Proposed tax credits in the Local Journalism Sustainability Act, a bill cosponsored by U.S. Rep. Rodney Davis (R-IL), aim to encourage Americans to subscribe to local publications, help such publications hire and pay journalists, and provide businesses and publications with advertising dollars.
“Local newspapers and media outlets are a vital source of information for the public, and they’ve been hit hard by changing economic conditions, which the pandemic has only made worse,” Rep. Davis said. “That’s why I’m cosponsoring the Local Journalism Sustainability Act — to promote subscriptions, advertising, and hiring of journalists for local newspapers and media outlets.”
Rep. Davis on June 28 joined as a cosponsor of H.R. 3940, which was introduced on June 16 by U.S. Reps. Ann Kirkpatrick (D-AZ) and Dan Newhouse (R-WA) to provide a pathway to financial viability for local newspapers, either in print or online, through a series of three tax credits.
The first credit would incentivize annual subscriptions to local papers that primarily produce content related to local news and current events and also could be used for nonprofit publications, according to a bill summary provided by Rep. Davis’ office.
The second credit would be a five-year credit for local newspapers to employ and adequately compensate journalists, while the third credit would be a five-year tax credit that incentivizes small businesses to advertise with local newspapers, as well as local radio and television stations, the summary says.
“I look forward to working with my colleagues in Congress to get our bill passed so we can support local journalism,” said Rep. Davis.