Community News and Small Business Support Act

Bill Number

H.R. 1753

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-02-27: Referred to the House Committee on Ways and Means.

Last Updated

2026-05-13T20:00:12Z

AI-Generated Summary

Purpose of the Legislation

The "Community News and Small Business Support Act" (H.R. 1753) aims to bolster local media outlets, particularly newspapers and broadcasters, by offering tax credits to small businesses for advertising in these outlets and to media employers for paying local news journalists. This is intended to encourage investment in community journalism and support small business growth through tax relief.

Key Provisions

• Advertising Credit for Small Businesses (New Section 45BB of the Internal Revenue Code):
• Provides a tax credit as part of the general business credit for eligible small businesses (those with fewer than 50 full-time employees on average).
• Credit equals 80% of qualified advertising expenses in the first applicable tax year (capped at $5,000 total credit) and 50% in later years (capped at $2,500 total credit).
• Qualified expenses include costs for advertising or sponsorships in local newspapers or on local broadcast radio/television stations licensed by the Federal Communications Commission (FCC) to serve a specific community.
• "Local newspaper" is defined as a print or digital publication with original news content from primary sources, focused on regional or local events, employing at least one full-time local news journalist (who lives in the community and covers local issues), having no more than 750 employees, and excluding certain nonprofits, political organizations, or entities heavily funded by them.
• No double-dipping: Expenses used for the credit cannot also be deducted from taxes.
• Aggregation rules treat related companies as one entity to prevent abuse.
• Applies to expenses after enactment; expires after 5 years.

• Payroll Credit for Local News Journalists (New Section 3135 of the Internal Revenue Code):
• Offers a credit against employment taxes (Social Security taxes paid by employers) for eligible media employers whose main business is publishing local newspapers (as defined above).
• Credit covers 50% of wages for the first four calendar quarters after enactment, then 30% thereafter, for up to 1,500 local news journalists per employer and up to $12,500 in wages per journalist per quarter.
• A "local news journalist" must provide at least 200 hours of service per quarter gathering, editing, or reporting on local news.
• Credit is limited to the employer's total employment taxes for the quarter (after other credits) but is refundable if it exceeds that amount, meaning the government pays out the difference.
• Excludes government employers (federal, state, or local) and allows employers to opt out.
• Prevents double benefits by excluding wages used here from other tax credits (e.g., for research or apprenticeships).
• Includes rules for third-party payroll providers and waives penalties for under-depositing taxes if due to expecting this credit.
• Applies to quarters after enactment; expires after 5 years.

Significant Changes to Existing Law

• Adds two new tax credit sections to the Internal Revenue Code: one in the business credits subpart (Section 45BB) and one in the employment taxes subpart (Section 3135).
• Integrates the advertising credit into the existing general business credit framework (Section 38), expanding available incentives.
• Updates clerical elements, such as tables of contents and references to refundable credits in federal law (31 U.S.C. § 1324).
• Introduces time-limited (5-year) provisions, definitions for "local media" and "local news journalists," and anti-abuse measures like employee caps and aggregation rules, which do not exist in current law for media-specific incentives.

Potential Impacts

• On Citizens and Businesses: Small businesses gain tax savings on local advertising, potentially increasing their visibility and supporting economic activity in communities. Local media outlets could see more revenue from ads and easier hiring/retention of journalists, helping sustain community news amid declining traditional media.
• On Government Agencies: The Internal Revenue Service (IRS) will administer these credits, including verifying eligibility, processing refunds, and issuing guidance to prevent fraud (e.g., via regulations on third-party payors). This may increase administrative workload and costs, with extended audit periods (up to 5 years) for claims.
• On International Relations: No direct impact, as the bill focuses on domestic tax policy and U.S.-based local media.
• Broader effects could include revitalizing local journalism, reducing "news deserts" in underserved areas, but the 5-year limit may create uncertainty for long-term planning.

Main Stakeholders Affected

• Small Businesses: Primary beneficiaries of the advertising credit, especially those advertising locally to reach community audiences.
• Local Media Outlets: Newspapers, radio, and TV stations serving specific regions, which gain from increased ad revenue and payroll relief for hiring journalists.
• Local News Journalists: Employees who cover community stories, benefiting indirectly through job stability and wage support.
• U.S. Treasury and IRS: Responsible for implementing, enforcing, and funding the credits (via reduced tax revenue).
• Excluded Entities: Certain nonprofits, political groups, and government media operations cannot participate, limiting their involvement.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes clear eligibility criteria to avoid subsidizing non-local or partisan media, with aggregation and anti-abuse rules (e.g., under existing Sections 52 and 414) to ensure fairness. Refundable credits could strain federal budgets if widely claimed, and the 5-year extension for tax assessments aids enforcement but may increase compliance burdens.
• Constitutional: Supports the free press under the First Amendment by incentivizing local journalism without direct government control or censorship, though exclusions for political organizations could raise questions about viewpoint neutrality (unlikely to be challenged as it's a tax incentive, not a mandate).
• Political: As a bipartisan bill (introduced by Reps. Tenney and DelBene), it addresses media sustainability—a nonpartisan issue—but the temporary nature may spark debates on renewal, funding priorities, and whether it favors certain media over digital or national outlets. No overt bias, but it could influence elections by bolstering local coverage.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Tenney, Claudia [R-NY-24]

Cosponsors (9)

Rep. DelBene, Suzan K. [D-WA-1], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. Neguse, Joe [D-CO-2], Rep. Magaziner, Seth [D-RI-2], Rep. Malliotakis, Nicole [R-NY-11], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Lawler, Michael [R-NY-17], Rep. Pappas, Chris [D-NH-1], Rep. Keating, William R. [D-MA-9]

Recent Actions

• 2025-02-27: Referred to the House Committee on Ways and Means.
• 2025-02-27: Introduced in House
• 2025-02-27: Introduced in House

Bill Versions

• Community News and Small Business Support Act — issued 2025-02-27 — PDF (14 pages)