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.
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 forAmount of credit for the sum of
47 compensation of journalistspayroll 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.
