Community News Act gets legs
By Gretchen A. Peck, for Editor & Publisher
There is renewed federal-level interest in the free press and preserving local news nationwide.
Last week, the U.S. House Judiciary Committee unaanimously voted to pass the Protect Reporters from Exploitative State Spying Act, or the PRESS Act.
This bill prohibits the federal government from compelling journalists and providers of telecommunications services (e.g., phone and internet companies) to disclose certain protected information, except in limited circumstances such as to prevent terrorism or imminent violence.
In addition, the Community News and Small Business Support Act (H.R.4756) was introduced by Rep. Claudia Tenney (R-NY) and co-sponsor Suzan DelBene (D-WA).
Some of the language here will be familiar to news publishers who followed along as the former Congressional class considered the Local Journalism Sustainability Act (LJSA).
The proposed legislation takes a two-pronged tax-credit approach aimed at strengthening local newsrooms around the country and supporting small businesses that advertise with them.
H.R.4756 would provide payroll tax credits to news media publishers who employ fewer than 750 — a legislative line in the sand that advocates suggest will exclude large national media companies and focus this legislative keenly on local and community news producers.
To be eligible, news outlets must create original content that serves the needs of a regional or local community; they must have at least one local journalist on staff; and they cannot be owned or funded by a Political Action Committee (PAC) or 501c4.
Eligible news organizations may apply for a tax credit of up to $25,000 per local journalist in the first year and up to $15,000 in the following four years.
Small businesses that advertise with local news outlets, including print, digital, radio and broadcast news — would be eligible for tax credits, as well — up to $5,000 in the bill’s first year and up to $2,500 in the subsequent four years.
The bill imposes some restrictions on small businesses that qualify.
They must be a business of fewer than 50 employees, and they must be advertising with a news outlet with at least one local reporter on staff (and no more than 750 employees total); and in the case of TV and radio, they must be FCC licensed.
The Community News and Small Business Support Act has the endorsement of more than a dozen state press associations, including the Kansas Press Association, America’s Newspapers, The NewsGuild-CWA, Rebuild Local News, The Lenfest Institute for Journalism, The American Journalism Project, The National Association of Hispanic Publications, The Afro-American Newspapers, PEN America and a growing list of news media publishers.
“We applaud Reps. Tenney and DelBene for introducing the Community News and Small Business Support Act and putting the needs of local communities first by supporting local news publishers, who provide critical journalism and information to Americans across the country,” said News/Media Alliance President & CEO Danielle Coffey in a statement shared with E&P.
“Without vital support, such as tax credits for publishers and local businesses, publishers will not have the resources to continue investing in providing news and news deserts will continue to grow, making quality local journalism increasingly inaccessible to those who need it and allowing harmful mis- and disinformation to promulgate.”