| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 1753 |
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| 5 | 5 | | To provide tax incentives that support local media. |
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| 6 | 6 | | IN THE HOUSE OF REPRESENTATIVES |
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| 7 | 7 | | FEBRUARY27, 2025 |
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| 8 | 8 | | Ms. T |
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| 9 | 9 | | ENNEY(for herself and Ms. DELBENE) introduced the following bill; |
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| 10 | 10 | | which was referred to the Committee on Ways and Means |
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| 11 | 11 | | A BILL |
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| 12 | 12 | | To provide tax incentives that support local media. |
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| 13 | 13 | | Be it enacted by the Senate and House of Representa-1 |
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| 14 | 14 | | tives of the United States of America in Congress assembled, 2 |
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| 15 | 15 | | SECTION 1. SHORT TITLE. 3 |
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| 16 | 16 | | This Act may be cited as the ‘‘Community News and 4 |
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| 17 | 17 | | Small Business Support Act’’. 5 |
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| 18 | 18 | | SEC. 2. CREDIT FOR ADVERTISING IN LOCAL MEDIA. 6 |
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| 19 | 19 | | (a) I |
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| 20 | 20 | | NGENERAL.—Subpart D of part IV of sub-7 |
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| 21 | 21 | | chapter A of chapter 1 of the Internal Revenue Code of 8 |
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| 22 | 22 | | 1986 is amended by adding at the end the following new 9 |
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| 23 | 23 | | section: 10 |
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| 25 | 25 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 26 | 26 | | •HR 1753 IH |
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| 27 | 27 | | ‘‘SEC. 45BB. ADVERTISING IN LOCAL MEDIA. 1 |
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| 28 | 28 | | ‘‘(a) I |
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| 29 | 29 | | NGENERAL.—For purposes of section 38, in 2 |
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| 30 | 30 | | the case of any eligible small business, the local media ad-3 |
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| 31 | 31 | | vertising credit determined under this section for any tax-4 |
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| 32 | 32 | | able year is an amount equal to the applicable percentage 5 |
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| 33 | 33 | | of the qualified local media advertising expenses paid or 6 |
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| 34 | 34 | | incurred by the taxpayer during such taxable year. 7 |
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| 35 | 35 | | ‘‘(b) L |
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| 36 | 36 | | IMITATION.—The credit allowed under sub-8 |
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| 37 | 37 | | section (a) to any taxpayer for any taxable year shall not 9 |
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| 38 | 38 | | exceed— 10 |
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| 39 | 39 | | ‘‘(1) in the case of the first taxable year to 11 |
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| 40 | 40 | | which this section applies, $5,000, and 12 |
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| 41 | 41 | | ‘‘(2) in the case of any subsequent taxable year, 13 |
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| 42 | 42 | | $2,500. 14 |
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| 43 | 43 | | ‘‘(c) A |
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| 44 | 44 | | PPLICABLEPERCENTAGE.—For purposes of 15 |
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| 45 | 45 | | this section, the term ‘applicable percentage’ means— 16 |
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| 46 | 46 | | ‘‘(1) in the case of the first taxable year to 17 |
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| 47 | 47 | | which this section applies, 80 percent, and 18 |
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| 48 | 48 | | ‘‘(2) in the case of any subsequent taxable year, 19 |
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| 49 | 49 | | 50 percent. 20 |
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| 50 | 50 | | ‘‘(d) E |
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| 51 | 51 | | LIGIBLESMALLBUSINESS.—For purposes of 21 |
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| 52 | 52 | | this section, the term ‘eligible small business’ means any 22 |
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| 53 | 53 | | person for any taxable year if the average number of full- 23 |
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| 54 | 54 | | time employees (as determined for purposes of deter-24 |
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| 55 | 55 | | mining whether an employer is an applicable large em-25 |
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| 56 | 56 | | ployer for purposes of section 4980H(c)(2) of the Internal 26 |
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| 58 | 58 | | ssavage on LAPJG3WLY3PROD with BILLS 3 |
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| 59 | 59 | | •HR 1753 IH |
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| 60 | 60 | | Revenue Code of 1986) employed by such person during 1 |
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| 61 | 61 | | such taxable year was less than 50. 2 |
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| 62 | 62 | | ‘‘(e) Q |
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| 63 | 63 | | UALIFIEDLOCALMEDIAADVERTISINGEX-3 |
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| 64 | 64 | | PENSES.—For purposes of this section, the term ‘qualified 4 |
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| 65 | 65 | | local media advertising expenses’ means amounts paid or 5 |
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| 66 | 66 | | incurred in the ordinary course of a trade or business 6 |
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| 67 | 67 | | for— 7 |
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| 68 | 68 | | ‘‘(1) advertising in a local newspaper, or 8 |
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| 69 | 69 | | ‘‘(2) advertising on any broadcast radio or tele-9 |
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| 70 | 70 | | vision station licensed by the Federal Communica-10 |
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| 71 | 71 | | tions Commission to serve a local community. 11 |
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| 72 | 72 | | For purposes of this subsection, the term ‘advertising’ in-12 |
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| 73 | 73 | | cludes sponsorships. 13 |
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| 74 | 74 | | ‘‘(f) L |
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| 75 | 75 | | OCALNEWSPAPER.—For purposes of this sec-14 |
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| 76 | 76 | | tion— 15 |
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| 77 | 77 | | ‘‘(1) I |
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| 78 | 78 | | N GENERAL.—The term ‘local newspaper’ 16 |
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| 79 | 79 | | means any print or digital publication if— 17 |
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| 80 | 80 | | ‘‘(A) the primary content of such publica-18 |
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| 81 | 81 | | tion is original content derived from primary 19 |
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| 82 | 82 | | sources and relating to news and current 20 |
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| 83 | 83 | | events, 21 |
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| 84 | 84 | | ‘‘(B) such publication primarily serves the 22 |
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| 85 | 85 | | needs of a regional or local community, 23 |
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| 86 | 86 | | ‘‘(C) the publisher of such publication— 24 |
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| 88 | 88 | | ssavage on LAPJG3WLY3PROD with BILLS 4 |
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| 89 | 89 | | •HR 1753 IH |
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| 90 | 90 | | ‘‘(i) employs at least one full-time 1 |
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| 91 | 91 | | local news journalist who resides in such 2 |
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| 92 | 92 | | regional or local community, 3 |
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| 93 | 93 | | ‘‘(ii) employs not greater than 750 4 |
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| 94 | 94 | | employees, and 5 |
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| 95 | 95 | | ‘‘(iii) is not— 6 |
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| 96 | 96 | | ‘‘(I) an organization described in 7 |
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| 97 | 97 | | paragraph (4), (5), or (6) of section 8 |
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| 98 | 98 | | 501(c), 9 |
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| 99 | 99 | | ‘‘(II) a political organization (as 10 |
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| 100 | 100 | | defined in section 527(e)), 11 |
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| 101 | 101 | | ‘‘(III) any organization controlled 12 |
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| 102 | 102 | | by one or more organizations de-13 |
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| 103 | 103 | | scribed in subclauses (I) or (II), or 14 |
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| 104 | 104 | | ‘‘(IV) any organization that re-15 |
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| 105 | 105 | | ceived more than $100,000 (in the ag-16 |
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| 106 | 106 | | gregate) from organizations described 17 |
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| 107 | 107 | | in subclauses (I), (II), or (III) during 18 |
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| 108 | 108 | | the taxable year or any preceding tax-19 |
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| 109 | 109 | | able year. 20 |
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| 110 | 110 | | ‘‘(2) L |
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| 111 | 111 | | OCAL NEWS JOURNALIST .—For purposes 21 |
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| 112 | 112 | | of paragraph (1)(C)(i), the term ‘local news jour-22 |
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| 113 | 113 | | nalist’ means any individual who regularly gathers, 23 |
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| 114 | 114 | | prepares, produces, collects, edits, photographs, 24 |
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| 115 | 115 | | records, directs the recording of, writes, presents, or 25 |
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| 117 | 117 | | ssavage on LAPJG3WLY3PROD with BILLS 5 |
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| 118 | 118 | | •HR 1753 IH |
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| 119 | 119 | | reports news or information that concerns local 1 |
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| 120 | 120 | | events or other matters of local public interest. 2 |
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| 121 | 121 | | ‘‘(3) A |
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| 122 | 122 | | GGREGATION RULE.— 3 |
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| 123 | 123 | | ‘‘(A) I |
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| 124 | 124 | | N GENERAL.—For purposes of 4 |
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| 125 | 125 | | clauses (ii) and (iii) of paragraph (1)(C), all 5 |
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| 126 | 126 | | persons treated as a single employer under sub-6 |
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| 127 | 127 | | section (a) or (b) of section 52, or subsection 7 |
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| 128 | 128 | | (m) or (o) of section 414, shall be treated as 8 |
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| 129 | 129 | | one person. 9 |
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| 130 | 130 | | ‘‘(B) E |
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| 131 | 131 | | XCEPTION.—Subparagraph (A) 10 |
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| 132 | 132 | | shall not apply unless such persons are involved 11 |
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| 133 | 133 | | in the production of the same print or digital 12 |
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| 134 | 134 | | publication. 13 |
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| 135 | 135 | | ‘‘(4) C |
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| 136 | 136 | | ONTINUOUS QUALIFICATION .—The re-14 |
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| 137 | 137 | | quirements of paragraph (1)(C) shall not be treated 15 |
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| 138 | 138 | | as met unless such requirements are met at all times 16 |
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| 139 | 139 | | during the period beginning on the date which is 1 17 |
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| 140 | 140 | | year before the date of the enactment of this section 18 |
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| 141 | 141 | | and ending on the date that the subscription de-19 |
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| 142 | 142 | | scribed in subsection (a) is paid or incurred. 20 |
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| 143 | 143 | | ‘‘(g) S |
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| 144 | 144 | | PECIALRULES.— 21 |
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| 145 | 145 | | ‘‘(1) D |
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| 146 | 146 | | ENIAL OF DOUBLE BENEFIT .—No deduc-22 |
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| 147 | 147 | | tion shall be allowed for any qualified local media 23 |
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| 148 | 148 | | advertising expenses otherwise allowable as a deduc-24 |
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| 149 | 149 | | tion for the taxable year which is equal to the 25 |
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| 151 | 151 | | ssavage on LAPJG3WLY3PROD with BILLS 6 |
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| 152 | 152 | | •HR 1753 IH |
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| 153 | 153 | | amount of the credit determined for such taxable 1 |
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| 154 | 154 | | year under subsection (a). 2 |
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| 155 | 155 | | ‘‘(2) A |
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| 156 | 156 | | GGREGATION RULE.—All persons treated 3 |
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| 157 | 157 | | as a single employer under subsection (a) or (b) of 4 |
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| 158 | 158 | | section 52 of the Internal Revenue Code of 1986, or 5 |
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| 159 | 159 | | subsection (m) or (o) of section 414 of such Code, 6 |
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| 160 | 160 | | shall be treated as one person for purposes of apply-7 |
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| 161 | 161 | | ing subsection (b). 8 |
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| 162 | 162 | | ‘‘(h) T |
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| 163 | 163 | | ERMINATION.—No credit shall be allowed 9 |
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| 164 | 164 | | under this section for any amount paid or incurred in a 10 |
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| 165 | 165 | | taxable year ending after the close of 5-year period begin-11 |
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| 166 | 166 | | ning on the date of the enactment of this section.’’. 12 |
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| 167 | 167 | | (b) C |
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| 168 | 168 | | REDITALLOWED ASPART OFGENERALBUSI-13 |
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| 169 | 169 | | NESSCREDIT.—Section 38(b) of such Code is amended 14 |
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| 170 | 170 | | by striking ‘‘plus’’ at the end of paragraph (40), by strik-15 |
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| 171 | 171 | | ing the period at the end of paragraph (41) and inserting 16 |
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| 172 | 172 | | ‘‘, plus’’, and by adding at the end the following new para-17 |
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| 173 | 173 | | graph: 18 |
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| 174 | 174 | | ‘‘(42) in the case of an eligible small business, 19 |
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| 175 | 175 | | the local media advertising credit determined under 20 |
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| 176 | 176 | | section 45BB(a).’’. 21 |
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| 177 | 177 | | (c) C |
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| 178 | 178 | | LERICALAMENDMENT.—The table of sections 22 |
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| 179 | 179 | | for subpart D of part IV of subchapter A of chapter 1 23 |
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| 180 | 180 | | of such Code is amended by adding at the end the fol-24 |
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| 181 | 181 | | lowing new item: 25 |
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| 182 | 182 | | ‘‘Sec. 45BB. Advertising in local media.’’. |
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| 184 | 184 | | ssavage on LAPJG3WLY3PROD with BILLS 7 |
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| 185 | 185 | | •HR 1753 IH |
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| 186 | 186 | | (d) EFFECTIVEDATE.—The amendments made by 1 |
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| 187 | 187 | | this section shall apply to amounts paid or incurred in tax-2 |
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| 188 | 188 | | able years beginning after the date of the enactment of 3 |
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| 189 | 189 | | this Act. 4 |
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| 190 | 190 | | SEC. 3. PAYROLL CREDIT FOR COMPENSATION OF LOCAL 5 |
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| 191 | 191 | | NEWS JOURNALIST. 6 |
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| 192 | 192 | | (a) I |
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| 193 | 193 | | NGENERAL.—Subchapter D of chapter 21 of the 7 |
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| 194 | 194 | | Internal Revenue Code of 1986 is amended by adding at 8 |
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| 195 | 195 | | the end the following new section: 9 |
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| 196 | 196 | | ‘‘SEC. 3135. LOCAL NEWS JOURNALIST COMPENSATION 10 |
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| 197 | 197 | | CREDIT. 11 |
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| 198 | 198 | | ‘‘(a) I |
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| 199 | 199 | | NGENERAL.—In the case of an eligible local 12 |
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| 200 | 200 | | news journalist employer, there shall be allowed as a credit 13 |
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| 201 | 201 | | against applicable employment taxes for each calendar 14 |
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| 202 | 202 | | quarter an amount equal to the applicable percentage of 15 |
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| 203 | 203 | | the wages paid by such employer to local news journalists 16 |
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| 204 | 204 | | for such calendar quarter. 17 |
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| 205 | 205 | | ‘‘(b) L |
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| 206 | 206 | | IMITATIONS ANDREFUNDABILITY.— 18 |
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| 207 | 207 | | ‘‘(1) L |
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| 208 | 208 | | IMITATION ON NUMBER OF LOCAL NEWS 19 |
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| 209 | 209 | | JOURNALISTS TAKEN INTO ACCOUNT .—The number 20 |
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| 210 | 210 | | of employees of any eligible local news journalist em-21 |
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| 211 | 211 | | ployer which are taken into account as local news 22 |
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| 212 | 212 | | journalists under subsection (a) for any calendar 23 |
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| 213 | 213 | | quarter shall not exceed 1,500. 24 |
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| 215 | 215 | | ssavage on LAPJG3WLY3PROD with BILLS 8 |
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| 216 | 216 | | •HR 1753 IH |
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| 217 | 217 | | ‘‘(2) LIMITATION ON WAGES TAKEN INTO AC -1 |
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| 218 | 218 | | COUNT.—The amount of wages paid with respect to 2 |
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| 219 | 219 | | any individual which may be taken into account 3 |
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| 220 | 220 | | under subsection (a) during any calendar quarter by 4 |
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| 221 | 221 | | the eligible local news journalist employer shall not 5 |
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| 222 | 222 | | exceed $12,500. 6 |
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| 223 | 223 | | ‘‘(3) C |
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| 224 | 224 | | REDIT LIMITED TO EMPLOYMENT 7 |
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| 225 | 225 | | TAXES.—The credit allowed by subsection (a) with 8 |
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| 226 | 226 | | respect to any calendar quarter shall not exceed the 9 |
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| 227 | 227 | | applicable employment taxes (reduced by any credits 10 |
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| 228 | 228 | | allowed under sections 3131, 3132, and 3134) on 11 |
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| 229 | 229 | | the wages paid with respect to the employment of all 12 |
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| 230 | 230 | | the employees of the eligible local news journalist 13 |
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| 231 | 231 | | employer for such calendar quarter. 14 |
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| 232 | 232 | | ‘‘(4) R |
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| 233 | 233 | | EFUNDABILITY OF EXCESS CREDIT .—If 15 |
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| 234 | 234 | | the amount of the credit under subsection (a) ex-16 |
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| 235 | 235 | | ceeds the limitation of paragraph (3) for any cal-17 |
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| 236 | 236 | | endar quarter, such excess shall be treated as an 18 |
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| 237 | 237 | | overpayment that shall be refunded under sections 19 |
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| 238 | 238 | | 6402(a) and 6413(b). 20 |
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| 239 | 239 | | ‘‘(c) D |
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| 240 | 240 | | EFINITIONS.—For purposes of this section— 21 |
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| 241 | 241 | | ‘‘(1) A |
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| 242 | 242 | | PPLICABLE PERCENTAGE .—The term 22 |
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| 243 | 243 | | ‘applicable percentage’ means— 23 |
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| 245 | 245 | | ssavage on LAPJG3WLY3PROD with BILLS 9 |
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| 246 | 246 | | •HR 1753 IH |
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| 247 | 247 | | ‘‘(A) in the case of each of the first 4 cal-1 |
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| 248 | 248 | | endar quarters to which this section applies, 50 2 |
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| 249 | 249 | | percent; and 3 |
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| 250 | 250 | | ‘‘(B) in the case of each calendar quarter 4 |
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| 251 | 251 | | thereafter, 30 percent. 5 |
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| 252 | 252 | | ‘‘(2) E |
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| 253 | 253 | | LIGIBLE LOCAL NEWS JOURNALIST EM -6 |
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| 254 | 254 | | PLOYER.—The term ‘eligible local news journalist 7 |
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| 255 | 255 | | employer’ means, with respect to any calendar quar-8 |
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| 256 | 256 | | ter, any employer if substantially all of the gross re-9 |
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| 257 | 257 | | ceipts of such employer for such calendar quarter 10 |
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| 258 | 258 | | are derived in the trade or business of publishing 11 |
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| 259 | 259 | | local newspapers (as defined in section 45BB(f)). 12 |
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| 260 | 260 | | ‘‘(3) L |
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| 261 | 261 | | OCAL NEWS JOURNALIST .—The term 13 |
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| 262 | 262 | | ‘local news journalist’ means, with respect to any eli-14 |
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| 263 | 263 | | gible local news journalist employer for any calendar 15 |
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| 264 | 264 | | quarter, any individual who provides at least 200 16 |
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| 265 | 265 | | hours of service as a local news journalist (as de-17 |
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| 266 | 266 | | fined in section 45BB(f)(2)) during such calendar 18 |
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| 267 | 267 | | quarter to such eligible local news journalist em-19 |
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| 268 | 268 | | ployer. 20 |
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| 269 | 269 | | ‘‘(4) A |
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| 270 | 270 | | PPLICABLE EMPLOYMENT TAXES .—The 21 |
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| 271 | 271 | | term ‘applicable employment taxes’ means the fol-22 |
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| 272 | 272 | | lowing: 23 |
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| 273 | 273 | | ‘‘(A) The taxes imposed under section 24 |
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| 274 | 274 | | 3111(b). 25 |
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| 276 | 276 | | ssavage on LAPJG3WLY3PROD with BILLS 10 |
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| 277 | 277 | | •HR 1753 IH |
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| 278 | 278 | | ‘‘(B) So much of the taxes imposed under 1 |
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| 279 | 279 | | section 3221(a) as are attributable to the rate 2 |
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| 280 | 280 | | in effect under section 3111(b). 3 |
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| 281 | 281 | | ‘‘(d) A |
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| 282 | 282 | | GGREGATIONRULE.— 4 |
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| 283 | 283 | | ‘‘(1) I |
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| 284 | 284 | | N GENERAL.—All persons treated as a 5 |
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| 285 | 285 | | single employer under subsection (a) or (b) of sec-6 |
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| 286 | 286 | | tion 52 of the Internal Revenue Code of 1986, or 7 |
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| 287 | 287 | | subsection (m) or (o) of section 414 of such Code, 8 |
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| 288 | 288 | | shall be treated as one employer for purposes of this 9 |
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| 289 | 289 | | section. 10 |
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| 290 | 290 | | ‘‘(2) E |
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| 291 | 291 | | XCEPTION.—Paragraph (1) shall not 11 |
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| 292 | 292 | | apply unless such persons are involved in the pro-12 |
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| 293 | 293 | | duction of the same print or digital publication. 13 |
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| 294 | 294 | | ‘‘(e) C |
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| 295 | 295 | | ERTAINRULES TOAPPLY.—For purposes of 14 |
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| 296 | 296 | | this section— 15 |
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| 297 | 297 | | ‘‘(1) I |
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| 298 | 298 | | N GENERAL.—Rules similar to the rules 16 |
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| 299 | 299 | | of sections 51(i)(1) and 280C(a) of the Internal 17 |
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| 300 | 300 | | Revenue Code of 1986 shall apply. 18 |
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| 301 | 301 | | ‘‘(2) E |
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| 302 | 302 | | XCEPTION TO RELATED PARTY RULES .— 19 |
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| 303 | 303 | | In the case of an eligible local news journalist em-20 |
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| 304 | 304 | | ployer which employs fewer than 15 local news jour-21 |
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| 305 | 305 | | nalists during the calendar quarter, paragraph (1) 22 |
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| 306 | 306 | | shall be applied without regard to the reference to 23 |
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| 307 | 307 | | section 51(i)(1). 24 |
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| 309 | 309 | | ssavage on LAPJG3WLY3PROD with BILLS 11 |
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| 310 | 310 | | •HR 1753 IH |
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| 311 | 311 | | ‘‘(f) CERTAINGOVERNMENTAL EMPLOYERS.—This 1 |
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| 312 | 312 | | credit shall not apply to the Government of the United 2 |
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| 313 | 313 | | States, the government of any State or political subdivi-3 |
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| 314 | 314 | | sion thereof, or any agency or instrumentality of any of 4 |
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| 315 | 315 | | the foregoing. 5 |
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| 316 | 316 | | ‘‘(g) E |
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| 317 | 317 | | LECTION TOHAVESECTIONNOTAPPLY.— 6 |
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| 318 | 318 | | This section shall not apply with respect to any eligible 7 |
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| 319 | 319 | | local news journalist employer for any calendar quarter 8 |
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| 320 | 320 | | if such person elects (at such time and in such manner 9 |
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| 321 | 321 | | as the Secretary may prescribe) not to have this section 10 |
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| 322 | 322 | | apply. 11 |
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| 323 | 323 | | ‘‘(h) S |
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| 324 | 324 | | PECIALRULES.— 12 |
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| 325 | 325 | | ‘‘(1) E |
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| 326 | 326 | | MPLOYEE NOT TAKEN INTO ACCOUNT 13 |
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| 327 | 327 | | MORE THAN ONCE .—An employee shall not be in-14 |
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| 328 | 328 | | cluded for purposes of this section for any period 15 |
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| 329 | 329 | | with respect to any employer if such employer is al-16 |
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| 330 | 330 | | lowed a credit under section 51 of the Internal Rev-17 |
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| 331 | 331 | | enue Code of 1986 with respect to such employee for 18 |
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| 332 | 332 | | such period. 19 |
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| 333 | 333 | | ‘‘(2) D |
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| 334 | 334 | | ENIAL OF DOUBLE BENEFIT .—Any 20 |
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| 335 | 335 | | wages taken into account in determining the credit 21 |
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| 336 | 336 | | allowed under this section shall not be taken into ac-22 |
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| 337 | 337 | | count for purposes of determining the credit allowed 23 |
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| 338 | 338 | | under section 41, 45A, 45P, 45S, or 1396. 24 |
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| 340 | 340 | | ssavage on LAPJG3WLY3PROD with BILLS 12 |
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| 341 | 341 | | •HR 1753 IH |
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| 342 | 342 | | ‘‘(3) THIRD-PARTY PAYORS.—Any credit al-1 |
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| 343 | 343 | | lowed under this section shall be treated as a credit 2 |
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| 344 | 344 | | described in section 3511(d)(2). 3 |
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| 345 | 345 | | ‘‘(4) T |
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| 346 | 346 | | REATMENT OF DEPOSITS .—The Sec-4 |
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| 347 | 347 | | retary shall waive any penalty under section 6656 of 5 |
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| 348 | 348 | | the Internal Revenue Code of 1986 for any failure 6 |
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| 349 | 349 | | to make a deposit of any applicable employment 7 |
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| 350 | 350 | | taxes if the Secretary determines that such failure 8 |
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| 351 | 351 | | was due to the reasonable anticipation of the credit 9 |
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| 352 | 352 | | allowed under this section. 10 |
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| 353 | 353 | | ‘‘(5) E |
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| 354 | 354 | | XTENSION OF LIMITATION ON ASSESS -11 |
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| 355 | 355 | | MENT.—Notwithstanding section 6501, the limita-12 |
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| 356 | 356 | | tion on the time period for the assessment of any 13 |
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| 357 | 357 | | amount attributable to a credit claimed under this 14 |
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| 358 | 358 | | section shall not expire before the date that is 5 15 |
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| 359 | 359 | | years after the later of— 16 |
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| 360 | 360 | | ‘‘(A) the date on which the original return 17 |
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| 361 | 361 | | which includes the calendar quarter with re-18 |
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| 362 | 362 | | spect to which such credit is determined is filed, 19 |
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| 363 | 363 | | or 20 |
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| 364 | 364 | | ‘‘(B) the date on which such return is 21 |
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| 365 | 365 | | treated as filed under section 6501(b)(2). 22 |
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| 366 | 366 | | ‘‘(i) R |
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| 367 | 367 | | EGULATIONS AND GUIDANCE.—The Secretary 23 |
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| 368 | 368 | | shall issue such forms, instructions, regulations, and guid-24 |
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| 369 | 369 | | ance as are necessary— 25 |
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| 371 | 371 | | ssavage on LAPJG3WLY3PROD with BILLS 13 |
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| 372 | 372 | | •HR 1753 IH |
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| 373 | 373 | | ‘‘(1) with respect to the application of the cred-1 |
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| 374 | 374 | | it under subsection (a) to third-party payors (includ-2 |
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| 375 | 375 | | ing professional employer organizations, certified 3 |
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| 376 | 376 | | professional employer organizations, or agents under 4 |
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| 377 | 377 | | section 3504 of the Internal Revenue Code of 1986), 5 |
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| 378 | 378 | | including regulations or guidance allowing such 6 |
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| 379 | 379 | | payors to submit documentation necessary to sub-7 |
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| 380 | 380 | | stantiate the eligible employer status of employers 8 |
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| 381 | 381 | | that use such payors, and 9 |
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| 382 | 382 | | ‘‘(2) to prevent the avoidance of the purposes of 10 |
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| 383 | 383 | | the limitations under this section, including through 11 |
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| 384 | 384 | | the leaseback of employees. 12 |
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| 385 | 385 | | Any forms, instructions, regulations, or other guidance de-13 |
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| 386 | 386 | | scribed in paragraph (2) shall require the customer to be 14 |
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| 387 | 387 | | responsible for the accounting of the credit and for any 15 |
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| 388 | 388 | | liability for improperly claimed credits and shall require 16 |
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| 389 | 389 | | the certified professional employer organization or other 17 |
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| 390 | 390 | | third party payor to accurately report such tax credits 18 |
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| 391 | 391 | | based on the information provided by the customer. 19 |
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| 392 | 392 | | ‘‘(j) A |
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| 393 | 393 | | PPLICATION.—This section shall not apply to 20 |
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| 394 | 394 | | any calendar quarter beginning more than 5 years after 21 |
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| 395 | 395 | | the date of the enactment of this section.’’. 22 |
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| 396 | 396 | | (b) C |
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| 397 | 397 | | ONFORMINGAMENDMENTS.— 23 |
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| 400 | 400 | | •HR 1753 IH |
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| 401 | 401 | | (1) Section 1324(b)(2) of title 31, United 1 |
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| 402 | 402 | | States Code, is amended by inserting ‘‘3135,’’ after 2 |
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| 403 | 403 | | ‘‘3134,’’. 3 |
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| 404 | 404 | | (2) The table of sections for subchapter D of 4 |
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| 405 | 405 | | chapter 21 of the Internal Revenue Code of 1986 is 5 |
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| 406 | 406 | | amended by adding at the end the following: 6 |
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| 407 | 407 | | ‘‘Sec. 3135. Local news journalist compensation credit.’’. |
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| 408 | 408 | | (c) EFFECTIVEDATE.—The amendments made by 7 |
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| 409 | 409 | | this section shall apply to calendar quarters beginning 8 |
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| 410 | 410 | | after the date of the enactment of this Act. 9 |
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| 411 | 411 | | Æ |
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