1986 is amended by inserting after section 25D the fol-
lowing new section: 
‘‘SEC. 25E. LOCAL NEWSPAPER SUBSCRIPTIONS. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to 
the applicable percentage of amounts paid or incurred for 
subscriptions to one or more local newspapers for the per-
sonal use of the taxpayer. 
‘‘(b) ANNUAL DOLLAR LIMITATION.—The credit al-
lowed under subsection (a) to any taxpayer for any taxable 
year shall not exceed $250. 
‘‘(c) APPLICABLE PERCENTAGE.—For purposes of 
this section, the term ‘applicable percentage’ means— 
‘‘(1) in the case of the first taxable year to 
which this section applies, 80 percent, and 
‘‘(2) in the case of any subsequent taxable year, 
50 percent. 
‘‘(d) LOCAL NEWSPAPER.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘local newspaper’ 
means any print or digital publication if— 
‘‘(A) the primary content of such publica-
tion is news and current events, and 
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‘‘(B) at least 51 percent of the readers of 
such publication (including both print and dig-
ital versions) reside in— 
‘‘(i) a single State or a single posses-
sion of the United States, or 
‘‘(ii) a single area with a 200-mile ra-
dius. 
‘‘(2) CONTINUOUS
QUALIFICATION.—The re-
quirements of subparagraphs (A) and (B) of para-
graph (1) shall not be treated as met unless such re-
quirements are met at all times during the period 
beginning on the date which is 2 years before the 
date of the enactment of this section and ending on 
the date that the subscription described in sub-
section (a) is paid or incurred. 
‘‘(3) APPLICATION TO CERTAIN ORGANIZATIONS 
EXEMPT FROM TAX.—In the case of any print or 
digital publication which is published by any organi-
zation described in section 501(c) and exempt from 
tax under section 501(a)— 
‘‘(A) such publication shall be treated as a 
local newspaper only if the publication of print 
and digital publications is the primary activity 
of such organization, and 
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‘‘(B) any person making a charitable con-
tribution (as defined in section 170(c)) to such 
organization may elect to treat such contribu-
tion as an amount paid or incurred for a sub-
scription to which this section applies in lieu of 
treating such contribution as a charitable con-
tribution for purposes of section 170. 
‘‘(e) TERMINATION.—No credit shall be allowed 
under this section for any amount paid or incurred in a 
taxable year ending after the close of 5-year period begin-
ning on the date of the enactment of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
is amended by inserting after the item relating to section 
25D the following new item: 
‘‘Sec. 25E. Local newpaper subscriptions.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years ending after the date of the enactment of this 
Act. 
SEC. 3. PAYROLL CREDIT FOR COMPENSATION OF JOUR-
NALISTS. 
(a) IN GENERAL.—In the case of an eligible news-
paper employer, there shall be allowed as a credit against 
the taxes imposed by section 3111(a) of the Internal Rev-
enue Code of 1986 for each calendar quarter an amount 
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equal to the applicable percentage of the qualified jour-
nalism compensation paid to each individual for such cal-
endar quarter. 
(b) LIMITATIONS AND REFUNDABILITY.— 
(1) COMPENSATION TAKEN INTO ACCOUNT.— 
The amount of qualified journalism compensation 
paid with respect to any individual which may be 
taken into account under subsection (a) during any 
calendar quarter by the eligible newspaper employer 
shall not exceed $12,500. 
(2) 
CREDIT
LIMITED
TO
EMPLOYMENT 
TAXES.—The credit allowed by subsection (a) with 
respect to any calendar quarter shall not exceed the 
applicable employment taxes (reduced by any credits 
allowed under subsections (e) and (f) of section 
3111 of the Internal Revenue Code of 1986, sections 
7001 and 7003 of the Families First Coronavirus 
Response Act, and section 2301 of the CARES Act) 
on the wages paid with respect to the employment 
of all the employees of the eligible newspaper em-
ployer for such calendar quarter. 
(3) REFUNDABILITY OF EXCESS CREDIT.— 
(A) IN GENERAL.—If the amount of the 
credit under subsection (a) exceeds the limita-
tion of paragraph (2) for any calendar quarter, 
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such excess shall be treated as an overpayment 
that shall be refunded under sections 6402(a) 
and 6413(b) of the Internal Revenue Code of 
1986. 
(B) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324 of title 31, United States 
Code, any amounts due to the employer under 
this paragraph shall be treated in the same 
manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section. 
(c) DEFINITIONS.—For purposes of this section— 
(1) APPLICABLE PERCENTAGE.—The term ‘‘ap-
plicable percentage’’ means— 
(A) in the case of each of the first 4 cal-
endar quarters to which this section applies, 50 
percent; and 
(B) in the case of each calendar quarter 
thereafter, 30 percent. 
(2) ELIGIBLE
NEWSPAPER
EMPLOYER.—The 
term ‘‘eligible newspaper employer’’ means, with re-
spect to any calendar quarter, any employer if sub-
stantially all of the gross receipts of such employer 
for such calendar quarter are derived from the trade 
or business of publishing print or digital publica-
tions— 
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(A) the primary content of which is news 
and current events; and 
(B) at least 51 percent of the readers of 
which reside in— 
(i) a single State or a single posses-
sion of the United States; or 
(ii) a single area with a 200-mile ra-
dius. 
(3) QUALIFIED JOURNALISM COMPENSATION.— 
(A) IN
GENERAL.—The term ‘‘qualified 
journalism compensation’’ means— 
(i) wages paid by an eligible news-
paper employer to an employee for service 
as a journalist; and 
(ii) in the case of remuneration paid 
to an individual who is not an employee of 
the employer, such remuneration as would 
described in clause (i) if such individual 
were such an employee. 
(B) JOURNALIST.—The term ‘‘journalist’’ 
means any individual who regularly gathers, 
prepares, collects, photographs, records, writes, 
edits, reports, or publishes news or information 
that concerns local, national, or international 
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events or other matters of public interest for 
dissemination to the public. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury or the Secretary’s del-
egate. 
(5) OTHER TERMS.—Any term used in this sec-
tion which is also used in chapter 21 of the Internal 
Revenue Code of 1986 shall have the same meaning 
as when used in such chapter. 
(d) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (a) or (b) of section 52 
of the Internal Revenue Code of 1986, or subsection (m) 
or (o) of section 414 of such Code, shall be treated as 
one employer for purposes of this section. 
(e) CERTAIN RULES TO APPLY.—For purposes of 
this section, rules similar to the rules of sections 51(i)(1) 
and 280C(a) of the Internal Revenue Code of 1986 shall 
apply. 
(f) CERTAIN GOVERNMENTAL EMPLOYERS.—This 
credit shall not apply to the Government of the United 
States, the government of any State or political subdivi-
sion thereof, or any agency or instrumentality of any of 
the foregoing. 
(g) ELECTION TO HAVE SECTION NOT APPLY.— 
This section shall not apply with respect to any eligible 
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newspaper employer for any calendar quarter if such em-
ployer elects (at such time and in such manner as the Sec-
retary may prescribe) not to have this section apply. 
(h) SPECIAL RULES.— 
(1) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT 
MORE THAN ONCE.—An employee shall not be in-
cluded for purposes of this section for any period 
with respect to any employer if such employer is al-
lowed a credit under section 51 of the Internal Rev-
enue Code of 1986 with respect to such employee for 
such period. 
(2) DENIAL OF DOUBLE BENEFIT.—Any wages 
taken into account in determining the credit allowed 
under this section shall not be taken into account for 
purposes of determining the credit allowed under 
section 45S of such Code. 
(3) THIRD-PARTY PAYORS.—Any credit allowed 
under this section shall be treated as a credit de-
scribed in section 3511(d)(2) of such Code. 
(i) TRANSFERS TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—There are hereby ap-
propriated to the Federal Old-Age and Survivors Insur-
ance Trust Fund and the Federal Disability Insurance 
Trust Fund established under section 201 of the Social 
Security Act (42 U.S.C. 401) amounts equal to the reduc-
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tion in revenues to the Treasury by reason of this section 
(without regard to this subsection). Amounts appropriated 
by the preceding sentence shall be transferred from the 
general fund at such times and in such manner as to rep-
licate to the extent possible the transfers which would have 
occurred to such Trust Fund or Account had this section 
not been enacted. 
(j) TREATMENT OF DEPOSITS.—The Secretary shall 
waive any penalty under section 6656 of the Internal Rev-
enue Code of 1986 for any failure to make a deposit of 
any applicable employment taxes if the Secretary deter-
mines that such failure was due to the reasonable anticipa-
tion of the credit allowed under this section. 
(k) REGULATIONS AND GUIDANCE.—The Secretary 
shall issue such forms, instructions, regulations, and guid-
ance as are necessary— 
(1) to allow the advance payment of the credit 
under subsection (a), subject to the limitations pro-
vided in this section, based on such information as 
the Secretary shall require; 
(2) to provide for the reconciliation of such ad-
vance payment with the amount advanced at the 
time of filing the return of tax for the applicable cal-
endar quarter or taxable year; and 
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(3) with respect to the application of the credit 
under subsection (a) to third-party payors (including 
professional employer organizations, certified profes-
sional employer organizations, or agents under sec-
tion 3504 of the Internal Revenue Code of 1986), 
including regulations or guidance allowing such 
payors to submit documentation necessary to sub-
stantiate the eligible employer status of employers 
that use such payors. 
(l) APPLICATION.—This section shall only apply to 
the first 20 calendar quarters beginning after the date of 
the enactment of this Act. 
SEC. 4. CREDIT FOR ADVERTISING IN LOCAL NEWSPAPERS 
AND LOCAL MEDIA. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45U. ADVERTISING IN LOCAL NEWSPAPERS AND 
LOCAL MEDIA. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of any eligible small business, the local media ad-
vertising credit determined under this section for any tax-
able year is an amount equal to the applicable percentage 
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of the qualified local media advertising expenses paid or 
incurred by the taxpayer during such taxable year. 
‘‘(b) LIMITATION.—The credit allowed under sub-
section (a) to any taxpayer for any taxable year shall not 
exceed— 
‘‘(1) in the case of the first taxable year to 
which this section applies, $5,000, and 
‘‘(2) in the case of any subsequent taxable year, 
$2,500. 
‘‘(c) APPLICABLE PERCENTAGE.—For purposes of 
this section, the term ‘applicable percentage’ means— 
‘‘(1) in the case of the first taxable year to 
which this section applies, 80 percent, and 
‘‘(2) in the case of any subsequent taxable year, 
50 percent. 
‘‘(d) ELIGIBLE SMALL BUSINESS.—For purposes of 
this section, the term ‘eligible small business’ means any 
person for any taxable year if the average number of full- 
time employees (as determined for purposes of deter-
mining whether an employer is an applicable large em-
ployer for purposes of section 4980H(c)(2) of the Internal 
Revenue Code of 1986) employed by such person during 
such taxable year was less than 1,000. 
‘‘(e) QUALIFIED LOCAL MEDIA ADVERTISING EX-
PENSES.—For purposes of this section— 
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