1.1 A bill for an act
1.2 relating to taxation; individual income; corporate franchise; allowing a credit for
1.3 local advertising expenses; amending Minnesota Statutes 2024, sections 290.0131,
1.4 by adding a subdivision; 290.0133, by adding a subdivision; proposing coding for
1.5 new law in Minnesota Statutes, chapter 290.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2024, section 290.0131, is amended by adding a subdivision
1.8to read:
1.9 Subd. 21.Advertising expenses.The amount of qualifying local media advertising
1.10expenses used to claim the credit under section 290.0696 is an addition.
1.11 EFFECTIVE DATE.This section is effective for taxable years beginning after December
1.1231, 2024.
1.13 Sec. 2. Minnesota Statutes 2024, section 290.0133, is amended by adding a subdivision
1.14to read:
1.15 Subd. 16.Advertising expenses.The amount of qualifying local media advertising
1.16expenses used to claim the credit under section 290.0696 is an addition.
1.17 EFFECTIVE DATE.This section is effective for taxable years beginning after December
1.1831, 2024.
1.19 Sec. 3. [290.0696] CREDIT FOR ADVERTISING IN LOCAL MEDIA.
1.20 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
1.21the meanings given.
1Sec. 3.
REVISOR EAP/VJ 25-0427103/03/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2221
NINETY-FOURTH SESSION
Authored by Joy03/12/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1 (b) "Applicable percentage" means 80 percent for a taxable year described in subdivision
2.22, paragraph (b), and 50 percent for a taxable year described in subdivision 2, paragraph
2.3(c).
2.4 (c) "Qualified publisher" means a publisher that:
2.5 (1) is not an organization described in paragraph (4), (5), or (6) of section 501(c) of the
2.6Internal Revenue Code;
2.7 (2) is not a political organization, as defined in section 527(e) of the Internal Revenue
2.8Code;
2.9 (3) is not any organization controlled by one or more organizations described in clause
2.10(1) or (2);
2.11 (4) is not any organization that received more than $100,000 in the aggregate from
2.12organizations described in clauses (1) to (3) in a taxable year; or
2.13 (5) does not meet the requirements under clauses (1) to (4) for any period beginning one
2.14year before the date of enactment of this section and the date on which a qualifying local
2.15media advertising expense is paid or incurred.
2.16 (d) "Local news journalist" means any individual who regularly gathers, prepares,
2.17produces, collects, edits, photographs, records, directs the recording of, writes, presents, or
2.18reports news or information that concerns local events or other matter of local public interest.
2.19 (e) "Local newspaper" means any print or digital publication if:
2.20 (1) the primary content of the publication is original content derived from primary sources
2.21and relating to news and current events in Minnesota;
2.22 (2) the publication primarily serves the needs of a regional or local community in this
2.23state;
2.24 (3) the publisher of the publication:
2.25 (i) employs at least one full-time local news journalist who resides in the regional or
2.26local community;
2.27 (ii) employs not more than 750 employees, of which greater than half are employed in
2.28Minnesota; and
2.29 (iii) is a qualified publisher.
2.30 (f) "Qualifying local media advertising expenses" means any trade or business expense
2.31deductible under section 162 of the Internal Revenue Code for:
2Sec. 3.
REVISOR EAP/VJ 25-0427103/03/25 3.1 (1) advertising in a local newspaper; or
3.2 (2) advertising on any broadcast radio or television station licensed by the Federal
3.3Communications Commission to serve a local community.
3.4For purposes of this paragraph, "advertising" includes sponsorships.
3.5 (g) "Qualifying taxpayer" means a taxpayer employing an average of less than 50 full-time
3.6employees a taxable year, as determined under section 4980H(c)(2) of the Internal Revenue
3.7Code.
3.8 Subd. 2.Credit allowed.(a) A qualifying taxpayer is allowed a credit against the tax
3.9due under this chapter equal to the applicable percentage of the qualifying local media
3.10advertising expenses paid by the qualifying taxpayer in a taxable year.
3.11 (b) For taxable years beginning after December 31, 2024, and before January 1, 2026,
3.12the amount of the credit allowed under paragraph (a) must not exceed $5,000.
3.13 (c) For taxable years beginning after December 31, 2025, the amount of the credit allowed
3.14under paragraph (a) must not exceed $2,500.
3.15 Subd. 3.Limitation; carryover.The credit must not exceed the liability for tax under
3.16this chapter. If the amount of the credit allowed exceeds the liability for tax of the taxpayer,
3.17the excess is a local advertising credit carryover to each of the five succeeding taxable years.
3.18The entire amount of the excess unused credit for the taxable year must be carried first to
3.19the earliest of the taxable years to which the credit may be carried and then to each successive
3.20year to which the credit may be carried. The amount of the unused credit that may be added
3.21under this clause must not exceed the taxpayer's liability for tax under this chapter less the
3.22local advertising credit for the taxable year.
3.23 Subd. 4.Partnerships; multiple owners.Credits granted to a partnership, a limited
3.24liability company taxed as a partnership, or an S corporation are passed through to the
3.25partners, members, or shareholders, respectively, pro rata to each partner, member, or
3.26shareholder based on their share of the entity's assets or as specially allocated in their
3.27organizational documents or any other executed agreement, as of the last day of the taxable
3.28year.
3.29 Subd. 5.Expiration.The credit under this subdivision expires January 1, 2029, for
3.30taxable years beginning after December 31, 2028.
3.31 EFFECTIVE DATE.This section is effective for taxable years beginning after December
3.3231, 2024.
3Sec. 3.
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