,,ii  #aag? ,,congress  #a/ ,session    
,s4 #bdcd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bb1 #bjba,ms4   
,cantwell 7= h]self1 ,mr4 ,kelly1 & ,mr4
 ,wyd57 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to provide tax     
inc5tives t support local newspap]s &   
o!r local m$ia1 & = o!r purposes4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,local ,j\rnalism ,su/a9ability ,act4   
#b4 ,cr$it = local newspap]             
subscriptions  7a7 ,9 g5]al ,subp>t ,a (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #be;,d ! foll[+  
new section3  #be;,e4 ,local newspap]   
subscriptions  7a7 ,9 g5]al ,9 ! case ( 
an individual1 !re %all be all[$ z a    
cr$it aga9/ ! tax impos$ by ?is *apt] = 
! taxable ye> an am\nt equal to !       
applicable p]c5tage ( am\nts paid or    
incurr$ = subscriptions to "o or m local
 newspap]s = ! p]sonal use ( ! taxpay]4 
7b7 ,annual doll> limitation ,! cr$it   

all[$ "u subsection 7a7 to any taxpay] =
 any taxable ye> %all n exce$ #bej4  7c7
 ,applicable p]c5tage ,= purposes ( ?is 
section1 ! t]m applicable p]c5tage      
means-- 7#a7 9 ! case ( ! fir/ taxable  
ye> to :i* ?is section applies1 #hj     
p]c5t1 &  7#b7 9 ! case ( any subsequ5t 
taxable ye>1 #ej p]c5t4  7d7 ,local     
newspap] ,= purposes ( ?is section--    
7#a7 ,9 g5]al ,! t]m local newspap]     
means any pr9t or digital publication   
if-- 7,a7 ! prim>y cont5t ( su*         
publication is orig9al cont5t d]iv$ f   
prim>y s\rces & relat+ to news & curr5t 
ev5ts1  7,b7 su* publication prim>ily   
s]ves ! ne$s ( a regional or local      
community1  7,c7 ! publi%] ( su*        
publication employs at lea/ "o local    
news j\rnali/ :o resides 9 su* regional 
or local community1 &  7,d7 ! publi%] ( 
su* publication employs n great] ?an    
#a1jjj employees4  7#b7 ,local news     
j\rnali/ ,= purposes ( p>agraph         
7#a77;,c71 ! t]m local news j\rnali/    
means any individual :o regul>ly ga!rs1 

collects1 photographs1 records1 writes1 
or reports news or in=mation t conc]ns  
local ev5ts or o!r matt]s ( local public
 int]e/4  7#c7 ,aggregation rule  7,a7  
,9 g5]al ,= purposes ( subp>agraphs 7,c7
 & 7,d7 ( p>agraph 7#a71 all p]sons     
treat$ z a s+le employ] "u subsection   
7a7 or 7b7 ( section #eb1 or subsection 
7m7 or 7o7 ( section #dad1 %all be      
treat$ z "o p]son4  7,b7 ,exception     
,subp>agraph 7,a7 %all n apply unless   
su* p]sons are involv$ 9 ! production ( 
! same pr9t or digital publication4     
7#d7 ,cont9u\s qualification ,!         
requirem5ts ( subp>agraphs 7,a7 & 7,b7 (
 p>agraph 7#a7 %all n be treat$ z met   
unless su* requirem5ts are met at all   
times dur+ ! p]iod beg9n+ on ! date :i* 
is #b ye>s be=e ! date ( ! enactm5t (   
?is section & end+ on ! date t !        
subscription describ$ 9 subsection 7a7  
is paid or incurr$4  7#e7 ,application  
to c]ta9 organizations exempt f tax ,9 !
 case ( any pr9t or digital publication 
:i* is publi%$ by any organization      

describ$ 9 section #eja7;c7 & exempt f  
tax "u section #eja7;a7-- 7,a7 su*      
publication %all be treat$ z a local    
newspap] only if ! publication ( pr9t & 
digital publications is ! prim>y        
activity ( su* organization1 &  7,b7 any
 p]son mak+ a *>itable contribution 7z  
def9$ 9 section #agj7;c77 to su*        
organization may elect to treat su*     
contribution z an am\nt paid or incurr$ 
= a subscription to :i* ?is section     
applies 9 lieu ( treat+ su* contribution
 z a *>itable contribution = purposes ( 
section #agj4  7e7 ,t]m9ation ,no cr$it 
%all be all[$ "u ?is section = any am\nt
 paid or incurr$ 9 a taxable ye> end+   
aft] ! close ( #e-ye> p]iod beg9n+ on ! 
date ( ! enactm5t ( ?is section4  4  7b7
 ,cl]ical am5dm5t ,! table ( sections = 
subp>t ,a ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] ! item    
relat+ to section #be;,d ! foll[+ new   
item3  ,sec4 #be;,e4 ,local newspap]    
subscriptions4  4  7c7 ,effective date  

,! am5dm5ts made by ?is section %all    
apply to am\nts paid or incurr$ 9       
taxable ye>s beg9n+ aft] ! date ( !     
enactm5t ( ?is ,act4  #c4 ,payroll cr$it
 = comp5sation ( local news j\rnali/s   
7a7 ,9 g5]al ,sub*apt] ,d ( *apt] #ba ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by add+ at ! end ! foll[+ new     
section3  #cace4 ,local news j\rnali/   
comp5sation cr$it  7a7 ,9 g5]al ,9 !    
case ( an eligible local news j\rnali/  
employ]1 !re %all be all[$ z a cr$it    
aga9/ ! taxes impos$ by section         
#caaa7;a7 = ea* cal5d> qu>t] an am\nt   
equal to ! applicable p]c5tage ( wages  
paid by su* employ] to local news       
j\rnali/s = su* cal5d> qu>t]4  7b7      
,limitations & refundability  7#a7      
,wages tak5 into acc\nt ,! am\nt ( wages
 paid ) respect to any individual :i*   
may be tak5 into acc\nt "u subsection   
7a7 dur+ any cal5d> qu>t] by ! eligible 
local news j\rnali/ employ] %all n exce$
 #ab1ejj4  7#b7 ,cr$it limit$ to        
employm5t taxes ,! cr$it all[$ by       

subsection 7a7 ) respect to any cal5d>  
qu>t] %all n exce$ ! applicable         
employm5t taxes 7r$uc$ by any cr$its    
all[$ "u subsections 7e7 & 7f7 ( section
 #caaa1 section #caca1 #cacb1 & #cacd7  
on ! wages paid ) respect to ! employm5t
 ( all ! employees ( ! eligible local   
news j\rnali/ employ] = su* cal5d>      
qu>t]4  7#c7 ,refundability ( excess    
cr$it ,if ! am\nt ( ! cr$it "u          
subsection 7a7 exce$s ! limitation (    
p>agraph 7#b7 = any cal5d> qu>t]1 su*   
excess %all be treat$ z an ov]paym5t t  
%all be refund$ "u sections #fdjb7;a7 & 
#fdac7;b74  7c7 ,def9itions ,= purposes 
( ?is section-- 7#a7 ,applicable        
p]c5tage ,! t]m applicable p]c5tage     
means-- 7,a7 9 ! case ( ea* ( ! fir/ #d 
cal5d> qu>t]s to :i* ?is section        
applies1 #ej p]c5t1 &  7,b7 9 ! case (  
ea* cal5d> qu>t] !reaft]1 #cj p]c5t4    
7#b7 ,eligible local news j\rnali/      
employ]  7,a7 ,9 g5]al ,! t]m eligible  
local news j\rnali/ employ] means1 )    
respect to any cal5d> qu>t]1 any employ]

 :i*-- 7i7 is-- 7,i7 an eligible local  
newspap] publi%]1  7,,ii7 an eligible   
digital news organization1  7,,iii7 a   
broadca/ /ation1 or  7,,iv7 a public    
broadca/+ entity1 &  7ii7 employs local 
news j\rnali/s4  7,b7 ,eligible local   
newspap] publi%] ,! t]m eligible local  
newspap] publi%] means1 ) respect to any
 cal5d> qu>t]1 any employ] if           
sub/antially all ( ! gross receipts (   
su* employ] = su* cal5d> qu>t] are d]iv$
 9 ! trade or bus9ess ( publi%+ local   
newspap]s 7z def9$ 9 section            
#be;,e7d77#a774  7,c7 ,eligible digital 
news organization ,! t]m eligible       
digital news organization means a       
digital in=mation cont5t provid] :i* is 
engag$ 9 ! creation ( orig9al local or  
regional news & in=mation4  7,d7        
,broadca/ /ation ,! t]m broadca/ /ation 
has ! mean+ giv5 su* t]m "u section #c (
 ! ,communications ,act ( #aicd 7#dg    
,u4,s4,c4 #aec74  7,e7 ,public broadca/+
 entity ,! t]m public broadca/+ entity  
has ! mean+ giv5 su* t]m "u section     

#cig7aa7 ( ! ,communications ,act (     
#aicd 7#dg ,u4,s4,c4 #cig7aa774  7#c7   
,local news j\rnali/ ,! t]m local news  
j\rnali/ means-- 7,a7 ) respect to any  
eligible local newspap] publi%] = any   
cal5d> qu>t]1 any individual :o provides
 at lea/ #ajj h\rs ( s]vice dur+ su*    
qu>t] 9 ! ga!r+1 collect+1 photograph+1 
record+1 writ+1 or report+ news or      
in=mation t conc]ns local ev5ts or o!r  
matt]s ( local public int]e/ dur+ su*   
cal5d> qu>t] to su* employ]1 &  7,b7 )  
respect to any eligible digital news    
organization1 broadca/ /ation1 or public
 broadca/+ entity = any cal5d> qu>t]1   
any individual :o provides at lea/ #ajj 
h\rs ( s]vice dur+ su* qu>t] 9 ! orig9al
 report+1 ga!r+1 collect+1 writ+1 edit+1
 produc+1 v]ification1 record+1         
photograph+1 pres5tation1 design1 or    
te*nology support ( news or in=mation t 
conc]ns regional or local ev5ts or o!r  
matt]s ( regional or local public       
int]e/4  7#d7 ,o!r t]ms ,any t]m us$ 9  
?is section :i* is also us$ 9 ?is *apt] 

%all h ! same mean+ z :5 us$ 9 su*      
*apt]4  7d7 ,aggregation rule  7#a7 ,9  
g5]al ,all p]sons treat$ z a s+le       
employ] "u subsection 7a7 or 7b7 (      
section #eb1 or subsection 7m7 or 7o7 ( 
section #dad1 %all be treat$ z "o       
employ] = purposes ( ?is section4  7#b7 
,exception ,p>agraph 7#a7 %all n apply  
unless su* p]sons are involv$ 9 !       
production ( ! same pr9t or digital     
publication4  7e7 ,c]ta9 rules ,to apply
 ,= purposes ( ?is section1 rules simil>
 to ! rules ( sections #ea7;i77#a7 &    
#bhj;,c7a7 %all apply4  7f7 ,c]ta9      
gov]nm5tal employ]s  7#a7 ,9 g5]al ,?is 
cr$it %all n apply to ! ,gov]nm5t ( !   
,unit$ ,/ates1 ! gov]nm5t ( any ,/ate or
 political subdivision !re(1 or any     
ag5cy or in/rum5tality ( any ( ! =ego+4 
7#b7 ,exception ,p>agraph 7#a7 %all n   
apply to any public broadca/+ entity 7z 
def9$ 9 section #cig7aa7 ( !            
,communications ,act ( #aicd 7#dg       
,u4,s4,c4 #cig7aa7774  7g7 ,election ,to
 h section n apply ,?is section %all n  

apply ) respect to any eligible local   
news j\rnali/ employ] = any cal5d> qu>t]
 if su* p]son elects 7at su* "t & 9 su* 
mann] z ! ,secret>y may prescribe7 n to 
h ?is section apply4  7h7 ,special rules
  7#a7 ,employee n tak5 into acc\nt m   
?an once ,an employee %all n be includ$ 
= purposes ( ?is section = any p]iod )  
respect to any employ] if su* employ] is
 all[$ a cr$it "u section #ea ) respect 
to su* employee = su* p]iod4  7#b7      
,d5ial ( d\ble b5efit ,any wages tak5   
into acc\nt 9 det]m9+ ! cr$it all[$ "u  
?is section %all n be tak5 into acc\nt =
 purposes ( det]m9+ ! cr$it all[$ "u    
section #de,s4  7#c7 ,?ird-p>ty payors  
,any cr$it all[$ "u ?is section %all be 
treat$ z a cr$it describ$ 9 section     
#ceaa7;d77#b7 ( su* ,code4  7i7         
,treatm5t ( deposits ,! ,secret>y %all  
waive any p5alty "u section #ffef = any 
failure to make a deposit ( any         
applicable employm5t taxes if !         
,secret>y det]m9es t su* failure 0 due  
to ! reasonable anticipation ( ! cr$it  

all[$ "u ?is section4  7j7 ,ext5sion (  
,limitation on ,assessm5t ,not)/&+      
section #feja1 ! limitation on ! "t     
p]iod = ! assessm5t ( any am\nt         
attributable to a cr$it claim$ "u ?is   
section %all n expire be=e ! date t is  
#e ye>s aft] ! lat] (-- 7#a7 ! date on  
:i* ! orig9al return :i* includes !     
cal5d> qu>t] ) respect to :i* su* cr$it 
is det]m9$ is fil$1 or  7#b7 ! date on  
:i* su* return is treat$ z fil$ "u      
section #feja7;b77#b74  7k7 ,regulations
 & guidance ,! ,secret>y %all issue su* 
=ms1 in/ructions1 regulations1 &        
guidance z are necess>y-- 7#a7 to all[ !
 advance paym5t ( ! cr$it "u subsection 
7a71 subject to ! limitations provid$ 9 
?is section1 bas$ on su* in=mation z !  
,secret>y %all require1  7#b7 to provide
 = ! reconciliation ( su* advance paym5t
 ) ! am\nt advanc$ at ! "t ( fil+ !     
return ( tax = ! applicable cal5d> qu>t]
 or taxable ye>1  7#c7 ) respect to !   
application ( ! cr$it "u subsection 7a7 
to ?ird-p>ty payors 7includ+ pr(essional

 employ] organizations1 c]tifi$         
pr(essional employ] organizations1 or   
ag5ts "u section #cejd71 includ+        
regulations or guidance all[+ su* payors
 to submit docum5tation necess>y to     
sub/antiate ! eligible employ] /atus (  
employ]s t use su* payors1 &  7#d7 to   
prev5t ! avoidance ( ! purposes ( !     
limitations "u ?is section4  ,any =ms1  
in/ructions1 regulations1 or o!r        
guidance describ$ 9 p>agraph 7#c7 %all  
require ! cu/om] to be responsible = !  
acc\nt+ ( ! cr$it & = any liability =   
improp]ly claim$ cr$its & %all require !
 c]tifi$ pr(essional employ]            
organization or o!r ?ird-p>ty payor to  
accurately report su* tax cr$its bas$ on
 ! in=mation provid$ by ! cu/om]4  7l7  
,application ,?is section %all only     
apply to wages paid 9 cal5d> qu>t]s     
beg9n+ aft] ! date ( ! enactm5t ( ?is   
section & beg9n+ be=e ! date t is #e    
ye>s aft] ! fir/ day ( ! fir/ cal5d>    
qu>t] to :i* ?is section applies4  4    
7b7 ,refunds ,p>agraph 7#b7 ( section   

#acbd7;b7 ( title #ca1 ,unit$ ,/ates    
,code1 is am5d$ by ins]t+ #cace1 aft]   
#cacd14  7c7 ,cl]ical am5dm5t ,! table (
 sections = sub*apt] ,d ( *apt] #ba ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+3  ,sec4 #cace4
 ,local news j\rnali/ comp5sation cr$it4
  4  7d7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to cal5d>
 qu>t]s beg9n+ aft] ! date ( ! enactm5t 
( ?is ,act4  #d4 ,cr$it = adv]tis+ 9    
local newspap]s & local m$ia  7a7 ,9    
g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new section3  #de,u4 ,adv]tis+ 9 
local newspap]s & local m$ia  7a7 ,9    
g5]al ,= purposes ( section #ch1 9 !    
case ( any eligible small bus9ess1 !    
local m$ia adv]tis+ cr$it det]m9$ "u ?is
 section = any taxable ye> is an am\nt  
equal to ! applicable p]c5tage ( !      
qualifi$ local m$ia adv]tis+ exp5ses    
paid or incurr$ by ! taxpay] dur+ su*   
taxable ye>4  7b7 ,limitation ,! cr$it  

all[$ "u subsection 7a7 to any taxpay] =
 any taxable ye> %all n exce$-- 7#a7 9 !
 case ( ! fir/ taxable ye> to :i* ?is   
section applies1 #e1jjj1 &  7#b7 9 !    
case ( any subsequ5t taxable ye>1       
#b1ejj4  7c7 ,applicable p]c5tage ,=    
purposes ( ?is section1 ! t]m applicable
 p]c5tage means-- 7#a7 9 ! case ( ! fir/
 taxable ye> to :i* ?is section applies1
 #hj p]c5t1 &  7#b7 9 ! case ( any      
subsequ5t taxable ye>1 #ej p]c5t4  7d7  
,eligible small bus9ess ,= purposes (   
?is section1 ! t]m eligible small       
bus9ess means any p]son = any taxable   
ye> if ! av]age numb] ( full-"t         
employees 7z det]m9$ = purposes (       
det]m9+ :e!r an employ] is an applicable
 l>ge employ] = purposes ( section      
#dihj;,h7c77#b7 ( ! ,int]nal ,rev5ue    
,code ( #aihf7 employ$ by su* p]son dur+
 su* taxable ye> 0 less ?an #ej4  7e7   
,qualifi$ local m$ia adv]tis+ exp5ses ,=
 purposes ( ?is section-- 7#a7 ,9 g5]al 
,! t]m qualifi$ local m$ia adv]tis+     
exp5ses means am\nts paid or incurr$ 9 !

 ord9>y c\rse ( a trade or bus9ess =    
adv]tis+-- 7,a7 9 a local newspap] 7z   
def9$ 9 section #be;,e7d771 or  7,b7    
?r\gh a broadca/ (1 or 9 ! digital      
cont5t or digital publications (1 a     
local radio or television /ation4  7#b7 
,local radio or television /ation ,! t]m
 local radio or television /ation means 
any broadca/ radio or television /ation 
lic5s$ by ! ,f$]al ,communications      
,commission to s]ve a local community4  
7f7 ,special rules  7#a7 ,d5ial ( d\ble 
b5efit ,no d$uction %all be all[$ = any 
qualifi$ local m$ia adv]tis+ exp5ses    
o!rwise all[able z a d$uction = !       
taxable ye> :i* is equal to ! am\nt ( ! 
cr$it det]m9$ = su* taxable ye> "u      
subsection 7a74  7#b7 ,aggregation rule 
,all p]sons treat$ z a s+le employ] "u  
subsection 7a7 or 7b7 ( section #eb ( ! 
,int]nal ,rev5ue ,code ( #aihf1 or      
subsection 7m7 or 7o7 ( section #dad (  
su* ,code1 %all be treat$ z "o employ] =
 purposes ( ?is section4  7g7 ,t]m9ation
 ,no cr$it %all be all[$ "u ?is section 

= any am\nt paid or incurr$ 9 a taxable 
ye> end+ aft] ! close ( #e-ye> p]iod    
beg9n+ on ! date ( ! enactm5t ( ?is     
section4  4  7b7 ,cr$it all[$ z "p (    
g5]al bus9ess cr$it ,section #ch7;b7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ plus at ! end ( p>agraph      
7#cb71 by /rik+ ! p]iod at ! end (      
p>agraph 7#cc7 & ins]t+ 1 plus1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#cd7 9 ! case ( an eligible small      
bus9ess1 ! local m$ia adv]tis+ cr$it    
det]m9$ "u section #de,u7a74  4  7c7    
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,d ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( su* ,code is am5d$ by add+ at
 ! end ! foll[+ new item3  ,sec4 #de,u4 
,adv]tis+ 9 local newspap]s & local     
m$ia4  4  7d7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to am\nts paid or incurr$ 9 taxable ye>s
 beg9n+ aft] ! date ( ! enactm5t ( ?is  
,act4