New York Invests in Local Journalism with $90 Million Tax Credit Initiative

In a significant move to bolster the dwindling local news industry, New York has introduced a pioneering tax credit program, earmarking up to $90 million to support journalism jobs. This initiative, a first in American history, aims to counteract the long-term decline of the U.S. newspaper sector, exacerbated by a shift from print to digital and a consequent drop in advertising revenue. The state's three-year scheme offers refundable tax credits annually, with eligible news outlets potentially receiving up to $320,000 each year.

State Sen. Brad Hoylman-Sigal, the Democrat behind the legislation, emphasized the importance of preserving journalism jobs for democracy's health. He highlighted the failure of New York's news media to scrutinize George Santos' background before his election to Congress as a case in point. The legislation, humorously referred to as the "George Santos Prevention Act" by some colleagues, seeks to prevent similar oversights in the future.

While primarily aimed at small community news sites, larger media organizations could also benefit from this program. However, it is currently limited to news outlets that are not publicly traded, with exceptions possible for those showing a decline in circulation. Hoylman-Sigal has expressed openness to expanding the legislation to include nonprofit and digital-only media outlets.

Jon Schleuss, president of the NewsGuild-CWA, lauded the initiative as a historic step towards supporting journalism jobs through tax credits. This move comes as lawmakers in various states explore different strategies to aid struggling news organizations. For instance, California and New Mexico have funded local news fellowship programs, while other states have proposed measures ranging from journalism scholarships to advertising revenue sharing with media companies.

New York's program is set to commence in 2025 and will allocate approximately $4 million for hiring new staff and about $26 million for staff retention. Newsrooms could receive $5,000 per new hire and up to $300,000 for retaining staff. State Sen. Jeremy Cooney stressed the critical role of trained journalists in maintaining democracy by holding public figures accountable.

Officials have assured that applications for the tax credit will not be judged based on government officials' opinions of the news coverage. Zachary Richner of the Empire State Local News Coalition expressed hope that the program's regulations would prioritize outlets most in need of support. Tom Wiley, publisher at The Buffalo News, believes that this tax credit will enable continued investment in frontline journalism, essential for an informed electorate amidst misinformation.

The introduction of this tax credit program represents a proactive approach to sustaining local journalism in New York and serves as a potential model for other states grappling with similar challenges in the news industry.