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A02958 Summary:

BILL NOA02958C
 
SAME ASNo Same As
 
SPONSORWoerner
 
COSPNSRSayegh, Burdick, Levenberg, Cruz, Bores, Seawright, Fahy, Stirpe, Shimsky, McMahon, Reyes, Thiele, Sillitti, Septimo, Novakhov, Brabenec, Hawley, Maher, McDonough, Simon, Jones, Raga, Gunther, Epstein, Slater, Giglio JA, Byrnes, Angelino, Burgos, Kelles, Simone, Smith, Miller, Shrestha, Bichotte Hermelyn, McDonald, Buttenschon, Colton, Paulin, Gonzalez-Rojas, Lupardo, Weprin, Barrett, Jacobson, Curran, Conrad, Bendett, Gallagher, Simpson
 
MLTSPNSRSteck
 
Amd §§606 & 210-B, add §24-d, Tax L
 
Provides a payroll tax credit for compensation of journalists; provides for the repeal of such provisions upon the expiration thereof.
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A02958 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2958C
 
SPONSOR: Woerner
  TITLE OF BILL: An act to amend the tax law, in relation to providing a payroll tax credit for compensation of journalists; and to provide for the repeal of such provisions upon expiration thereof   PURPOSE OR GENERAL IDEA OF BILL: To enact the Local Journalism Sustainability Act, which will provide tax credits to consumers for subscriptions to local news outlets and to news organizations for the employment of local news journalists.   SUMMARY OF PROVISIONS: Section one provides the short title: the "Local Journalism Sustainabil- ity Act." Section two adds a new section 24-d to the tax law to establish a payroll credit for an eligible news journalist employer for each calen- dar quarter in an amount equal to fifty percent of wages paid by the employer to news journalists; limits the amount of wages to be taken into account for any one individual for any calendar quarter as no more than twelve thousand. five hundred dollars; limits the allowable credit to the first twenty calendar quarters beginning after the effective date; permits an employer to opt out of this section as prescribed by the commissioner; prohibits wages used to determine the credit under this section from also being applied to determine any other credit; defines "applicable percentage", "eligible news journalist employer", "qualifying broadcast station", "news journalist", "qualified services", "qualifying publication", "local community", and "disqualified organiza- tion"; and limits the maximum amount of tax credits allowed in any calendar year to one million dollars per eligible news journalist employer. Sections three, four, and five provide a business tax credit to eligible news journalist employers and qualifying broadcast stations in the amount computed as provided in section 24-d to the tax law. Section six provides the effective date, the bill's application to cred- its for tax years commencing on or after January 1, 2024, and the expi- ration and repeal date of January 1, 2029; and authorizes the commis- sioner, on or before the effective date, to add,, amend and/or repeal any rule or regulation necessary to implement the bill.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): Section two amends section 24-d of the tax law to conform the language with the refundable tax credit described under sections three and four of the bill.   JUSTIFICATION: Since 2004, more than 20% of American newspapers have shut down. In total they now employ half as -many journalists as they did 17 years ago. This decline is most stark when looking at New York's weekly news- papers, with 190 . of them closing shop in this time period. The journalism sector provides a vital public service, and it also provides many New Yorkers with jobs.. According to data from the Bureau of Labor Statistics, as of May 2020, 5,920 New Yorkers were employed as journalists, reporters and news analysts. That's more than any other state in America. This legislation is necessary to provide support for local news organ- izations that employ community-based journalists, and it will reward taxpayers who subscribe to local news .organizations. It will help New Yorkers stay informed and engaged with what's going on in their communi- ty.   PRIOR LEGISLATIVE HISTORY: A.8585 of 2021-2022 (Woerner): Died in Ways and Means S.7544 of 2021-2022 (Hoylman): Died in Budget and Revenue   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined   EFFECTIVE DATE: This act shall take effect immediately.
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A02958 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2958--C
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 1, 2023
                                       ___________
 
        Introduced by M. of A. WOERNER, SAYEGH, BURDICK, LEVENBERG, CRUZ, BORES,
          SEAWRIGHT,  FAHY,  STIRPE,  SHIMSKY, McMAHON, REYES, THIELE, SILLITTI,
          SEPTIMO, NOVAKHOV, BRABENEC, HAWLEY, MAHER, McDONOUGH,  SIMON,  JONES,
          RAGA,   GUNTHER,  EPSTEIN,  SLATER,  J. A. GIGLIO,  BYRNES,  ANGELINO,
          BURGOS, KELLES, SIMONE -- Multi-Sponsored by -- M. of A. STECK -- read
          once and referred to the Committee on  Ways  and  Means  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  -- again reported from said committee with amend-
          ments, ordered reprinted as amended and recommitted to said  committee
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee
 
        AN ACT to amend the tax law, in relation  to  providing  a  payroll  tax
          credit  for compensation of journalists; and to provide for the repeal
          of such 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.  This  act  shall  be known and may be cited as the "local
     2  journalism sustainability act".
     3    § 2. The tax law is amended by adding a new section 24-d  to  read  as
     4  follows:
     5    §  24-d. Payroll credit for compensation of journalists. (a) In gener-
     6  al.  An eligible news journalist employer which is subject to tax  under
     7  article  nine-A  or twenty-two of this chapter shall be allowed a credit
     8  against such tax, to be computed as provided in this section,  for  each
     9  calendar  quarter  an amount equal to the applicable percentage of wages
    10  paid by such employer to news journalists for such calendar quarter.
    11    (b) Limitations.  (1) The amount of wages paid  with  respect  to  any
    12  individual which may be taken into account under subdivision (a) of this
    13  section  during  any  calendar  quarter  by the eligible news journalist
    14  employer shall not exceed twelve thousand five hundred  dollars.  Credit
    15  is  allowed  for  individuals paid in excess of this amount but shall be
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02644-09-3

        A. 2958--C                          2
 
     1  limited to a portion of the  wages  paid  up  to  twelve  thousand  five
     2  hundred dollars per quarter.
     3    (2) The provisions of this section shall only apply to the first twen-
     4  ty calendar quarters beginning after the effective date of this section.
     5    (3)  This  section  shall  not apply with respect to any eligible news
     6  journalist employer for any calendar quarter if such employer elects (at
     7  such time and in such manner as the commissioner may prescribe)  not  to
     8  have this section apply.
     9    (4)  Any  wages  taken  into account in determining the credit allowed
    10  under this section shall not be  taken  into  account  for  purposes  of
    11  determining any other credit allowed under this chapter.
    12    (5)  The  credit allowable under this section shall be allowable for a
    13  period of five years from the effective date of this section. No  credit
    14  shall  be  allowed under this section for any amount paid or incurred by
    15  the taxpayer in a taxable year commencing after the close of  the  five-
    16  year  period.  No  credit  shall  be  allowed under this section for any
    17  portion of an amount paid or incurred by the taxpayer in a taxable  year
    18  for  any  wages  that  extend  beyond  the close of the five-year period
    19  beginning on the effective date of this section.
    20    (c) Definitions. As used in this section, the  following  terms  shall
    21  have the following meanings:
    22    (1) "Applicable percentage" means fifty percent.
    23    (2) (A) "Eligible news journalist employer" means, with respect to any
    24  calendar quarter, any employer which: (i) is a qualifying publication or
    25  a qualifying broadcast station; and (ii) employs news journalists.
    26    (B)  All  persons treated as a single employer under subsection (a) or
    27  (b) of section 52 of the Internal Revenue Code of  1986,  or  subsection
    28  (m) or (o) of section 414 of such Code, shall be treated as one employer
    29  for  purposes  of this paragraph; provided that each FCC licensed broad-
    30  cast station or qualifying publication which serves  a  separate  market
    31  shall  be  treated as a separate and single news journalist employer for
    32  the purposes of this tax credit.
    33    (3) (A) "Qualifying broadcast station"  means,  with  respect  to  any
    34  calendar quarter, any employer which:
    35    (i)  provides  local  community  news,  which  is broadcast during the
    36  calendar quarter and has been broadcast during each of the four calendar
    37  quarters preceding such calendar quarter;
    38    (ii) owns or operates a broadcast station, as defined by section three
    39  of the federal communications act of 1934;
    40    (iii) is not a disqualified organization;
    41    (iv) did not derive more than fifty percent of its gross receipts  for
    42  such calendar quarter from disqualified organizations; and
    43    (v)  discloses  its  ownership to the public at such times and in such
    44  manner as identified by the commissioner.
    45    (B) For purposes of this paragraph each FCC licensed broadcast station
    46  serving a separate market shall be treated as a separate and single news
    47  journalist employer.
    48    (4) "News journalist" means, with respect to any eligible  news  jour-
    49  nalist for any calendar quarter, any full time employee who (A) provides
    50  qualified services for an average of not less than thirty hours per week
    51  for  each  week  during  which such employee is employed by the eligible
    52  news journalist employer during the calendar quarter,  and  (B)  resides
    53  within  the  designated  broadcast  market  or  fifty miles of the local
    54  community with respect  to  the  qualifying  publication  or  qualifying
    55  broadcast  station  with  respect  to  which  the qualified services are
    56  provided.

        A. 2958--C                          3
 
     1    (5) "Qualified services" means services which  consist  of  gathering,
     2  preparing,  directing  the  recording of, producing, collecting,  photo-
     3  graphing,   recording,   writing,   editing,  reporting,  presenting  or
     4  publishing original news for dissemination to the local community.
     5    (6) "Qualifying publication" means, with respect to any calendar quar-
     6  ter, any print or digital publication:
     7    (A) which provides local community news, which is published during the
     8  calendar quarter and has been published during each of the four calendar
     9  quarters preceding such calendar quarter;
    10    (B) is not a disqualified organization;
    11    (C)  did  not derive more than fifty percent of its gross receipts for
    12  such calendar quarter from disqualified organizations;
    13    (D) which is covered by media liability insurance  for  such  calendar
    14  quarter; and
    15    (E) which publishes the owner's name pursuant to section three hundred
    16  thirty  of the general business law, provided that a digital publication
    17  shall publish the information required by such section on the website of
    18  such publication.
    19    (7) (A) "Local community" means, with respect to any qualifying publi-
    20  cation, a geographically contiguous area that does not exceed the bound-
    21  aries of:
    22    (i) the metropolitan or micropolitan statistical area, as  defined  by
    23  the  federal  Office  of  Management and Budget, in which the qualifying
    24  publication is primarily distributed;
    25    (ii) if such qualifying publication is not primarily distributed in  a
    26  metropolitan  or micropolitan statistical area, the county in which such
    27  qualifying publication is primarily distributed; or
    28    (iii) if such qualifying publication is not primarily distributed in a
    29  metropolitan or micropolitan statistical area or a county, the state.
    30    (B) A digital publication shall be considered to be primarily distrib-
    31  uted in the area where such publication  is  intended  to  be  primarily
    32  consumed.
    33    (8) "Disqualified organization" means:
    34    (A)  any  organization  described in section 501(c)(4) of the internal
    35  revenue code and exempt from tax under section 501(a) of such code;
    36    (B) any organization described in section 527 of the internal  revenue
    37  code; or
    38    (C)  any  organization  that is controlled, directly or indirectly, by
    39  one or more organizations described in subparagraph (A) or (B)  of  this
    40  paragraph.
    41    (d)  Maximum  amount  of  credits.  The  maximum amount of tax credits
    42  allowed under this section, subdivision sixty  of  section  two  hundred
    43  ten-B  and  subsection (w) of section six hundred six of this chapter in
    44  any calendar year shall be one million dollars per eligible  news  jour-
    45  nalist employer.
    46    (e)   Administration.   The   commissioner  shall  issue  such  forms,
    47  instructions, regulations, and guidance as are necessary:
    48    (1) to allow the advance payment of the credit under  subdivision  (a)
    49  of  this  section,  subject to the limitations provided in this section,
    50  based on such information as the commissioner shall require;
    51    (2) to provide for the reconciliation of such advance payment with the
    52  amount advanced at the time of filing the return of tax for the applica-
    53  ble calendar quarter or taxable year; and
    54    (3) with respect to the application of the  credit  under  subdivision
    55  (a)  of  this  section  to  third-party  payors  (including professional
    56  employer organizations, certified professional  employer  organizations,

        A. 2958--C                          4
 
     1  or  agents  under  section  3504  of the Internal Revenue Code of 1986),
     2  including  regulations  or  guidance  allowing  such  payors  to  submit
     3  documentation  necessary to substantiate the eligible employer status of
     4  employers that use such payors.
     5    (f)  Treatment  of  deposits. The commissioner shall waive any penalty
     6  under this chapter for any failure to make a deposit of  any  applicable
     7  employment  taxes  if  the commissioner determines that such failure was
     8  due to the reasonable anticipation of  the  credit  allowed  under  this
     9  section.
    10    (g)  Cross-references.  For  application of the credit provided for in
    11  this section, see the following provisions of this chapter:
    12    (1) article 9-A: section 210-B: subdivision 60.
    13    (2) article 22: section 606: subsections (i) and (w).
    14    § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
    15  sion 60 to read as follows:
    16    60.  Payroll  credit for compensation of journalists. (a) Allowance of
    17  credit. A taxpayer who is eligible pursuant to section twenty-four-d  of
    18  this  chapter  shall  be  allowed a credit to be computed as provided in
    19  such section against the tax imposed by this article.
    20    (b) Application of credit. The credit allowed under  this  subdivision
    21  for  any taxable year shall not reduce the tax due for such year to less
    22  than the amount prescribed  in  paragraph  (d)  of  subdivision  one  of
    23  section  two hundred ten of this article; provided, however, that if the
    24  amount of the credit allowable under this subdivision  for  any  taxable
    25  year  reduces  the  tax to such amount or if the taxpayer otherwise pays
    26  tax based on the fixed dollar minimum amount, the excess shall be treat-
    27  ed as an overpayment of tax to be credited  or  refunded  in  accordance
    28  with  the provisions of section one thousand eighty-six of this chapter;
    29  and provided, further, that the provisions of subsection (c) of  section
    30  one  thousand  eighty-eight of this chapter notwithstanding, no interest
    31  shall be paid thereon.
    32    § 4. Section 606 of the tax law is amended by adding a new  subsection
    33  (w) to read as follows:
    34    (w)  Payroll  credit for compensation of journalists. (1) Allowance of
    35  credit. A taxpayer who is eligible pursuant to section twenty-four-d  of
    36  this  chapter  shall  be  allowed a credit to be computed as provided in
    37  such section against the tax imposed by this article.
    38    (2) Application of credit. If the amount of the credit allowable under
    39  this subsection for any taxable year exceeds the taxpayer's tax for such
    40  year, the excess shall be treated as an overpayment of tax to be credit-
    41  ed or refunded as provided in section six  hundred  eighty-six  of  this
    42  article; provided, however, that no interest shall be paid thereon.
    43    §  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    44  of the tax law is amended by  adding  a  new  clause  (li)  to  read  as
    45  follows:
    46  (li) Payroll credit for              Amount of credit for the sum of
    47  compensation of journalists          payroll credit for compensation
    48  under subsection (w)                 of journalists under subdivision
    49                                       sixty of section
    50                                       two hundred ten-B
    51    §  6.  This  act  shall take effect immediately and shall apply to tax
    52  years commencing on and after January 1, 2024; provided that:
    53    (a) this act shall expire and be deemed repealed January 1, 2029; and
    54    (b) the expiration and repeal of this act shall not affect  the  proc-
    55  essing  or  allowance of any tax credit provided in this act for any tax
    56  year commencing prior to January 1, 2029.

        A. 2958--C                          5
 
     1    Effective immediately, the addition, amendment and/or  repeal  of  any
     2  rule  or  regulation necessary for the implementation of this act on its
     3  effective date are authorized to be made and completed on or before such
     4  date.
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