Subcommittee rewrites local advertising credit: 50% credit, $2,500 per-business cap proposed, $2.5–5M aggregate debated
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Summary
A Ways and Means subcommittee spent an extended session redrafting a local advertising tax credit (modeled on a Kansas statute). Members focused on definitions of eligible businesses and 'local news organizations,' a 50% credit for qualifying local advertising, a $2,500-per-business annual cap proposal, non-refundable use-it-or-lose-it design, and an aggregate cap in the $2.5–5 million range to limit fiscal exposure.
A subcommittee of Ways and Means used a Kansas-model draft as the basis for a line-by-line rewrite of a proposed local advertising credit intended to support local journalism. Key elements under discussion included:
- Eligible small business definition: committee discussed using FTE thresholds (e.g., under 50 FTE) to prioritize small businesses rather than large institutional advertisers.
- Qualified local news organization: the draft requires original local reporting (professional creation, editing, distribution on matters of public interest). Subcommittee members proposed using membership in recognized state press/broadcasters associations (e.g., New Hampshire Press Association or New Hampshire Association of Broadcasters) as a practical certification route.
- Types of eligible advertising: the committee added language to limit the credit to advertising carried by the locally owned and operated outlet (or underwriting in the case of public radio) so that credit dollars would support locally produced content rather than out-of-state platforms.
- Credit amount and caps: the subcommittee generally favored a 50% credit for qualifying local advertising expenditures; it proposed a modest per-business cap (the group coalesced around $2,500 per taxable year) to spread benefits among many small advertisers rather than a few large buyers. They discussed an aggregate program cap — members proposed a range of $2.5 million to $5 million annually and debated funding sources if the program proceeds.
- Administration: DRA agreed to prepare draft application and certification forms and processes. The subcommittee favored a first-come, first-served application process to allocate credit until the aggregate cap is reached and suggested the credit be non-refundable and not carry forward (use it or lose it) to encourage near-term advertising.
Subcommittee members agreed to produce final drafting language and circulate a draft amendment to the larger committee before March 2. They discussed funding options (tobacco tax increases, reallocation of other streams) but deferred a final funding decision until policymakers weigh fiscal tradeoffs.