Bill Text: NY A08258 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes tax credits for local newspaper subscriptions, newspaper payrolls, and local media advertising.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2022-06-01 - held for consideration in ways and means [A08258 Detail]
Download: New_York-2021-A08258-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8258 2021-2022 Regular Sessions IN ASSEMBLY August 25, 2021 ___________ Introduced by M. of A. McDONOUGH -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing tax credits for local newspaper subscriptions, newspaper payrolls, and local media advertising; and providing for the repeal of certain provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (nnn) to read as follows: 3 (nnn) Local newspaper subscription tax credit. (1) Allowance of cred- 4 it. A taxpayer with a subscription to a local newspaper during the taxa- 5 ble year shall be allowed a credit against the tax imposed by this arti- 6 cle in an amount not to exceed two hundred fifty dollars. 7 (2) Definitions. (A) For the purposes of this subsection, "local news- 8 paper" shall mean any print or digital publication if: (i) the primary 9 content of such publication is original content derived from primary 10 sources and relating to news and current events; 11 (ii) at least fifty-one percent of the readers of such publication, 12 including both print and digital versions, reside in: 13 a. a single county within this state, or 14 b. a single area with a two hundred mile radius; 15 (iii) at least fifty percent of such publication's content is original 16 and is created or produced by persons receiving compensation for their 17 services from such publication; 18 (iv) the publication employs at least one local news journalist who 19 resides in such county or single area; and 20 (v) the publication employs not greater than two hundred employees. 21 The requirements of clauses (i) through (v) of this subparagraph shall 22 not be treated as met unless such requirements are met at all times EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11843-02-1A. 8258 2 1 during the period beginning on the date which is two years before the 2 effective date of this subsection. 3 (B) In the case of any print or digital publication which is published 4 by any tax exempt organization, such publication shall be treated as a 5 local newspaper only if: 6 (i) the publication of print and digital publications is the primary 7 activity of such organization, and 8 (ii) any person making a charitable contribution to such organization 9 may elect to treat such contribution as an amount paid or incurred for a 10 subscription to which this subsection applies in lieu of treating such 11 contribution as a charitable contribution. 12 § 2. Section 606 of the tax law is amended by adding a new subsection 13 (ooo) to read as follows: 14 (ooo) Newspaper payroll tax credit. (1) General. A taxpayer shall be 15 allowed a credit against the tax imposed by this article for each quar- 16 ter during the taxable year in an amount equal to the applicable 17 percentage of the qualified journalism compensation paid to each indi- 18 vidual for such quarter. 19 (2) Amount of credit. (A) The amount of qualified journalism compen- 20 sation paid with respect to any individual which may be taken into 21 account under paragraph one of this subsection during any quarter during 22 the taxable year by the eligible newspaper employer shall not exceed 23 twelve thousand five hundred dollars. 24 (B) The credit allowed by paragraph one of this subsection with 25 respect to any quarter during the taxable year shall not exceed the 26 applicable employment taxes on the wages paid with respect to the 27 employment of all the employees of the eligible newspaper employer for 28 such quarter. 29 (C) If the amount of the credit allowed under this subsection for any 30 taxable year shall exceed the taxpayer's tax for such year, the excess 31 shall be treated as an overpayment of tax to be credited or refunded in 32 accordance with the provisions of section six hundred eighty-six of this 33 article, provided, however, that no interest shall be paid thereon. 34 (3) Definitions. For purposes of this subsection, the following terms 35 shall have the following meanings: 36 (A) "Applicable percentage" shall mean: 37 (i) for taxable years beginning in two thousand twenty-two, each of 38 the first four quarters during the taxable year to which this subsection 39 applies, fifty percent; and 40 (ii) for taxable years beginning after two thousand twenty-two, each 41 quarter during the taxable year thereafter, thirty percent. 42 (B) "Eligible newspaper employer" shall mean, with respect to any 43 quarter during the taxable year, any employer if: (i) substantially all 44 of the gross receipts of such employer for such quarter are derived from 45 the trade or business of printing or publishing print or digital publi- 46 cations the primary content of which is original content derived from 47 primary sources and relating to news and current events; 48 (ii) at least fifty-one percent of the readers of which reside in: 49 a. a single county within this state; or 50 b. a single area with a two hundred mile radius; 51 (iii) at least fifty percent of such publication's content is original 52 and is created or produced by persons receiving compensation for their 53 services from such publication; 54 (iv) the publication employs at least one local news journalist who 55 resides in such county or single area; and 56 (v) the publication employs not greater than two hundred employees.A. 8258 3 1 The requirements of clauses (i) through (v) of this subparagraph shall 2 not be treated as met unless such requirements are met at all times 3 during the period beginning on the date which is two years before the 4 effective date of this subsection. 5 (C) "Qualified journalism compensation" shall mean: 6 (i) wages paid by an eligible newspaper employer to an employee for 7 service as a journalist; and 8 (ii) in the case of remuneration paid to an individual who is not an 9 employee of the employer, such remuneration as would be described in 10 subparagraph (A) of this paragraph if such individual were such an 11 employee. 12 (D) "Journalist" shall mean any individual who regularly gathers, 13 prepares, collects, photographs, records, writes, edits, reports, or 14 publishes news or information that concerns local, national, or interna- 15 tional events or other matters of public interest for dissemination to 16 the public. 17 § 3. Section 606 of the tax law is amended by adding a new subsection 18 (ppp) to read as follows: 19 (ppp) Local media advertising tax credit. (1) General. A taxpayer 20 determined to be an eligible small business shall be allowed a credit 21 against the tax imposed by this article for any taxable year in an 22 amount equal to the applicable percentage of the qualified local media 23 advertising expenses paid or incurred by such taxpayer during such taxa- 24 ble year. 25 (2) Amount of credit. The credit allowed under paragraph one of this 26 subsection to any taxpayer for any taxable year shall not exceed: 27 (A) for taxable years beginning in two thousand twenty-two, five thou- 28 sand dollars, and 29 (B) for taxable years beginning after two thousand twenty-two, two 30 thousand five hundred dollars. 31 (3) Definitions. For the purposes of this subsection, the following 32 terms shall have the following meanings: 33 (A) "Applicable percentage" shall mean: 34 (i) for taxable years beginning in two thousand twenty-two, eighty 35 percent, and 36 (ii) for taxable years beginning after two thousand twenty-two, fifty 37 percent. 38 (B) "Eligible small business" shall mean any person for any taxable 39 year if the average number of full-time employees employed by such 40 person during such taxable year was less than one thousand employees. 41 (C) "Qualified local media advertising expenses" shall mean amounts 42 paid or incurred in the ordinary course of a trade or business for 43 advertising in a local newspaper as defined in subparagraph (A) of para- 44 graph two of subsection (nnn) of this section or a broadcast of a local 45 radio or television station. 46 (D) "Local radio or television station" shall mean any broadcast radio 47 or television station licensed by the federal communications commission 48 to serve a local community. 49 (4) Denial of double benefit. No deduction shall be allowed for any 50 qualified local media advertising expenses otherwise allowable as a 51 deduction for the taxable year which is equal to the amount of the cred- 52 it determined for such taxable year under paragraph one of this 53 subsection. 54 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 55 of the tax law is amended by adding a new clause (xlvi) to read as 56 follows:A. 8258 4 1 (xlvi) Local newspaper subscription Amount of credit 2 tax credit under subsection (nnn) under subdivision 3 fifty-eight of 4 section two 5 hundred ten-B 6 § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 7 of the tax law is amended by adding a new clause (xlix) to read as 8 follows: 9 (xlix) Newspaper payroll Amount of credit 10 tax credit under subsection (ooo) under subdivision 11 fifty-nine of 12 section two 13 hundred ten-B 14 § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 15 of the tax law is amended by adding a new clause (l) to read as follows: 16 (l) Local media advertising Amount of credit 17 tax credit under subsection (ppp) under subdivision 18 sixty of section 19 two hundred ten-B 20 § 7. Section 210-B of the tax law is amended by adding a new subdivi- 21 sion 58 to read as follows: 22 58. Local newspaper subscription tax credit. (a) Allowance of credit. 23 A taxpayer with a subscription to a local newspaper during the taxable 24 year shall be allowed a credit against the tax imposed by this article 25 in an amount not to exceed two hundred fifty dollars. 26 (b) Definitions. (1) For the purposes of this subdivision, "local 27 newspaper" shall mean any print or digital publication if: (i) if the 28 primary content of such publication is original content derived from 29 primary sources and relating to news and current events; 30 (ii) at least fifty-one percent of the readers of such publication, 31 including both print and digital versions, reside in: 32 (A) a single county within this state, or 33 (B) a single area with a two hundred mile radius; 34 (iii) at least fifty percent of such publication's content is original 35 and is created or produced by persons receiving compensation for their 36 services from such publication; 37 (iv) the publication employs at least one local news journalist who 38 resides in such county or single area; and 39 (v) the publication employs not greater than two hundred employees. 40 The requirements of clauses (i) through (v) of this subparagraph shall 41 not be treated as met unless such requirements are met at all times 42 during the period beginning on the date which is two years before the 43 effective date of this subdivision. 44 (2) In the case of any print or digital publication which is published 45 by any tax exempt organization, such publication shall be treated as a 46 local newspaper only if: 47 (i) the publication of print and digital publications is the primary 48 activity of such organization, and 49 (ii) any person making a charitable contribution to such organization 50 may elect to treat such contribution as an amount paid or incurred for a 51 subscription to which this subdivision applies in lieu of treating such 52 contribution as a charitable contribution. 53 § 8. Section 210-B of the tax law is amended by adding a new subdivi- 54 sion 59 to read as follows: 55 59. Newspaper payroll tax credit. (a) General. A taxpayer shall be 56 allowed a credit against the tax imposed by this article for each quar-A. 8258 5 1 ter during the taxable year in an amount equal to the applicable 2 percentage of the qualified journalism compensation paid to each indi- 3 vidual for such quarter. 4 (b) Amount of credit. (1) The amount of qualified journalism compen- 5 sation paid with respect to any individual which may be taken into 6 account under paragraph (a) of this subdivision during any quarter 7 during the taxable year by the eligible newspaper employer shall not 8 exceed twelve thousand five hundred dollars. 9 (2) The credit allowed by paragraph (a) of this subdivision with 10 respect to any quarter during the taxable year shall not exceed the 11 applicable employment taxes on the wages paid with respect to the 12 employment of all the employees of the eligible newspaper employer for 13 such quarter. 14 (3) If the amount of the credit allowed under this subdivision for any 15 taxable year shall exceed the taxpayer's tax for such year, the excess 16 shall be treated as an overpayment of tax to be credited or refunded in 17 accordance with the provisions of section six hundred eighty-six of this 18 chapter, provided, however, that no interest shall be paid thereon. 19 (c) Definitions. For purposes of this subdivision, the following terms 20 shall have the following meanings: 21 (1) "Applicable percentage" shall mean: 22 (i) for taxable years beginning in two thousand twenty-two, each of 23 the first four quarters during the taxable year to which this subdivi- 24 sion applies, fifty percent; and 25 (ii) for taxable years beginning after two thousand twenty-two, each 26 quarter during the taxable year thereafter, thirty percent. 27 (2) "Eligible newspaper employer" shall mean, with respect to any 28 quarter during the taxable year, any employer if: (i) substantially all 29 of the gross receipts of such employer for such quarter are derived from 30 the trade or business of printing or publishing print or digital publi- 31 cations the primary content of which is original content derived from 32 primary sources and relating to news and current events; 33 (ii) at least fifty-one percent of the readers of which reside in: 34 (A) a single county within this state; or 35 (B) a single area with a two hundred mile radius; 36 (iii) at least fifty percent of such publication's content is original 37 and is created or produced by persons receiving compensation for their 38 services from such publication; 39 (iv) the publication employs at least one local news journalist who 40 resides in such county or single area; and 41 (v) the publication employs not greater than two hundred employees. 42 The requirements of clauses (i) through (v) of this subparagraph shall 43 not be treated as met unless such requirements are met at all times 44 during the period beginning on the date which is two years before the 45 effective date of this subdivision. 46 (3) "Qualified journalism compensation" shall mean: 47 (i) wages paid by an eligible newspaper employer to an employee for 48 service as a journalist; and 49 (ii) in the case of remuneration paid to an individual who is not an 50 employee of the employer, such remuneration as would be described in 51 subparagraph one of this paragraph if such individual were such an 52 employee. 53 (4) "Journalist" shall mean any individual who regularly gathers, 54 prepares, collects, photographs, records, writes, edits, reports, or 55 publishes news or information that concerns local, national, or interna-A. 8258 6 1 tional events or other matters of public interest for dissemination to 2 the public. 3 § 9. Section 210-B of the tax law is amended by adding a new subdivi- 4 sion 60 to read as follows: 5 60. Local media advertising tax credit. (a) General. A taxpayer deter- 6 mined to be an eligible small business shall be allowed a credit against 7 the tax imposed by this article for any taxable year in an amount equal 8 to the applicable percentage of the qualified local media advertising 9 expenses paid or incurred by such taxpayer during such taxable year. 10 (b) Amount of credit. The credit allowed under paragraph (a) of this 11 subdivision to any taxpayer for any taxable year shall not exceed: 12 (1) for taxable years beginning in two thousand twenty-two, five thou- 13 sand dollars, and 14 (2) for taxable years beginning after two thousand twenty-two, two 15 thousand five hundred dollars. 16 (c) Definitions. For the purposes of this subdivision, the following 17 terms shall have the following meanings: 18 (1) "Applicable percentage" shall mean: 19 (i) for taxable years beginning in two thousand twenty-two, eighty 20 percent, and 21 (ii) for taxable years beginning after two thousand twenty-two, fifty 22 percent. 23 (2) "Eligible small business" shall mean any person for any taxable 24 year if the average number of full-time employees employed by such 25 person during such taxable year was less than one thousand employees. 26 (3) "Qualified local media advertising expenses" shall mean amounts 27 paid or incurred in the ordinary course of a trade or business for 28 advertising in a local newspaper as defined in subparagraph one of para- 29 graph (b) of subdivision fifty-eight of this section or a broadcast of a 30 local radio or television station. 31 (4) "Local radio or television station" shall mean any broadcast radio 32 or television station licensed by the federal communications commission 33 to serve a local community. 34 (d) Denial of double benefit. No deduction shall be allowed for any 35 qualified local media advertising expenses otherwise allowable as a 36 deduction for the taxable year which is equal to the amount of the cred- 37 it determined for such taxable year under paragraph (a) of this subdivi- 38 sion. 39 § 10. This act shall take effect immediately and shall apply to taxa- 40 ble years commencing on and after January 1, 2022; provided, however, 41 that the provisions of sections one, three, four, six, seven and nine of 42 this act shall expire on December 31, 2027, when upon such date the 43 provisions of such sections shall be deemed repealed.
