Senators introduce the Local Journalism Sustainability Act​ to support local news organisations

By Emmanuel Legrand

US Senators Maria Cantwell (D-WA), Mark Kelly (D-AZ), and Ron Wyden (D-OR)​ have introduced ​the Local Journalism Sustainability Act​ that is meant to bolster local newsrooms through three targeted tax credits to help ensure they can continue to bring the news to their local communities. ​​

  A similar legislation was previously introduced in the House by US Representatives Dan Newhouse (R-WA-04) and Ann Kirkpatrick (D-AZ-02)​​. ​The Bill has now been referred to the Senate's Committee on Finance.

  The Local Journalism Sustainability Act offers a series of three tax credits aimed at ​"​sustaining and providing a pathway to viability for the local journalism industry in the years to come.​" 

  The first credit ​is meant to incentivi​s​e annual subscriptions to local papers​; the second credit is a five-year credit for local newspapers to employ and adequately compensate journalists​; the last of the three credits is a five-year tax credit that incentivi​ses small businesses to advertise with local newspapers, as well as local radio and television stations. 

  In October 2020, Cantwell released a report examining the changes affecting local news gathering and found that over the past two decades, the local newspaper industry has lost around 70% of its total revenue, and newspapers have been forced to let go of more than 40,000 newsroom employees.

  “The COVID-19 pandemic made it crystal clear that local reporters and newsrooms are essential to keeping the public informed and safe, but their importance spans well beyond health emergencies,” said Sen. Cantwell (picture, above). “At its core, local news is about holding the powerful accountable. The strength of our democracy is based in truth and transparency, and local newsrooms are on the ground in our communities asking the critical questions, countering misinformation, and telling our stories. We have to protect these vital parts of our communities.”

  Here are the details of the three tax credits schemes:

  > Local News Subscription Credit

   - Five-year credit of up to $250 annually. 

  - Credit covers 80% of subscription costs in first year and 50% in subsequent four years. o To receive full $250 credit, a subscriber would have to spend at least $312.50 in the first year, and $500 each of the following four years. 

  - Credit can be used to help support a donation to a nonprofit local news publisher. 

  > Local News Journalist Compensation Credit 

  - Five-year credit of up to $25,000 per journalist in first year and up to $15,000 in subsequent four years. 

   - Credit covers 50% of compensation up to $50,000 in first year, and 30% of compensation up to $50,000 in subsequent four years. 

  - Journalist must meet a minimum of 100 hours of work per quarter to qualify as an eligible employee. 

  > Local Newspaper and Local Media Advertising Credit

  - Five-year credit of up to $5,000 in first year and up to $2,500 in subsequent four years. 

  - Credit covers 80% of advertising costs in first year and 50% in subsequent four years. 

  - To increase flexibility, small businesses may utilize this credit to advertise with local television and radio stations, in addition to local newspapers, digital-only local news sources and nonprofit news organisations.