New York has taken a pioneering step to bolster local media by introducing a payroll tax credit to encourage hiring journalists, marking a landmark move as part of the state’s latest budget due for finalization this Saturday.
This initiative, known as the Local Journalism Sustainability Act, allocates $30 million annually and is the first of its kind in the United States to support local news organizations specifically.
The tax credit will allow eligible media outlets to claim a 50% refundable credit on the first $50,000 of a journalist’s salary, with a maximum benefit of $300,000 per company.
This financial boost is primarily targeted at independently owned publications and aims to address the severe decline many of these outlets have experienced in circulation and staffing levels.
To qualify, outlets must show a decrease in circulation or in the number of full-time employees by at least 20% over the past five years.
Mona Davids, Founder and Publisher of LittleAfrica News, stated, “This is great news for publishers. This tax credit will help us hire more reporters and increase our coverage of local news relevant to our communities.”
Democrat State Senator Brad Hoylman-Sigal, a key advocate of the bill, said local media news is essential for democracy.
Hoylman-Sigal stated, “The decline of local news across the country has led to the loss of one-third of newspapers and two-thirds of its journalists since 2005, leaving more than 200 counties as ‘news deserts’ without access to local news. In response, I’m elated that passed our first-in-the-nation Newspaper and Broadcast Media Jobs Program tax incentive in this year’s state budget.”
He added, “This new initiative will help strengthen local news coverage by creating a $30 million tax credit to hire and retain journalists for qualifying, independently owned print media or broadcasting entities, particularly those that have experienced workforce or circulation decline in the last five years.”
The senator concluded, “With this new tax credit, we’ll help ensure that New Yorkers are better informed and that democracy doesn’t die in darkness. I’m extremely grateful to Senate Majority Leader Stewart-Cousins (herself a former local journalist), Governor Hochul, and Assembly Member Carrie Woerner for their support of this landmark legislation.”
Assemblywoman Carrier Woerner also praised the initiative, saying, “Local newspapers are disappearing, subsumed into national companies and relying on national content providers to fill their pages.”
Woerner continued, “On-the-ground trained journalists play a crucial role in keeping people informed about what is happening in their county, city, town, village or neighborhood. I am pleased that this year’s budget includes a new tax credit which supports these news companies to maintain and grow their newsroom staffs with local reporters.”
This initiative comes as New York annually invests over $8 billion in tax incentives and grants aimed at attracting and retaining businesses within the high-tax state. The introduction of this tax break has been a long-sought goal for supporters who believe extending such benefits to the newspaper and local TV industry is crucial.
Zawadi Morris, Owner of BK Reader, noted, “This is great news for news publishers in New York, as so many independent news publishers struggle to meet their bottom line year over year.”
She added, “I remember signing onto this initiative in 2022, and didn’t have a lot of confidence it would happen. But it’s amazing that New York has taken the lead and showing a real commitment to news sustainability. This is a big step in the right direction.”
The funds are designated to be distributed among small companies with no more than 100 employees and larger entities.
This year, local, independently owned news outlets established the Empire State Local News Coalition, along with support from prominent unions, which has been instrumental in gaining traction for this legislative measure amidst the widespread closure of newspapers across the country over the last decade.
