Local news organizations could claim tax credits for journalist wages

Eligible owners and local news organizations could claim income tax credits equal to 30% of eligible journalist wages. An owner claiming the personal income tax credit must own a local news organization and must not be another person's dependent. A journalist must live within 50 miles of the assigned coverage area and work for the organization for at least 25% of the tax year. Owners must not be another taxpayer's dependent; the news organization and journalist must meet the definitions in the bill. A credit is limited to 75 journalists per taxpayer, one credit per journalist each tax year, and a combined $4 million annual cap; applications are handled in the order received. Any credit above the taxpayer's tax liability is refundable. The credits would apply to tax years beginning on or after January 1, 2026, and only for tax years before January 1, 2031.

The credit would count only compensation paid through the organization's payroll, up to $50,000 per journalist; benefits and the employer's payroll-related contributions do not count. This limit applies to each journalist employed by a qualifying local news organization. Eligible compensation includes amounts the journalist defers or directs to a 401(k) or cafeteria plan. The $50,000 limit is a ceiling on wages counted for the credit, not a limit on the journalist's total pay. The wage limit would apply to tax years beginning on or after January 1, 2026, and before January 1, 2031.