State Assembly and Senate versions of legislation that would provide a state tax break for businesses that advertise in local news media has been introduced by Sen. Monica R. Martinez, who represents the 4th Senate District on Long Island, and Assemblymember Jen Lunsford, who represents Assembly District 135 in upstate New York. Their LOCAL Act bills were sent to committee.
The bills call for setting up a pool of $10 million in tax credits that can be drawn upon by businesses that advertise in local news media, including newspapers, websites and broadcasting outlets. The legislation is supported the Empire State Local News Coalition.
The tax credits would be primarily aimed at minority-, woman- and veteran-owned businesses, or any local business with 10 or fewer employees that buys local advertising. A business would be eligible to receive a refundable tax credit of 80% of its first $5,000 of local advertising for a maximum credit of $4,000 per year.
“Small businesses are centers of our communities, built upon relationships with neighbors,” Martinez said. “The LOCAL Act will strengthen those ties by making it easier to connect to local customers through the trusted media deeply rooted in the places they serve. This legislation fosters a cycle of growth, allowing small businesses to expand their reach while investing in the media outlets that keep New Yorkers informed and engaged.”
Lunsford said that the legislation is about more than just advertising and is “about investing in the economic health of our local community and investing in the kind of local journalism that we need now more than ever. By providing small businesses with the tools to connect with their neighbors and supporting the local journalism that keeps us informed, this legislation strengthens the foundation of our local economies. It’s a smart, innovative solution that ensures businesses and residents can thrive together across New York state.”
Ben Dixon, executive director of the St. Lawrence County Chamber of Commerce said, “Effective marketing to target audiences would become financially feasible to our businesses, ultimately enhancing their profitability and their ability to reinvest in our communities. It would also uplift our local newspapers, radio and digital platforms, which are essential to the fabric of our community, keeping our citizens informed and engaged. This legislation is therefore a common-sense approach to keeping dollars circulating within the St. Lawrence County community and we urge its passage.”
Among the organizations providing early support for the legislation are the Long Island Association, the Long Island African American Chamber of Commerce, Upstate United and the National Federation of Independent Business.
