Committee hears small‑business tax credit for advertising with local news organizations

The Committee on Taxation heard House Bill 2,276, which would create a tax credit to incentivize small businesses to purchase advertising from qualifying local news organizations for tax years 2026 through 2029.

Bill summary: Under the reviser’s overview, the credit would be 50 percent of qualified local news advertising expenditures in the first year (maximum $5,000 per eligible taxpayer) and 20 percent for each subsequent year (maximum $2,500). Eligible taxpayers would be entities employing fewer than 50 full‑time employees in Kansas. The credit would carry forward up to 10 years. Taxpayers must submit a certification signed by the local news organization confirming the qualified purchase; false certifications would carry a penalty of $5,000 to $10,000 per false certification.

Fiscal estimate and assumptions: Kathleen Smith of the Department of Revenue presented the fiscal note, estimating a decrease in state general revenues of $3,300,000 in fiscal year 2027 and $2,300,000 in fiscal year 2028 based on an assumption that about 19,600 small businesses could be eligible and that 10 percent of them might claim the credit at the maximum in year one. The department further assumed about one‑third of credit amounts would be allowed against tax liabilities in the year claimed, producing the Department’s lower fiscal estimate.

Proponent testimony: Small‑business owners and local news representatives told the committee they expect the credit would encourage local advertising purchases and help community news outlets and Main Street businesses. Darren Keeter, a roofing contractor from Wichita, said a $5,000 credit would be reinvested immediately in local broadcast advertising and argued the money would stay in the state. Jeff Cott, a second‑generation weekly publisher and president of the Kansas Press Association, said the measure could help small advertisers afford fragmented media markets and would support local journalism.

Committee questions addressed scope and administration: Members asked whether digital platforms such as Google or Facebook would qualify if they target locally; the reviser noted the bill’s definition of “local news organization” would need further specification and suggested consideration of membership criteria such as Kansas Press Association or Kansas Broadcasters Association affiliations when drafting. Members also asked about auditing capacity; the Department of Revenue said audits could verify expenditures if the program were audited but that routine, regular audits at scale would not be feasible with current staffing.

No formal committee vote was taken on the bill at this hearing. The committee heard several proponent witnesses and received written testimony from additional supporters and one written opponent.

Ending note: Sponsors and supporters described the proposal as modest relief for small advertisers and a potential source of revenue retention for local media; the fiscal note frames the potential cost to the state if uptake is higher than estimated.