119-hr1753

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1753 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 1753

 To provide tax incentives that support local media.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 February 27, 2025

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.
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