Relative to supporting local journalism
If enacted, H2940 would amend Chapter 62 and Chapter 63 of the General Laws of Massachusetts, specifically allowing a credit against personal income taxes and corporate taxes for expenses related to local journalism. This legislation reflects an effort to counter the declining revenues faced by local newspapers due to digital competition and changing media consumption habits. By incentivizing readers and advertisers, the bill aims to stabilize local media landscapes and foster a greater appreciation for regional journalism.
House Bill 2940 aims to support local journalism in Massachusetts by providing tax credits for individuals and small businesses who subscribe to local newspapers and advertise within them. The bill introduces a Local Newspaper Subscription Credit, which allows taxpayers to claim a credit up to $250 for subscriptions, at an applicable percentage of 80% for the first year and 50% for subsequent years. This is intended to encourage residents to engage with local news outlets, which are seen as vital to community information and democracy.
Notably, there may be points of contention regarding the definition of 'local newspapers' and which entities qualify for the tax credits. The bill stipulates specific criteria for publications to be considered local, such as employing local journalists and primarily serving their communities. Critics may argue this definition could be too restrictive or may inadvertently favor larger newspapers over smaller, independent ones. Additionally, the fiscal impact on the state's budget due to the tax credits might also be a significant topic for debate among legislators.