenses.--For purposes of
this section, the term `qualified local media advertising expenses'
means amounts paid or incurred in the ordinary course of a trade or
business for--
``(1) advertising in a local newspaper, or
``(2) advertising on any broadcast radio or television
station licensed by the Federal Communications Commission to
serve a local community.
For purposes of this subsection, the term `advertising' includes
sponsorships.
``(f) Local Newspaper.--For purposes of this section--
``(1) In general.--The term `local newspaper' means any
print or digital publication if--
``(A) the primary content of such publication is
original content derived from primary sources and
relating to news and current events,
``(B) such publication primarily serves the needs
of a regional or local community,
``(C) the publisher of such publication--
``(i) employs at least one full-time local
news journalist who resides in such regional or
local community,
``(ii) employs not greater than 750
employees, and
``(iii) is not--
``(I) an organization described in
paragraph (4), (5), or (6) of section
501(c),
``(II) a political organization (as
defined in section 527(e)),
``(III) any organization controlled
by one or more organizations described
in subclauses (I) or (II), or
``(IV) any organization that
received more than $100,000 (in the
aggregate) from organizations described
in subclauses (I), (II), or (III)
during the taxable year or any
preceding taxable year.
``(2) Local news journalist.--For purposes of paragraph
(1)(C)(i), the term `local news journalist' means any
individual who regularly gathers, prepares, produces, collects,
edits, photographs, records, directs the recording of, writes,
presents, or reports news or information that concerns local
events or other matters of local public interest.
``(3) Aggregation rule.--
``(A) In general.--For purposes of clauses (ii) and
(iii) of paragraph (1)(C), all persons treated as a
single employer under subsection (a) or (b) of section
52, or subsection (m) or (o) of section 414, shall be
treated as one person.
``(B) Exception.--Subparagraph (A) shall not apply
unless such persons are involved in the production of
the same print or digital publication.
``(4) Continuous qualification.--The requirements of
paragraph (1)(C) shall not be treated as met unless such
requirements are met at all times during the period beginning
on the date which is 1 year before the date of the enactment of
this section and ending on the date that the subscription
described in subsection (a) is paid or incurred.
``(g) Special Rules.--
``(1) Denial of double benefit.--No deduction shall be
allowed for any qualified local media advertising expenses
otherwise allowable as a deduction for the taxable year which
is equal to the amount of the credit determined for such
taxable year under subsection (a).
``(2) Aggregation rule.--All persons treated as a single
employer under subsection (a) or (b) of section 52 of the
Internal Revenue Code of 1986, or subsection (m) or (o) of
section 414 of such Code, shall be treated as one person for
purposes of applying subsection (b).
``(h) Termination.--No credit shall be allowed under this section
for any amount paid or incurred in a taxable year ending after the
close of 5-year period beginning on the date of the enactment of this
section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end of
paragraph (40), by striking the period at the end of paragraph (41) and
inserting ``, plus'', and by adding at the end the following new
paragraph:
``(42) in the case of an eligible small business, the local
media advertising credit determined under section 45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45BB. Advertising in local media.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after the
date of the enactment of this Act.
SEC. 3. PAYROLL CREDIT FOR COMPENSATION OF LOCAL NEWS JOURNALIST.
(a) In General.--Subchapter D of chapter 21 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 3135. LOCAL NEWS JOURNALIST COMPENSATION CREDIT.
``(a) In General.--In the case of an eligible local news journalist
employer, there shall be allowed as a credit against applicable
employment taxes for each calendar quarter an amount equal to the
applicable percentage of the wages paid by such employer to local news
journalists for such calendar quarter.
``(b) Limitations and Refundability.--
``(1) Limitation on number of local news journalists taken
into account.--The number of employees of any eligible local
news journalist employer which are taken into account as local
news journalists under subsection (a) for any calendar quarter
shall not exceed 1,500.
``(2) Limitation on wages taken into account.--The amount
of wages paid with respect to any individual which may be taken
into account under subsection (a) during any calendar quarter
by the eligible local news journalist employer shall not exceed
$12,500.
``(3) Credit limited to employment taxes.--The credit
allowed by subsection (a) with respect to any calendar quarter
shall not exceed the applicable employment taxes (reduced by
any credits allowed under sections 3131, 3132, and 3134) on the
wages paid with respect to the employment of all the employees
of the eligible local news journalist employer for such
calendar quarter.
``(4) Refundability of excess credit.--If the amount of the
credit under subsection (a) exceeds the limitation of paragraph
(3) for any calendar quarter, such excess shall be treated as
an overpayment that shall be refunded under sections 6402(a)
and 6413(b).
``(c) Definitions.--For purposes of this section--
``(1) Applicable percentage.--The term `applicable
percentage' means--
``(A) in the case of each of the first 4 calendar
quarters to which this section applies, 50 percent; and
``(B) in the case of each calendar quarter
thereafter, 30 percent.
``(2) Eligible local news journalist employer.--The term
`eligible local news journalist employer' means, with respect
to any calendar quarter, any employer if substantially all of
the gross receipts of such employer for such calendar quarter
are derived in the trade or business of publishing local
newspapers (as defined in section 45BB(f)).
``(3) Local news journalist.--The term `local news
journalist' means, with respect to any eligible local news
journalist employer for any calendar quarter, any individual
who provides at least 200 hours of service as a local news
journalist (as defined in section 45BB(f)(2)) during such
calendar quarter to such eligible local news journalist
employer.
``(4) Applicable employment taxes.--The term `applicable
employment taxes' means the following:
``(A) The taxes imposed under section 3111(b).
``(B) So much of the taxes imposed under section
3221(a) as are attributable to the rate in effect under
section 3111(b).
``(d) Aggregation Rule.--
``(1) In general.--All persons treated as a single employer
under subsection (a) or (b) of section 52 of the Internal
Revenue Code of 1986, or subsection (m) or (o) of section 414
of such Code, shall be treated as one employer for purposes of
this section.
``(2) Exception.--Paragraph (1) shall not apply unless such
persons are involved in the production of the same print or
digital publication.
``(e) Certain Rules to Apply.--For purposes of this section--
``(1) In general.--Rules similar to the rules of sections
51(i)(1) and 280C(a) of the Internal Revenue Code of 1986 shall
apply.
``(2) Exception to related party rules.--In the case of an
eligible local news journalist employer which employs fewer
than 15 local news journalists during the calendar quarter,
paragraph (1) shall be applied without regard to the reference
to section 51(i)(1).
``(f) Certain Governmental Employers.--This credit shall not apply
to the Government of the United States, the government of any State or
political subdivision thereof, or any agency or instrumentality of any
of the foregoing.
``(g) Election to Have Section Not Apply.--This section shall not
apply with respect to any eligible local news journalist employer for
any calendar quarter if such person elects (at such time and in such
manner as the Secretary may prescribe) not to have this section apply.
``(h) Special Rules.--
``(1) Employee not taken into account more than once.--An
employee shall not be included for purposes of this section for
any period with respect to any employer if such employer is
allowed a credit under section 51 of the Internal Revenue Code
of 1986 with respect to such employee for such period.
``(2) Denial of double benefit.--Any wages taken into
account in determining the credit allowed under this section
shall not be taken into account for purposes of determining the
credit allowed under section 41, 45A, 45P, 45S, or 1396.
``(3) Third-party payors.--Any credit allowed under this
section shall be treated as a credit described in section
3511(d)(2).
``(4) Treatment of deposits.--The Secretary shall waive any
penalty under section 6656 of the Internal Revenue Code of 1986
for any failure to make a deposit of any applicable employment
taxes if the Secretary determines that such failure was due to
the reasonable anticipation of the credit allowed under this
section.
``(5) Extension of limitation on assessment.--
Notwithstanding section 6501, the limitation on the time period
for the assessment of any amount attributable to a credit
claimed under this section shall not expire before the date
that is 5 years after the later of--
``(A) the date on which the original return which
includes the calendar quarter with respect to which
such credit is determined is filed, or
``(B) the date on which such return is treated as
filed under section 6501(b)(2).
``(i) Regulations and Guidance.--The Secretary shall issue such
forms, instructions, regulations, and guidance as are necessary--
``(1) with respect to the application of the credit under
subsection (a) to third-party payors (including professional
employer organizations, certified professional employer
organizations, or agents under section 3504 of the Internal
Revenue Code of 1986), including regulations or guidance
allowing such payors to submit documentation necessary to
substantiate the eligible employer status of employers that use
such payors, and
``(2) to prevent the avoidance of the purposes of the
limitations under this section, including through the leaseback
of employees.
Any forms, instructions, regulations, or other guidance described in
paragraph (2) shall require the customer to be responsible for the
accounting of the credit and for any liability for improperly claimed
credits and shall require the certified professional employer
organization or other third party payor to accurately report such tax
credits based on the information provided by the customer.
``(j) Application.--This section shall not apply to any calendar
quarter beginning more than 5 years after the date of the enactment of
this section.''.
(b) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``3135,'' after ``3134,''.
(2) The table of sections for subchapter D of chapter 21 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following:
``Sec. 3135. Local news journalist compensation credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar quarters beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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