Small Business Ad Kit: Other Bills

The Federal Language

The Community News & Small Business Support Act

“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.

The State Language

Wisconsin

“This bill creates an income and franchise tax credit for businesses that purchase advertising in local media outlets. The credit equals 50 percent of the advertising expenditures, limited to a maximum credit of $5,000. The credit may be claimed only by businesses with fewer than 100 full-time employees and less than $10,000,000 in revenue. The bill defines “local media outlet” to mean a newspaper in Wisconsin that has at least 25 percent news content, a broadcast radio or television station that is licensed by the Federal Communications Commission to serve a local community in Wisconsin, or a Wisconsin-based Internet site that is meant to inform users of news and events in a local community in Wisconsin.

Under the bill, if the business deducted the advertising expenditures under federal law, the business must add the amount deducted to its Wisconsin income in order to claim the credit. The bill provides that the credit may be claimed only for taxable years beginning after December 31, 2021, and before January 1, 2027. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 71.05 (6) (a) 30. of the statutes is created to read:

71.05 (6) (a) 30. For a taxpayer claiming the credit under s. 71.07 (4t), the expenditures taken into account to claim the credit under s. 71.07 (4t) if the expenditures were deducted under the Internal Revenue Code.

Section 2 . 71.07 (4t) of the statutes is created to read:

71.07 (4t) Local media advertising tax credit.

(a) Definitions. In this subsection:

“Claimant” means an individual who, in the taxable year to which the claim under this subsection relates, operates a business that has fewer than 100 full-time employees and less than $10,000,000 in revenue.
“Local media outlet” means any of the following:

a. A newspaper in this state that has at least 25 percent news content.

b. A broadcast radio or television station that is licensed by the federal communications commission to serve a local community in this state.

c. An Internet site based in this state that is meant to inform users of news and events in a local community in this state.

(b) Filing claims. For taxable years beginning after December 31, 2021, and before January 1, 2027, a claimant may claim as a credit against the taxes imposed under s. 71.02, up to the amount of the tax, an amount equal to 50 percent of the expenditures paid or incurred in the taxable year by the claimant in the ordinary course of a trade or business for advertising in a local media outlet.

(c) Limitations. 1. The maximum amount of expenditures that may be taken into account under par. (b) in a taxable year is $10,000.

Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.
No credit may be claimed under this subsection unless the claimant makes the adjustment under s. 71.05 (6) (a) 30. in the taxable year to which the claim relates.

(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

Section 3 . 71.10 (4) (ct) of the statutes is created to read:

71.10 (4) (ct) Local media advertising tax credit under s. 71.07 (4t).

Section 4 . 71.26 (3) (e) 5. of the statutes is created to read:

71.26 (3) (e) 5. For a taxpayer claiming the credit under s. 71.28 (4t), so that the expenditures taken into account to claim the credit under s. 71.28 (4t) may not be deducted as provided under the Internal Revenue Code.

Section 5 . 71.28 (4t) of the statutes is created to read:

71.28 (4t) Local media advertising tax credit. (a) Definitions. In this subsection:

“Claimant” means a corporation that, in the taxable year to which the claim under this subsection relates, has fewer than 100 full-time employees and less than $10,000,000 in revenue.
“Local media outlet” means any of the following:

a. A newspaper in this state that has at least 25 percent news content.

b. A broadcast radio or television station that is licensed by the federal communications commission to serve a local community in this state.

c. An Internet site based in this state that is meant to inform users of news and events in a local community in this state.

(b) Filing claims. For taxable years beginning after December 31, 2021, and before January 1, 2027, a claimant may claim as a credit against the taxes imposed under s. 71.23, up to the amount of the tax, an amount equal to 50 percent of the expenditures paid or incurred in the taxable year by the claimant in the ordinary course of a trade or business for advertising in a local media outlet.

(c) Limitations. 1. The maximum amount of expenditures that may be taken into account under par. (b) in a taxable year is $10,000.

Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.
No credit may be claimed under this subsection unless the claimant makes the adjustment under s. 71.26 (3) (e) 5. in the taxable year to which the claim relates.

(d) Administration. Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

Section 6 . 71.30 (3) (ct) of the statutes is created to read:

71.30 (3) (ct) Local media advertising tax credit under s. 71.28 (4t). Section 7 . 71.45 (2) (a) 24. of the statutes is created to read:

71.45 (2) (a) 24. For a taxpayer claiming the credit under s. 71.47 (4t), by adding to federal taxable income the expenditures taken into account to claim the credit under s. 71.47 (4t) that were deducted under the Internal Revenue Code.

Section 8 . 71.47 (4t) of the statutes is created to read:

71.47 (4t) Local media advertising tax credit. (a) Definitions. In this subsection:

“Claimant” means a corporation that, in the taxable year to which the claim under this subsection relates, has fewer than 100 full-time employees and less than $10,000,000 in revenue.
“Local media outlet” means any of the following:

a. A newspaper in this state that has at least 25 percent news content.

b. A broadcast radio or television station that is licensed by the federal communications commission to serve a local community in this state.

c. An Internet site based in this state that is meant to inform users of news and events in a local community in this state.

(b) Filing claims. For taxable years beginning after December 31, 2021, and before January 1, 2027, a claimant may claim as a credit against the taxes imposed under s. 71.43, up to the amount of the tax, an amount equal to 50 percent of the expenditures paid or incurred in the taxable year by the claimant in the ordinary course of a trade or business for advertising in a local media outlet.

(c) Limitations. 1. The maximum amount of expenditures that may be taken into account under par. (b) in a taxable year is $10,000.

Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of amounts under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. The partners, members, and shareholders may claim the credit in proportion to their ownership interests.
No credit may be claimed under this subsection unless the claimant makes the adjustment under s. 71.45 (2) (a) 24. in the taxable year to which the claim relates.

(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

Section 9 . 71.49 (1) (ct) of the statutes is created to read:

71.49 (1) (ct) Local media advertising tax credit under s. 71.47 (4t).

Additional Resources:

Press coverage:

Colorado

The bill requires all state departments to spend at least 50% of the money they spend on advertising to Colorado residents in a fiscal year on advertising through local newspapers. The bill further requires all departments to report on their advertising spending during their annual “State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act” presentations.

The bill also creates an income tax credit for supporting local newspapers. For income tax years beginning on or after January 1, 2023, but before January 1, 2033:

A taxpayer is allowed a credit against their income taxes in an amount equal to 50%, not to exceed $250, of the total amount paid by the taxpayer for local newspaper subscriptions or memberships for the personal use of the taxpayer and of the contributions made by the taxpayer to nonprofit local newspapers; and
A small business is allowed a credit against their income taxes, not to exceed $2,500, in an amount equal to the amount paid by the eligible small business for local newspaper advertising.

If the amount of the credit allowed exceeds the amount of income taxes otherwise due in the income tax year for which the credit is being claimed, the bill permits the amount of the credit not used in the income tax year to be carried forward as a credit against subsequent years’ income tax liability for a period not to exceed 10 years. Any amount of the credit that is not used after such period is not refunded to the taxpayer.

SECTION 1. Legislative declaration. (1) The general assembly hereby finds and declares that:

(a) Local news media is an important source of unbiased information for communities to learn about the actions of their state and local governments;

(b) In many communities, local news media is the only available source of reliable information, but local news media organizations are closing across the country;

(c) Local news media advertising reaches communities in a more meaningful way than other advertising options such as social media advertising, which often excludes groups due to their demographics, socioeconomic status, or personal choice;

(d) Multiple studies show that local news media is a trusted source of information, while large social media platforms are increasingly seen as spreading misinformation;

(e) State departments have a need to communicate directly with residents across the state, a need that advertising in local news media can Meet;

(f) Advertising in local news media provides revenue for local news media and so strengthens American democracy by supporting local news media, the public’s watchdog organizations; and

(g) Accordingly, purchasing advertising from local news media allows state departments to communicate with communities across the state and strengthens American democracy.

SECTION 2. In Colorado Revised Statutes, add article 1.3 to title
24 as follows:

ARTICLE 1.3
Local Newspaper Advertising
By State Departments
24-1.3-101. Local newspaper advertising by state departments
advertising spending requirement – waiver – reporting – definitions.

(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) “ADVERTISING” MEANS PROVIDING CONSIDERATION FOR THE PUBLICATION, DISSEMINATION, SOLICITATION, OR CIRCULATION OF VISUAL, ORAL, OR WRITTEN COMMUNICATION TO EITHER:

(I) DIRECTLY INDUCE ANY PERSON TO UTILIZE OR PARTICIPATE IN A SERVICE OFFERED BY A PRINCIPAL DEPARTMENT; OR

(II) MAKE ANY PERSON AWARE OF INFORMATION RELEVANT TO A PRINCIPAL DEPARTMENT.

(b) “LOCAL NEWSPAPER” MEANS A PRINT OR DIGITAL PUBLICATION THAT:

(I) PRIMARILY SERVES THE NEEDS OF THE STATE OF COLORADO OR A REGIONAL OR LOCAL COMMUNITY WITHIN COLORADO;

(II) PRIMARILY HAS CONTENT DERIVED FROM PRIMARY SOURCES RELATING TO NEWS AND CURRENT EVENTS; AND

(III) EMPLOYS AT LEAST ONE JOURNALIST WHO RESIDES IN COLORADO AND WHO REGULARLY GATHERS, COLLECTS, PHOTOGRAPHS, RECORDS, WRITES, OR REPORTS NEWS OR INFORMATION THAT CONCERNS LOCAL EVENTS OR OTHER MATTERS OF LOCAL PUBLIC INTEREST.

(2) BEGINNING JULY 1, 2023, A PRINCIPAL DEPARTMENT SHALL SPEND AT LEAST FIFTY PERCENT OF THE MONEY IT SPENDS ON ADVERTISING IN COLORADO IN A FISCAL YEAR ON ADVERTISING THROUGH LOCAL NEWSPAPERS. ADVERTISING PRIMARILY TARGETED AT OUT-OF-STATE RESIDENTS IS NOT SUBJECT TO THIS REQUIREMENT.

(3) EACH PRINCIPAL DEPARTMENT SHALL, AS PART OF ITS DEPARTMENTAL PRESENTATION TO ITS LEGISLATIVE OVERSIGHT COMMITTEE OF REFERENCE MADE PURSUANT TO SECTION 2-7-203 OF THE “STATE MEASUREMENT FOR ACCOUNTABLE, RESPONSIVE, AND TRANSPARENT (SMART) GOVERNMENT ACT”, INCLUDE A DESCRIPTION OF THE DEPARTMENT’S ADVERTISING SPENDING, IF ANY, AND WHAT PERCENTAGE OF THAT SPENDING WAS ALLOCATED TO ADVERTISING IN LOCAL NEWSPAPERS.

SECTION 3. In Colorado Revised Statutes, add 39-22-543 as Follows:

39-22-543. Tax credit for supporting local newspapers – legislative declaration – definitions – repeal. (1) IN ACCORDANCE WITH SECTION 39-21-304(1), WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(a) THE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDITS ALLOWED BY THIS SECTION ARE:

(I) TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS, SPECIFICALLY PURCHASING LOCAL NEWSPAPER SUBSCRIPTIONS OR MEMBERSHIPS, PURCHASING ADVERTISING IN LOCAL NEWSPAPERS, AND MAKING CONTRIBUTIONS TO NONPROFIT LOCAL NEWSPAPERS; AND

(II) TO PROVIDE TAX RELIEF TO TAXPAYERS WHO PURCHASE LOCAL NEWSPAPER SUBSCRIPTIONS OR MEMBERSHIPS, PURCHASE ADVERTISING IN LOCAL NEWSPAPERS, OR MAKE CONTRIBUTIONS TO NONPROFIT LOCAL NEWSPAPERS.

(b) THE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDITS ALLOWED BY THIS SECTION IS TO SUPPORT LOCAL NEWSPAPERS BY ENCOURAGING TAXPAYERS TO PURCHASE LOCAL NEWSPAPER SUBSCRIPTIONS OR MEMBERSHIPS, PURCHASE ADVERTISING IN LOCAL NEWSPAPERS, AND MAKE CONTRIBUTIONS TO NONPROFIT LOCAL NEWSPAPERS. IN ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE AUDITOR TO MEASURE THE EFFECTIVENESS OF THE CREDITS, THE DEPARTMENT OF REVENUE SHALL REQUIRE EACH TAXPAYER WHO CLAIMS THE CREDIT TO SUBMIT A CERTIFICATION FORM VERIFYING THAT THEY QUALIFY FOR THE CREDIT AND IDENTIFYING THE LOCAL NEWSPAPER THEY PURCHASED A SUBSCRIPTION OR MEMBERSHIP FROM, MADE A CONTRIBUTION TO, OR PURCHASED ADVERTISING FROM.

(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) “ADVERTISING” MEANS PROVIDING CONSIDERATION FOR THE PUBLICATION, DISSEMINATION, SOLICITATION, OR CIRCULATION OF VISUAL, ORAL, OR WRITTEN COMMUNICATION TO DIRECTLY INDUCE ANY PERSON TO PURCHASE A GOOD OR SERVICE.

(b) “ELIGIBLE SMALL BUSINESS” MEANS A BUSINESS WITH FEWER THAN FIFTY EMPLOYEES.

(I) PRIMARILY SERVES THE NEEDS OF THE STATE OF COLORADO OR A REGIONAL OR LOCAL COMMUNITY WITHIN COLORADO;

(II) PRIMARILY HAS CONTENT DERIVED FROM PRIMARY SOURCES RELATING TO NEWS AND CURRENT EVENTS; AND

(d) “NONPROFIT LOCAL NEWSPAPER” MEANS ANY LOCAL NEWSPAPER THAT IS EXEMPT FROM THE INCOME TAX IMPOSED UNDER THIS ARTICLE 22.

(3) FOR INCOME TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 2023, BUT BEFORE JANUARY 1, 2033:

(a) A TAXPAYER IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22 IN AN AMOUNT EQUAL TO FIFTY PERCENT, NOT TO EXCEED TWO HUNDRED FIFTY DOLLARS, OF THE TOTAL COMBINED AMOUNT:

(I) PAID BY THE TAXPAYER FOR LOCAL NEWSPAPER SUBSCRIPTIONS OR MEMBERSHIPS FOR THE PERSONAL USE OF THE TAXPAYER; AND

(II) OF THE CONTRIBUTIONS MADE BY THE TAXPAYER TO NONPROFIT LOCAL NEWSPAPERS.

(b) AN ELIGIBLE SMALL BUSINESS IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22 IN AN AMOUNT, NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS, EQUAL TO THE AMOUNT PAID BY THE ELIGIBLE SMALL BUSINESS TO LOCAL NEWSPAPERS FOR ADVERTISING IN COLORADO.

(4) TO QUALIFY FOR THE CREDIT PROVIDED BY THIS SECTION, A TAXPAYER SHALL SUBMIT A CERTIFICATION FORM, WHICH MAY BE PROVIDED BY EACH LOCAL NEWSPAPER THAT THE TAXPAYER PURCHASED A SUBSCRIPTION OR MEMBERSHIP FROM, MADE A CONTRIBUTION TO, OR PURCHASED ADVERTISING FROM, WITH THE TAXPAYER’S INCOME TAX RETURN FORM. A LOCAL NEWSPAPER THAT PROVIDES A CERTIFICATION FORM MUST CERTIFY THAT THE TAXPAYER HAS SATISFIED THE REQUIREMENTS FOR ALLOWANCE OF A TAX CREDIT AS SPECIFIED IN THIS SECTION AND IDENTIFY THE LOCAL NEWSPAPER THAT THE TAXPAYER PURCHASED A SUBSCRIPTION OR MEMBERSHIP FROM, MADE A CONTRIBUTION TO, OR PURCHASED ADVERTISING FROM.

(5) IF THE AMOUNT OF A CREDIT UNDER THIS SECTION EXCEEDS A TAXPAYER’S ACTUAL TAX LIABILITY FOR AN INCOME TAX YEAR, THE AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR MAY BE CARRIED FORWARD AS A CREDIT AGAINST SUBSEQUENT YEARS’ INCOME TAX LIABILITY FOR A PERIOD NOT TO EXCEED TEN YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST INCOME TAX YEARS POSSIBLE. ANY AMOUNT OF THE CREDIT THAT IS NOT USED AFTER SUCH PERIOD SHALL NOT BE REFUNDED TO THE TAXPAYER.

(6) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2042. SECTION 4. Act subject to petition – effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2022 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

Additional Resources:

Maryland

A BILL ENTITLED

AN ACT concerning

Income Tax – Local Advertisement Tax Credit

FOR the purpose of allowing certain small and medium–sized businesses to claim a credit against the State income tax for certain costs incurred during the taxable year for certain advertising activities, subject to certain limitations; and generally relating to an income tax credit for small and medium–sized businesses for advertising costs.

BY adding to

Article – Tax – General

Section 10–757

Annotated Code of Maryland

(2022 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,

That the Laws of Maryland read as follows:

Article – Tax – General

10–757.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED.

(2) (I) “NEWS MEDIA ENTITY” MEANS AN ENTITY ENGAGED PRIMARILY IN THE BUSINESS OF NEWSGATHERING, REPORTING, OR PUBLISHING ARTICLES OR COMMENTARY ABOUT NEWS, CURRENT EVENTS, CULTURE, OR OTHER MATTERS OF PUBLIC INTEREST.

(II) “NEWS MEDIA ENTITY” DOES NOT INCLUDE AN ENTITY

THAT IS PRIMARILY AN AGGREGATOR OR REPUBLISHER OF THIRD–PARTY CONTENT.

(3) “SMALL OR MEDIUM–SIZED BUSINESS” MEANS A BUSINESS WITH 2 FEWER THAN 50 EMPLOYEES.

(B) (1) SUBJECT TO THE LIMITATIONS OF THIS SECTION AND EXCEPT AS 4 PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION, FOR EACH TAXABLE YEAR, A SMALL OR MEDIUM–SIZED BUSINESS MAY CLAIM A CREDIT AGAINST THE STATE INCOME TAX FOR COSTS INCURRED DURING THE TAXABLE YEAR FOR ADVERTISING THROUGH A NEWS MEDIA ENTITY BASED WITHIN THE STATE, IN AN AMOUNT UP TO:

(I) $1,000 FOR THE FIRST TAXABLE YEAR THAT THE BUSINESS CLAIMS THE CREDIT; AND

(II) $500 FOR EACH SUBSEQUENT TAXABLE YEAR THAT THE BUSINESS CLAIMS THE CREDIT.

(2) A BUSINESS MAY NOT CLAIM A CREDIT UNDER THIS SECTION FOR MORE THAN 5 TAXABLE YEARS.

(C) (1) THE TOTAL AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR MAY NOT EXCEED THE STATE INCOME TAX FOR THAT TAXABLE YEAR.

(2) THE UNUSED AMOUNT OF THE CREDIT FOR ANY TAXABLE YEAR MAY NOT BE CARRIED OVER TO ANY OTHER TAXABLE YEAR.

(D) THE COMPTROLLER SHALL ADOPT REGULATIONS TO CARRY OUT THE PROVISIONS OF THIS SECTION.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022.

Additional Resource:

Maryland Retailers Association Testimony

Next: Our Process

Examples of Other Bills

Small Business Ad Kit: Other Bills

The Federal Language

The Community News & Small Business Support Act

The State Language

Wisconsin

Colorado

Maryland