Local Journalism Sustainability Act
This bill allows individual and business taxpayers tax credits for the support of local newspapers and media. Specifically, individual taxpayers may claim an income tax credit up to $250 for a local newspaper subscription.
The bill also allows local newspaper employers a payroll tax credit for wages paid to an employee for service as a local news journalist and certain small businesses a tax credit for local newspaper and media advertising expenses.
To provide tax incentives that support local newspapers and other local 
                     media, and for other purposes.

    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 ``Local Journalism Sustainability 
Act''.

SEC. 2. CREDIT FOR LOCAL NEWSPAPER SUBSCRIPTIONS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. LOCAL NEWSPAPER SUBSCRIPTIONS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the applicable percentage of amounts 
paid or incurred for subscriptions to one or more local newspapers for 
the personal use of the taxpayer.
    ``(b) Annual Dollar Limitation.--The credit allowed under 
subsection (a) to any taxpayer for any taxable year shall not exceed 
$250.
    ``(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) 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 employs at 
                least one local news journalist who resides in such 
                regional or local community, and
                    ``(D) the publisher of such publication employs not 
                greater than 750 employees.
            ``(2) Local news journalist.--For purposes of paragraph 
        (1)(C), the term `local news journalist' means any individual 
        who regularly gathers, collects, photographs, records, writes, 
        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 subparagraphs 
                (C) and (D) of paragraph (1), 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 
        subparagraphs (A) and (B) of paragraph (1) shall not be treated 
        as met unless such requirements are met at all times during the 
        period beginning on the date which is 2 years 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.
            ``(5) Application to certain organizations exempt from 
        tax.--In the case of any print or digital publication which is 
        published by any organization described in section 501(c) and 
        exempt from tax under section 501(a)--
                    ``(A) such publication shall be treated as a local 
                newspaper only if the publication of print and digital 
                publications is the primary activity of such 
                organization, and
                    ``(B) any person making a charitable contribution 
                (as defined in section 170(c)) to such organization may 
                elect to treat such contribution as an amount paid or 
                incurred for a subscription to which this section 
                applies in lieu of treating such contribution as a 
                charitable contribution for purposes of section 170.
    ``(e) 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) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 is amended by inserting after the 
item relating to section 25D the following new item:

``Sec. 25E. Local newpaper subscriptions.''.
    (c) 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 JOURNALISTS.

    (a) In General.--In the case of an eligible local newspaper 
publisher, there shall be allowed as a credit against the taxes imposed 
by section 3111(a) of the Internal Revenue Code of 1986 for each 
calendar quarter an amount equal to the applicable percentage of wages 
paid by such publisher to local news journalists for such calendar 
quarter.
    (b) Limitations and Refundability.--
            (1) 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 newspaper publisher shall not exceed $12,500.
            (2) 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 subsections (e) and (f) of section 3111 
        of the Internal Revenue Code of 1986, sections 7001 and 7003 of 
        the Families First Coronavirus Response Act, and section 2301 
        of the CARES Act) on the wages paid with respect to the 
        employment of all the employees of the eligible local newspaper 
        publisher for such calendar quarter.
            (3) Refundability of excess credit.--
                    (A) In general.--If the amount of the credit under 
                subsection (a) exceeds the limitation of paragraph (2) 
                for any calendar quarter, such excess shall be treated 
                as an overpayment that shall be refunded under sections 
                6402(a) and 6413(b) of the Internal Revenue Code of 
                1986.
                    (B) Treatment of payments.--For purposes of section 
                1324 of title 31, United States Code, any amounts due 
                to the employer under this paragraph shall be treated 
                in the same manner as a refund due from a credit 
                provision referred to in subsection (b)(2) of such 
                section.
    (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 newspaper publisher.--The term 
        ``eligible local newspaper publisher'' 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 25E(d)(1)).
            (3) Local news journalist.--The term ``local news 
        journalist'' means, with respect to any eligible local 
        newspaper publisher for any calendar quarter, any individual 
        who provides at least 100 hours of service as a local news 
        journalist (as defined in section 25E(d)(2)) during such 
        calendar quarter to such eligible local newspaper publisher.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury or the Secretary's delegate.
            (5) Other terms.--Any term used in this section which is 
        also used in chapter 21 of the Internal Revenue Code of 1986 
        shall have the same meaning as when used in such chapter.
    (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, rules 
similar to the rules of sections 51(i)(1) and 280C(a) of the Internal 
Revenue Code of 1986 shall apply.
    (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 newspaper publisher 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 45S of such Code.
            (3) Third-party payors.--Any credit allowed under this 
        section shall be treated as a credit described in section 
        3511(d)(2) of such Code.
    (i) Transfers to Federal Old-Age and Survivors Insurance Trust 
Fund.--There are hereby appropriated to the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund established under section 201 of the Social Security Act (42 
U.S.C. 401) amounts equal to the reduction in revenues to the Treasury 
by reason of this section (without regard to this subsection). Amounts 
appropriated by the preceding sentence shall be transferred from the 
general fund at such times and in such manner as to replicate to the 
extent possible the transfers which would have occurred to such Trust 
Fund or Account had this section not been enacted.
    (j) 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.
    (k) Regulations and Guidance.--The Secretary shall issue such 
forms, instructions, regulations, and guidance as are necessary--
            (1) to allow the advance payment of the credit under 
        subsection (a), subject to the limitations provided in this 
        section, based on such information as the Secretary shall 
        require;
            (2) to provide for the reconciliation of such advance 
        payment with the amount advanced at the time of filing the 
        return of tax for the applicable calendar quarter or taxable 
        year; and
            (3) 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.
    (l) Application.--This section shall only apply to calendar 
quarters during the first 5 calendar years beginning after the date of 
the enactment of this Act.

SEC. 4. CREDIT FOR ADVERTISING IN LOCAL NEWSPAPERS AND 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. 45U. ADVERTISING IN LOCAL NEWSPAPERS AND 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--
            ``(1) In general.--The term `qualified local media 
        advertising expenses' means amounts paid or incurred in the 
        ordinary course of a trade or business for advertising in a 
        local newspaper (as defined in section 25E(d)) or a broadcast 
        of a local radio or television station.
            ``(2) Local radio or television station.--The term `local 
        radio or television station' means any broadcast radio or 
        television station licensed by the Federal Communications 
        Commission to serve a local community.
    ``(f) 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 employer for 
        purposes of this section.
    ``(g) 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), as amended by the preceding provisions of this Act, is further 
amended by striking ``plus'' at the end of paragraph (32), by striking 
the period at the end of paragraph (33) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(34) in the case of an eligible small business, the local 
        media advertising credit determined under section 45U(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. 45U. Advertising in local newspapers and 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.
                                 <all>
Local Journalism Sustainability Act
To provide tax incentives that support local newspapers and other local media, and for other purposes.
Local Journalism Sustainability Act
Rep. Kirkpatrick, Ann