Uodated at 5:15pm ET
WASHINGTON, D.C. — The U.S. House of Representatives has voted in favor of the Biden Administration’s “Build Back Better” reconciliation package — a bill that includes provisions in the Local Journalism Sustainability Act.
The LJSA allows a local news journalist employer a payroll credit for wages paid to local news journalists.
Originally, it included language that gave individual taxpayers a tax credit up to $250 in any taxable year for subscriptions to one or more local newspapers for the taxpayer’s personal use. That’s now absent, as is language that would have allowed “certain small businesses” a tax credit for amounts paid for advertising in a local newspaper or through a broadcast of a radio or television station serving a local community.
“The focus is solely on local journalism and all that goes into that,” notes LJSA supporter Michael Lee, Executive Director of the LPTV Broadcasters Association, which advocates for low-power TV stations across the U.S.
The Local Journalism Sustainability Act was introduced on July 22 by Sen. Maria Cantwell (D-Wash.), and in the House on June 16 by Arizona Democrat Ann Kirkpatrick. Her district is mainly to the east of Tucson.
With the House passing the nearly $2.2 trillion package on a 220-213 Democrats-in-unity vote, the Senate will now vote on it — and, likely, amend it. Key Democratic Senators Joe Manchin, of West Virginia, and Krysten Sinema, of Arizona, could vote alongside Republicans adamant on stopping a big-dollar budget from receiving a Congressional OK.
To illustrate how much Republicans dislike the reconciliation package, House Minority Leader Kevin McCarthy (R-Calif.) stalled for nearly 9 hours on Thursday night and early Friday morning with an extended speech; a filibuster can only be conducted in the Senate.
For former Oregon Senator Gordon Smith, a Republican, House passage of the Build Back Better package was cheered, if only for its LJSA inclusion. “The Local Journalism Sustainability Act will provide meaningful incentives for local broadcast stations to hire and retain the newsgatherers who keep our communities informed, connected and engaged,” the soon-to-retire NAB President/CEO said. “This bill would allow radio and television stations to employ additional journalists to report on the events, issues and emergencies affecting our nation.”
The LJSA would support local news production by television and radio broadcasters, as well as certain print and digital publications, by making a tax credit available for the hiring and retention of up to 1,500 local news journalists per company each year over five years.
A broadcaster would qualify by owning or operating a broadcast station and employing local news journalists who work no less than 30 hours per week engaging in activities related to developing and providing local news to the community.
The local news journalist must also reside within 50 miles of the station’s local community.
