Support the Local Journalism Sustainability Act

Bipartisan.

A strange word to say these days. Almost seems archaic — a product of a bygone era, like thou or perchance or knave or hornswoggle.

But, nay (there’s another one), bipartisanship is alive and ... we won’t say well exactly. She’s holding her own, though. Todd Young, the Hoosier State’s senior U.S. senator, has co-authored of a number of bipartisan bills during his time in Washington.

Another bipartisan effort has recently taken root in the halls of the House of Representatives. Co-sponsored by Rep. Ann Kirkpatrick (D-Arizona) and Rep. Dan Newhouse (R-Washington), the Local Jouralism Sustainability Act is aimed at keeping local newspapers viable in a climate that was volatile before COVID-19 came along and shook up lives and businesses across the nation and world.

This simple proposal could help newspapers like the Banner Graphic continue to serve the communities of West Central Indiana and other places around the country. Reps. Kirkpatrick and Newouse hope to do this through three different tax credits:

1. Credit for Local Newspaper Subscriptions. This five-year nonrefundable tax credit of up to $250 per year would help cover the costs of subscriptions to local newspapers, defined as print and online publications which primarily produce content related to news and current events and which have a majority of their readership within the publication’s state of operation or within 200 miles.

The credit would cover 80 percent of subscription costs in the first year and 50 percent of subscription costs in each of the subsequent four years. So if a reader spends $200 on subscriptions in a year, they would be eligible for a $160 credit in the first year and a $100 credit in each of the following four years.

2. Payroll Credit for Compensation of Journalists. This five-year refundable tax credit would provide local newspapers (utilizing the same definition as above) a credit to use for the compensation of journalists. The credit may be used on compensation up to $50,000 a year.

The credit would cover 50 percent of compensation, up to $50,000, in the first year and 30 percent of compensation, up to $50,000, in each of the subsequent four years.

A local newspaper may claim up to $25,000 per journalist in the first year and up to $15,000 per journalist in each of the following four years.

3. Credit for Advertising in Local Newspapers and Local Media. This five-year nonrefundable tax credit would provide businesses with less than 1,000 employees up to $5,000 in the first year and up to $2,500 in each of the subsequent four years to spend on advertising with local newspapers and local media.

The credit would cover 80 percent of advertising costs in the first year and 50 percent in each of the next four years. To receive the full $5,000 in the first year, a business would have to spend at least $6,250 on advertising in local newspapers and local media. To receive the full $2,500 in any of the next four years, a business would have to spend at least $5,000 on advertising in local newspapers and local media.

Newspapers and publishers are not looking for a handout. However, we want to be treated fairly and equally as other larger industries have been in our country.

Times are tough right now. We understand that our small business partners in the community are having to make tough choices regarding how they spend their funds in these trying times. We are not trying to get blood from a stone.

However, with swift action, Congress can help maintain this vital part of community life.

We ask that you, our readers, reach out to our representatives in Congress and ask that they, too, support the Local Journalism Sustainability Act.

Find contact links on their websites:

• Congressman Jim Baird: https://baird.house.gov/

• Senator Todd Young: https://www.young.senate.gov/

• Seantor Mike Braun: https://www.braun.senate.gov/

We thank you, our readers, for your continued support of the Banner Graphic.