It may not be signed into law soon,
but Reps. Ann Kirkpatrick, D-Ariz., and Dan Newhouse, R-Wash. have introduced a bill called the Local Journalism Sustainability Act.
Among other things, the bipartisan measure would
provide tax credits to local newspapers, subscribers and advertisers.
“Local Journalism is a bedrock pillar of communities across the United
States,” Kirkpatrick states. “Unfortunately, journalistic endeavors throughout the country face major economic struggles that put the future of many
publications in serious jeopardy.” COVID-19 has made these problems even more severe, she notes.
The goal is to “make sure these publications can sustain
themselves through this crisis and beyond,” Kirkpatrick adds. The package includes:
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A $250 subscription credit that would cover 80% of costs in the first year.
Subscribers who stick would receive a $500 credit in each of the following four years.
A local journalist compensation credit of $25,000 in the first year, covering 50%
of a $50,000 salary. Then there would be a credit of $15,000 — or 30% — in each of the next four years. The person would have to work 100 hours per quarter to qualify as an
employee.
A $5,000 local newspaper and local media advertising credit, covering an estimated 80% of ad costs in the first year. It would total $2,500, or 50% of costs. To
qualify, a small business would have to spend $6,250 and $5,000 in each of the respective periods.
The newspapers and journalists would have to be focused primarily on
local news to qualify.
Newhouse argues by “providing tax credits for readers and small businesses and by empowering our local journalists, we can begin to help
our small newspapers remain resilient and continue to provide in-depth perspectives that inform their readership regarding local current events.”
Dean Ridings, CEO of
America’s Newspapers, adds: “The Local Journalism Sustainability Act will provide meaningful assistance as newspapers seek to provide information in new ways to meet the needs of
their audience.”