Bipartisan federal legislation would provide tax credits to ease the local news crisis

Bipartisan legislation has been introduced in Congress that would provide some government support for local news. The ubiquitous Steve Waldman, the co-founder of Report for America and the chair of the Rebuild Local News Coalition, writes that the bill “would provide more help for local news than any time in about a century, yet it’s done in a very First-Amendment-friendly way.”

Waldman has the details, so I’ll just hit the highlights:

  • It would provide a tax credit of up to $250 each year for subscriptions or donations to local news — a measure Waldman has been talking about for quite a while.
  • Payroll tax credits would be available to publishers for hiring or retaining journalists.
  • Small businesses would receive a tax credit for advertising in local news outlets.

The bill, known as the Local Journalism Sustainability Act, is co-sponsored by Reps. Dan Newhouse, R-Wash., and Ann Kirkpatrick, D-Ariz.

My reservation about this legislation is that would benefit chain-owned papers as much as it would independent papers and websites. I guess that’s OK, and it’s hard to imagine how to cut out the corporations while keeping benefits for independents. But I’m concerned that the legislation might freeze in place the advantage already held by corporate-owned legacy outlets without providing them much in the way of an incentive to improve their journalism.

On the other hand, I agree with Waldman that the legislation is ingenious in the way that it would provide government support for local news without making news organizations dependent on currying favor with the very people they’re covering. Another smart move: benefits would be limited to organizations with fewer than 750 employees, which would leave out the large national newspapers.

Overall, it’s a pretty interesting step that might help ease the local news crisis. I don’t see this as a comprehensive solution, but even a boost on the margins would help.

Local news as infrastructure

Report for America co-founder Steve Waldman is suggesting that a plan he’s been touting to help the beleaguered local news business be included in whatever infrastructure bill comes out of Congress.

Writing recently for Poynter Online, Waldman said that each American should be given a $250 tax credit either to buy a subscription to a local news source or to make a donation to a nonprofit news organization. He notes that Sen. Maria Cantwell, the chair of the Senate Commerce Committee, has come out in favor of $2.4 billion to bolster local news. Waldman writes:

Local news is, in fact, the civic infrastructure of democracy.

But let’s get less metaphorical. If the health of democracy wasn’t reason enough, there’s another, practical reason why help for local news should be part of the infrastructure bill. If the government is going to spend a trillion or so dollars on public works projects, we need local watchdog reporters to make sure the money is spent well.

Waldman has been promoting the $250 tax credit for some time, and he says it has some bipartisan support. But the idea of rolling it into the infrastructure bill seems worth exploring as a way of actually making it a reality.

Waldman discussed his Poynter piece with Brian Stelter last weekend on CNN’s “Reliable Sources.” He’s also involved in an organization called the Rebuild Local News Coalition, comprising more than 4,000 local newsrooms (up from about 3,000 at the time of the Poynter piece) and journalism advocacy organizations.