,,ii #aagth ,,congress #ast ,session ,s4 #bdcd ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bb1 #bjba,ms4 ,cantwell 7for herself1 ,mr4 ,kelly1 and ,mr4 ,wyden7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to provide tax incentives that support local newspapers and other local media1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,local ,journalism ,sustainability ,act4 #b4 ,credit for local newspaper subscriptions 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #be;,d the following new section3 #be;,e4 ,local newspaper subscriptions 7a7 ,in general ,in the case of an individual1 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 taxpayer4 7b7 ,annual dollar limitation ,the credit allowed under subsection 7a7 to any taxpayer for any taxable year shall not exceed #bej4 7c7 ,applicable percentage ,for purposes of this section1 the term applicable percentage means-- 7#a7 in the case of the first taxable year to which this section applies1 #hj percent1 and 7#b7 in the case of any subsequent taxable year1 #ej percent4 7d7 ,local newspaper ,for purposes of this section-- 7#a7 ,in general ,the term local newspaper means any print or digital publication if-- 7,a7 the primary content of such publication is original content derived from primary sources and relating to news and current events1 7,b7 such publication primarily serves the needs of a regional or local community1 7,c7 the publisher of such publication employs at least one local news journalist who resides in such regional or local community1 and 7,d7 the publisher of such publication employs not greater than #a1jjj employees4 7#b7 ,local news journalist ,for purposes of paragraph 7#a77;,c71 the term local news journalist means any individual who regularly gathers1 collects1 photographs1 records1 writes1 or reports news or information that concerns local events or other matters of local public interest4 7#c7 ,aggregation rule 7,a7 ,in general ,for purposes of subparagraphs 7,c7 and 7,d7 of paragraph 7#a71 all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb1 or subsection 7m7 or 7o7 of section #dad1 shall be treated as one person4 7,b7 ,exception ,subparagraph 7,a7 shall not apply unless such persons are involved in the production of the same print or digital publication4 7#d7 ,continuous qualification ,the requirements of subparagraphs 7,a7 and 7,b7 of paragraph 7#a7 shall not be treated as met unless such requirements are met at all times during the period beginning on the date which is #b years before the date of the enactment of this section and ending on the date that the subscription described in subsection 7a7 is paid or incurred4 7#e7 ,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 #eja7;c7 and exempt from tax under section #eja7;a7-- 7,a7 such publication shall be treated as a local newspaper only if the publication of print and digital publications is the primary activity of such organization1 and 7,b7 any person making a charitable contribution 7as defined in section #agj7;c77 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 #agj4 7e7 ,termination ,no credit shall be allowed under this section for any amount paid or incurred in a taxable year ending after the close of #e-year period beginning on the date of the enactment of this section4 4 7b7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #be;,d the following new item3 ,sec4 #be;,e4 ,local newspaper subscriptions4 4 7c7 ,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 ,act4 #c4 ,payroll credit for compensation of local news journalists 7a7 ,in general ,subchapter ,d of chapter #ba of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #cace4 ,local news journalist compensation credit 7a7 ,in general ,in the case of an eligible local news journalist employer1 there shall be allowed as a credit against the taxes imposed by section #caaa7;a7 for each calendar quarter an amount equal to the applicable percentage of wages paid by such employer to local news journalists for such calendar quarter4 7b7 ,limitations and refundability 7#a7 ,wages taken into account ,the amount of wages paid with respect to any individual which may be taken into account under subsection 7a7 during any calendar quarter by the eligible local news journalist employer shall not exceed #ab1ejj4 7#b7 ,credit limited to employment taxes ,the credit allowed by subsection 7a7 with respect to any calendar quarter shall not exceed the applicable employment taxes 7reduced by any credits allowed under subsections 7e7 and 7f7 of section #caaa1 section #caca1 #cacb1 and #cacd7 on the wages paid with respect to the employment of all the employees of the eligible local news journalist employer for such calendar quarter4 7#c7 ,refundability of excess credit ,if the amount of the credit under subsection 7a7 exceeds the limitation of paragraph 7#b7 for any calendar quarter1 such excess shall be treated as an overpayment that shall be refunded under sections #fdjb7;a7 and #fdac7;b74 7c7 ,definitions ,for purposes of this section-- 7#a7 ,applicable percentage ,the term applicable percentage means-- 7,a7 in the case of each of the first #d calendar quarters to which this section applies1 #ej percent1 and 7,b7 in the case of each calendar quarter thereafter1 #cj percent4 7#b7 ,eligible local news journalist employer 7,a7 ,in general ,the term eligible local news journalist employer means1 with respect to any calendar quarter1 any employer which-- 7i7 is-- 7,i7 an eligible local newspaper publisher1 7,,ii7 an eligible digital news organization1 7,,iii7 a broadcast station1 or 7,,iv7 a public broadcasting entity1 and 7ii7 employs local news journalists4 7,b7 ,eligible local newspaper publisher ,the term eligible local newspaper publisher means1 with respect to any calendar quarter1 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 7as defined in section #be;,e7d77#a774 7,c7 ,eligible digital news organization ,the term eligible digital news organization means a digital information content provider which is engaged in the creation of original local or regional news and information4 7,d7 ,broadcast station ,the term broadcast station has the meaning given such term under section #c of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #aec74 7,e7 ,public broadcasting entity ,the term public broadcasting entity has the meaning given such term under section #cig7aa7 of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #cig7aa774 7#c7 ,local news journalist ,the term local news journalist means-- 7,a7 with respect to any eligible local newspaper publisher for any calendar quarter1 any individual who provides at least #ajj hours of service during such quarter in the gathering1 collecting1 photographing1 recording1 writing1 or reporting news or information that concerns local events or other matters of local public interest during such calendar quarter to such employer1 and 7,b7 with respect to any eligible digital news organization1 broadcast station1 or public broadcasting entity for any calendar quarter1 any individual who provides at least #ajj hours of service during such quarter in the original reporting1 gathering1 collecting1 writing1 editing1 producing1 verification1 recording1 photographing1 presentation1 design1 or technology support of news or information that concerns regional or local events or other matters of regional or local public interest4 7#d7 ,other terms ,any term used in this section which is also used in this chapter shall have the same meaning as when used in such chapter4 7d7 ,aggregation rule 7#a7 ,in general ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb1 or subsection 7m7 or 7o7 of section #dad1 shall be treated as one employer for purposes of this section4 7#b7 ,exception ,paragraph 7#a7 shall not apply unless such persons are involved in the production of the same print or digital publication4 7e7 ,certain rules ,to apply ,for purposes of this section1 rules similar to the rules of sections #ea7;i77#a7 and #bhj;,c7a7 shall apply4 7f7 ,certain governmental employers 7#a7 ,in general ,this credit shall not apply to the ,government of the ,united ,states1 the government of any ,state or political subdivision thereof1 or any agency or instrumentality of any of the foregoing4 7#b7 ,exception ,paragraph 7#a7 shall not apply to any public broadcasting entity 7as defined in section #cig7aa7 of the ,communications ,act of #aicd 7#dg ,u4,s4,c4 #cig7aa7774 7g7 ,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 7at such time and in such manner as the ,secretary may prescribe7 not to have this section apply4 7h7 ,special rules 7#a7 ,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 #ea with respect to such employee for such period4 7#b7 ,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 #de,s4 7#c7 ,third-party payors ,any credit allowed under this section shall be treated as a credit described in section #ceaa7;d77#b7 of such ,code4 7i7 ,treatment of deposits ,the ,secretary shall waive any penalty under section #ffef 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 section4 7j7 ,extension of ,limitation on ,assessment ,notwithstanding section #feja1 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 #e years after the later of-- 7#a7 the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed1 or 7#b7 the date on which such return is treated as filed under section #feja7;b77#b74 7k7 ,regulations and guidance ,the ,secretary shall issue such forms1 instructions1 regulations1 and guidance as are necessary-- 7#a7 to allow the advance payment of the credit under subsection 7a71 subject to the limitations provided in this section1 based on such information as the ,secretary shall require1 7#b7 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 year1 7#c7 with respect to the application of the credit under subsection 7a7 to third-party payors 7including professional employer organizations1 certified professional employer organizations1 or agents under section #cejd71 including regulations or guidance allowing such payors to submit documentation necessary to substantiate the eligible employer status of employers that use such payors1 and 7#d7 to prevent the avoidance of the purposes of the limitations under this section4 ,any forms1 instructions1 regulations1 or other guidance described in paragraph 7#c7 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 customer4 7l7 ,application ,this section shall only apply to wages paid in calendar quarters beginning after the date of the enactment of this section and beginning before the date that is #e years after the first day of the first calendar quarter to which this section applies4 4 7b7 ,refunds ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cace1 after #cacd14 7c7 ,clerical amendment ,the table of sections for subchapter ,d of chapter #ba of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,sec4 #cace4 ,local news journalist compensation credit4 4 7d7 ,effective date ,the amendments made by this section shall apply to calendar quarters beginning after the date of the enactment of this ,act4 #d4 ,credit for advertising in local newspapers and local media 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,u4 ,advertising in local newspapers and local media 7a7 ,in general ,for purposes of section #ch1 in the case of any eligible small business1 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 year4 7b7 ,limitation ,the credit allowed under subsection 7a7 to any taxpayer for any taxable year shall not exceed-- 7#a7 in the case of the first taxable year to which this section applies1 #e1jjj1 and 7#b7 in the case of any subsequent taxable year1 #b1ejj4 7c7 ,applicable percentage ,for purposes of this section1 the term applicable percentage means-- 7#a7 in the case of the first taxable year to which this section applies1 #hj percent1 and 7#b7 in the case of any subsequent taxable year1 #ej percent4 7d7 ,eligible small business ,for purposes of this section1 the term eligible small business means any person for any taxable year if the average number of full-time employees 7as determined for purposes of determining whether an employer is an applicable large employer for purposes of section #dihj;,h7c77#b7 of the ,internal ,revenue ,code of #aihf7 employed by such person during such taxable year was less than #ej4 7e7 ,qualified local media advertising expenses ,for purposes of this section-- 7#a7 ,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-- 7,a7 in a local newspaper 7as defined in section #be;,e7d771 or 7,b7 through a broadcast of1 or in the digital content or digital publications of1 a local radio or television station4 7#b7 ,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 community4 7f7 ,special rules 7#a7 ,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 7a74 7#b7 ,aggregation rule ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb of the ,internal ,revenue ,code of #aihf1 or subsection 7m7 or 7o7 of section #dad of such ,code1 shall be treated as one employer for purposes of this section4 7g7 ,termination ,no credit shall be allowed under this section for any amount paid or incurred in a taxable year ending after the close of #e-year period beginning on the date of the enactment of this section4 4 7b7 ,credit allowed as part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cd7 in the case of an eligible small business1 the local media advertising credit determined under section #de,u7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,u4 ,advertising in local newspapers and local media4 4 7d7 ,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 ,act4