[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4756 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4756

          To provide tax incentives that support local media.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 19, 2023

Ms. Tenney (for herself and Ms. DelBene) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
          To provide tax incentives that support local media.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community News and Small Business 
Support Act''.

SEC. 2. CREDIT FOR ADVERTISING IN LOCAL MEDIA.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45BB. ADVERTISING IN LOCAL MEDIA.

    ``(a) In General.--For purposes of section 38, in the case of any 
eligible small business, the local media advertising credit determined 
under this section for any taxable year is an amount equal to the 
applicable percentage of the qualified local media advertising expenses 
paid or incurred by the taxpayer during such taxable year.
    ``(b) Limitation.--The credit allowed under subsection (a) to any 
taxpayer for any taxable year shall not exceed--
            ``(1) in the case of the first taxable year to which this 
        section applies, $5,000, and
            ``(2) in the case of any subsequent taxable year, $2,500.
    ``(c) Applicable Percentage.--For purposes of this section, the 
term `applicable percentage' means--
            ``(1) in the case of the first taxable year to which this 
        section applies, 80 percent, and
            ``(2) in the case of any subsequent taxable year, 50 
        percent.
    ``(d) Eligible Small Business.--For purposes of this section, the 
term `eligible small business' means any person for any taxable year if 
the average number of full-time employees (as determined for purposes 
of determining whether an employer is an applicable large employer for 
purposes of section 4980H(c)(2) of the Internal Revenue Code of 1986) 
employed by such person during such taxable year was less than 50.
    ``(e) Qualified Local Media Advertising Expenses.--For purposes of 
this section, the term `qualified local media advertising expenses' 
means amounts paid or incurred in the ordinary course of a trade or 
business for--
            ``(1) advertising in a local newspaper, or
            ``(2) advertising on any broadcast radio or television 
        station licensed by the Federal Communications Commission to 
        serve a local community.
For purposes of this subsection, the term `advertising' includes 
sponsorships.
    ``(f) Local Newspaper.--For purposes of this section--
            ``(1) In general.--The term `local newspaper' means any 
        print or digital publication if--
                    ``(A) the primary content of such publication is 
                original content derived from primary sources and 
                relating to news and current events,
                    ``(B) such publication primarily serves the needs 
                of a regional or local community,
                    ``(C) the publisher of such publication--
                            ``(i) employs at least one full-time local 
                        news journalist who resides in such regional or 
                        local community,
                            ``(ii) employs not greater than 750 
                        employees, and
                            ``(iii) is not--
                                    ``(I) an organization described in 
                                paragraph (4), (5), or (6) of section 
                                501(c),
                                    ``(II) a political organization (as 
                                defined in section 527(e)),
                                    ``(III) any organization controlled 
                                by one or more organizations described 
                                in subclauses (I) or (II), or
                                    ``(IV) any organization that 
                                received more than $100,000 (in the 
                                aggregate) from organizations described 
                                in subclauses (I), (II), or (III) 
                                during the taxable year or any 
                                preceding taxable year.
            ``(2) Local news journalist.--For purposes of paragraph 
        (1)(C)(i), the term `local news journalist' means any 
        individual who regularly gathers, prepares, produces, collects, 
        edits, photographs, records, directs the recording of, writes, 
        presents, or reports news or information that concerns local 
        events or other matters of local public interest.
            ``(3) Aggregation rule.--
                    ``(A) In general.--For purposes of clauses (ii) and 
                (iii) of paragraph (1)(C), all persons treated as a 
                single employer under subsection (a) or (b) of section 
                52, or subsection (m) or (o) of section 414, shall be 
                treated as one person.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                unless such persons are involved in the production of 
                the same print or digital publication.
            ``(4) Continuous qualification.--The requirements of 
        paragraph (1)(C) shall not be treated as met unless such 
        requirements are met at all times during the period beginning 
        on the date which is 1 year before the date of the enactment of 
        this section and ending on the date that the subscription 
        described in subsection (a) is paid or incurred.
    ``(g) Special Rules.--
            ``(1) Denial of double benefit.--No deduction shall be 
        allowed for any qualified local media advertising expenses 
        otherwise allowable as a deduction for the taxable year which 
        is equal to the amount of the credit determined for such 
        taxable year under subsection (a).
            ``(2) Aggregation rule.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 of the 
        Internal Revenue Code of 1986, or subsection (m) or (o) of 
        section 414 of such Code, shall be treated as one person for 
        purposes of applying subsection (b).
    ``(h) Termination.--No credit shall be allowed under this section 
for any amount paid or incurred in a taxable year ending after the 
close of 5-year period beginning on the date of the enactment of this 
section.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) of such Code is amended by striking ``plus'' at the end of 
paragraph (40), by striking the period at the end of paragraph (41) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(42) in the case of an eligible small business, the local 
        media advertising credit determined under section 45BB(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45BB. Advertising in local media.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 3. PAYROLL CREDIT FOR COMPENSATION OF LOCAL NEWS JOURNALIST.

    (a) In General.--Subchapter D of chapter 21 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 3135. LOCAL NEWS JOURNALIST COMPENSATION CREDIT.

    ``(a) In General.--In the case of an eligible local news journalist 
employer, there shall be allowed as a credit against applicable 
employment taxes for each calendar quarter an amount equal to the 
applicable percentage of the wages paid by such employer to local news 
journalists for such calendar quarter.
    ``(b) Limitations and Refundability.--
            ``(1) Limitation on number of local news journalists taken 
        into account.--The number of employees of any eligible local 
        news journalist employer which are taken into account as local 
        news journalists under subsection (a) for any calendar quarter 
        shall not exceed 1,500.
            ``(2) Limitation on wages taken into account.--The amount 
        of wages paid with respect to any individual which may be taken 
        into account under subsection (a) during any calendar quarter 
        by the eligible local news journalist employer shall not exceed 
        $12,500.
            ``(3) Credit limited to employment taxes.--The credit 
        allowed by subsection (a) with respect to any calendar quarter 
        shall not exceed the applicable employment taxes (reduced by 
        any credits allowed under sections 3131, 3132, and 3134) on the 
        wages paid with respect to the employment of all the employees 
        of the eligible local news journalist employer for such 
        calendar quarter.
            ``(4) Refundability of excess credit.--If the amount of the 
        credit under subsection (a) exceeds the limitation of paragraph 
        (3) for any calendar quarter, such excess shall be treated as 
        an overpayment that shall be refunded under sections 6402(a) 
        and 6413(b).
    ``(c) Definitions.--For purposes of this section--
            ``(1) Applicable percentage.--The term `applicable 
        percentage' means--
                    ``(A) in the case of each of the first 4 calendar 
                quarters to which this section applies, 50 percent; and
                    ``(B) in the case of each calendar quarter 
                thereafter, 30 percent.
            ``(2) Eligible local news journalist employer.--The term 
        `eligible local news journalist employer' means, with respect 
        to any calendar quarter, any employer if substantially all of 
        the gross receipts of such employer for such calendar quarter 
        are derived in the trade or business of publishing local 
        newspapers (as defined in section 45BB(f)).
            ``(3) Local news journalist.--The term `local news 
        journalist' means, with respect to any eligible local news 
        journalist employer for any calendar quarter, any individual 
        who provides at least 200 hours of service as a local news 
        journalist (as defined in section 45BB(f)(2)) during such 
        calendar quarter to such eligible local news journalist 
        employer.
            ``(4) Applicable employment taxes.--The term `applicable 
        employment taxes' means the following:
                    ``(A) The taxes imposed under section 3111(b).
                    ``(B) So much of the taxes imposed under section 
                3221(a) as are attributable to the rate in effect under 
                section 3111(b).
    ``(d) Aggregation Rule.--
            ``(1) In general.--All persons treated as a single employer 
        under subsection (a) or (b) of section 52 of the Internal 
        Revenue Code of 1986, or subsection (m) or (o) of section 414 
        of such Code, shall be treated as one employer for purposes of 
        this section.
            ``(2) Exception.--Paragraph (1) shall not apply unless such 
        persons are involved in the production of the same print or 
        digital publication.
    ``(e) Certain Rules to Apply.--For purposes of this section--
            ``(1) In general.--Rules similar to the rules of sections 
        51(i)(1) and 280C(a) of the Internal Revenue Code of 1986 shall 
        apply.
            ``(2) Exception to related party rules.--In the case of an 
        eligible local news journalist employer which employs fewer 
        than 15 local news journalists during the calendar quarter, 
        paragraph (1) shall be applied without regard to the reference 
        to section 51(i)(1).
    ``(f) Certain Governmental Employers.--This credit shall not apply 
to the Government of the United States, the government of any State or 
political subdivision thereof, or any agency or instrumentality of any 
of the foregoing.
    ``(g) Election to Have Section Not Apply.--This section shall not 
apply with respect to any eligible local news journalist employer for 
any calendar quarter if such person elects (at such time and in such 
manner as the Secretary may prescribe) not to have this section apply.
    ``(h) Special Rules.--
            ``(1) Employee not taken into account more than once.--An 
        employee shall not be included for purposes of this section for 
        any period with respect to any employer if such employer is 
        allowed a credit under section 51 of the Internal Revenue Code 
        of 1986 with respect to such employee for such period.
            ``(2) Denial of double benefit.--Any wages taken into 
        account in determining the credit allowed under this section 
        shall not be taken into account for purposes of determining the 
        credit allowed under section 41, 45A, 45P, 45S, or 1396.
            ``(3) Third-party payors.--Any credit allowed under this 
        section shall be treated as a credit described in section 
        3511(d)(2).
            ``(4) Treatment of deposits.--The Secretary shall waive any 
        penalty under section 6656 of the Internal Revenue Code of 1986 
        for any failure to make a deposit of any applicable employment 
        taxes if the Secretary determines that such failure was due to 
        the reasonable anticipation of the credit allowed under this 
        section.
            ``(5) Extension of limitation on assessment.--
        Notwithstanding section 6501, the limitation on the time period 
        for the assessment of any amount attributable to a credit 
        claimed under this section shall not expire before the date 
        that is 5 years after the later of--
                    ``(A) the date on which the original return which 
                includes the calendar quarter with respect to which 
                such credit is determined is filed, or
                    ``(B) the date on which such return is treated as 
                filed under section 6501(b)(2).
    ``(i) Regulations and Guidance.--The Secretary shall issue such 
forms, instructions, regulations, and guidance as are necessary--
            ``(1) with respect to the application of the credit under 
        subsection (a) to third-party payors (including professional 
        employer organizations, certified professional employer 
        organizations, or agents under section 3504 of the Internal 
        Revenue Code of 1986), including regulations or guidance 
        allowing such payors to submit documentation necessary to 
        substantiate the eligible employer status of employers that use 
        such payors, and
            ``(2) to prevent the avoidance of the purposes of the 
        limitations under this section, including through the leaseback 
        of employees.
Any forms, instructions, regulations, or other guidance described in 
paragraph (2) shall require the customer to be responsible for the 
accounting of the credit and for any liability for improperly claimed 
credits and shall require the certified professional employer 
organization or other third party payor to accurately report such tax 
credits based on the information provided by the customer.
    ``(j) Application.--This section shall not apply to any calendar 
quarter beginning more than 5 years after the date of the enactment of 
this section.''.
    (b) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``3135,'' after ``3134,''.
            (2) The table of sections for subchapter D of chapter 21 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following:

``Sec. 3135. Local news journalist compensation credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar quarters beginning after the date of the enactment of 
this Act.
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