(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 
calendar quarters during the first 5 calendar years begin-
ning 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 50. 
‘‘(e) QUALIFIED LOCAL MEDIA ADVERTISING EX-
PENSES.—For purposes of this section— 
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‘‘(1) IN GENERAL.—The term ‘qualified local 
media advertising expenses’ means amounts paid or 
incurred in the ordinary course of a trade or busi-
ness for advertising in a local newspaper (as defined 
in section 25E(d)) or a broadcast of a local radio or 
television station. 
‘‘(2) LOCAL RADIO OR TELEVISION STATION.— 
The term ‘local radio or television station’ means 
any broadcast radio or television station licensed by 
the Federal Communications Commission to serve a 
local community. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion shall be allowed for any qualified local media 
advertising expenses otherwise allowable as a deduc-
tion for the taxable year which is equal to the 
amount of the credit determined for such taxable 
year under subsection (a). 
‘‘(2) 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. 
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‘‘(g) 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) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b), as amended by the pre-
ceding provisions of this Act, is further amended by strik-
ing ‘‘plus’’ at the end of paragraph (32), by striking the 
period at the end of paragraph (33) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(34) in the case of an eligible small business, 
the local media advertising credit determined under 
section 45U(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45U. Advertising in local newspapers and local media.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
Æ 
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