Illinois Local Journalism Sustainability Act
Beginning on or after Jan. 1, 2025 and before Jan. 1, 2030, the Local Journalism Sustainability Act provides income tax credits for certain news organizations. The act awards $15,000 per qualified journalist employed and paid by the employer during the 12-month period preceding the credit application date. An additional credit of $10,000 is available for each newly hired qualified journalist in the preceding period. Total credits are capped at $150,000 per organization in each calendar year. If the organization is not independently owned or lists a private fund among its beneficial ownership, total credits for all local news organizations that share the same ownership interest are capped at $250,000 per year.
”Local news organizations” are generally news organizations with at least one employee employed for at least 30 hours per week; primarily provides coverage of Illinois or local community news; gathers, writes, or publishes the news for dissemination; and lives within 50 miles of the coverage area. Print organizations must have published at least once in the last year and either hold a United States Postal Service periodical permit or have at least 25% of content dedicated to local news. Digital organizations must have published on the community weekly over the past year and have at least 33% of its digital audience in the state. Qualifying organizations must also not have more than 50% of its gross receipts from political action committees, more than $100,000 total from political action committees, or more than 30% of its revenue from political advertisements during lowest unit windows.
The act caps the $15,000 awards at $4 million per year, and the $10,000 awards at $1 million per year. Eligible organizations must apply for the credit each year.
New York Newspaper and Broadcast Media Jobs Program
Beginning on or after Jan. 1, 2025 and ending before Jan. 1, 2028, New York is offering incentives totaling $90 million, $30 million per year, dedicated to the Newspaper and Broadcast Media Jobs Program. The program is intended to provide financial support for newspaper and broadcast media. The credit has two main components. The first is a new job credit of $5,000 per net new job created at eligible businesses. The second component is a job retention credit of up to 50% of the annual wages of an eligible employee up to $50,000.
To be eligible for the credits, the taxpayer must be a print media or broadcast media business operating predominantly in the newspaper publishing or broadcast media sector; be independently owned, or for print media demonstrate a reduction in circulation or in full time employees of at least 20% over the previous five years; and be located in New York.
Total new job creation credits are capped at $4 million per year and total credits per business are capped at $20,000. Total job retention credits are capped at $26 million per year and total credits per business are capped at $300,000. Additionally, 50% of the retention credit is set aside for business entities with 100 or fewer employees.
Takeaways
The Illinois and New York incentive programs could provide relief to a broad range of media businesses operating in one or both states. However, both programs have nuanced requirements and must be specifically applied for under procedures set forth by the controlling authorities. Taxpayers with questions about these new media-related incentives or new and revised incentives from fiscal year 2025 budgets should reach out to a state credits and incentives specialist for more information.
