Committee advances bill to expand media jobs tax credit to additional entities; members warn about competition for finite credits

A bill sponsored by Senator Oyleman Seagal to amend the Economic Development Law and the Tax Law — changing the definition of “business entity” and expanding the newspaper and broadcast media jobs tax credit to include additional entities — was reported out of the Senate standing committee on commerce, economic development and small business after members debated competitive effects on a limited pool of tax credits.

Senator Oyleman Seagal introduced the measure as the committee's sixth and final bill. Senator Burrell, who identified support for the bill’s intent to help small for-profit weekly newspapers in rural districts, asked whether expanding eligibility to nonprofit broadcasters and larger nonprofit outlets would shift scarce credits away from small local papers.

“I was very supportive of the idea of of this initially with these for profit, these small, particularly in my district, these small, like, weekly newspapers and so forth that, are really our only source of local news anymore in our rural areas. My concern with this is is, you know, this is now expanding it to, like, not for profits,” Senator Burrell said, adding that larger nonprofit outlets may have greater resources to compete for a finite pool of credits.

Committee discussion confirmed the tax credit pool is finite and that existing program limits on independent ownership and operation remain in place; one member said the bill does not change those limits. Senator Burrell urged further refinement of eligibility criteria, and another member noted the committee had expanded the program in the previous year.

Senator Sean Ryan moved the bill; Senator Baskin seconded. The committee reported the bill out of committee. During the roll call the chair asked for opposing votes and one member was recorded as opposed. The chair then inquired about members who wished to register “advice without recommendation.” The bill was reported out and will proceed for further consideration.

Why it matters: Committee members expressed concern that broadening eligibility to include certain not-for-profit organizations, which may already receive other subsidies, could increase competition for a finite credit pool and reduce the program’s targeted support for small, independent local news outlets.

Next steps: The bill advances out of committee and will be considered by the Senate; specifics about credit amounts, allocation mechanisms and any accompanying eligibility rules will determine potential fiscal impacts and which organizations ultimately benefit.