Bill Text: NY S01865 | 2025-2026 | General Assembly | Introduced
Bill Title: Enacts the lift our communities advertise locally (LOCAL) program which provides a tax credit on advertising for locally owned minority-owned and women-owned business enterprises, certified service-disabled veteran-owned business enterprises or a small business.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2025-01-14 - REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS [S01865 Detail]
Download: New_York-2025-S01865-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1865 2025-2026 Regular Sessions IN SENATE January 14, 2025 ___________ Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Devel- opment and Small Business AN ACT to amend the economic development law and the tax law in relation to enacting the lift our communities advertise locally (LOCAL) program; and providing for the repeal of such provisions upon expira- tion thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "lift our communities advertise locally (LOCAL) program". 3 § 2. The economic development law is amended by adding a new article 4 28 to read as follows: 5 ARTICLE 28 6 LIFT OUR COMMUNITIES ADVERTISE LOCALLY PROGRAM 7 Section 500. Short title. 8 501. Definitions. 9 502. Application and approval process. 10 503. Local newspaper and broadcast media business advertising 11 tax credit. 12 504. Powers and duties of the commissioner. 13 § 500. Short title. This article shall be known and may be cited as 14 the "lift our communities advertise locally (LOCAL) program". 15 § 501. Definitions. For the purposes of this article: 16 1. "Certificate of tax credit" shall mean the document issued to an 17 eligible business by the department after the department has verified 18 that such eligible business has met all applicable eligibility criteria 19 under this article. The certificate shall specify the exact amount of 20 the tax credit under this article that an eligible business may claim, 21 pursuant to section five hundred three and section five hundred four of 22 this article. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02719-01-5S. 1865 2 1 2. "Eligible business" shall mean a minority-owned business enterprise 2 as defined in section three hundred ten of the executive law, a women- 3 owned business enterprise as defined in section three hundred ten of the 4 executive law, a certified service-disabled veteran-owned business 5 enterprise as defined in section forty of the veterans' services law, or 6 a small business as defined in this section. 7 3. "Excluded organization" shall mean: 8 (a) an organization described in subsection four, five or six of 9 section 501(c) of the United States internal revenue code; 10 (b) a political organization as defined in section 527(e) of the 11 United States internal revenue code; or 12 (c) any organizations that received more than one hundred thousand 13 dollars, in the aggregate, from organizations described in paragraph (a) 14 or (b) of this subdivision. 15 4. "Local news journalist" shall mean any resident of the state of New 16 York who regularly gathers, prepares, produces, collects, edits, photo- 17 graphs, records, directs the recording of, writes, presents, broadcasts, 18 prints, publishes or reports news or information that concerns local or 19 current events of a New York state county, town, village, city, or 20 hamlet, or any combination thereof. 21 5. "Local newspaper" shall mean a print or digital publication that: 22 (a) publishes news content that is primarily focused on local or 23 current events of a New York state county, town, village, city, or 24 hamlet, or any combination thereof, otherwise known as such local news- 25 paper's primary coverage area; 26 (b) employs at least one full-time local news journalist that resides 27 in, or within fifty miles of, the publication's primary coverage area; 28 (c) publishes and distributes local news content not less frequently 29 than once per week, and has done so continuously for the preceding 30 twelve-month period; 31 (d) carries valid libel or medial liability insurance; and 32 (e) for a local newspaper that distributes in only a digital format, 33 (i) earned revenue of at least one hundred thousand dollars in the 34 preceding taxable year and (ii) derives at least thirty-three percent of 35 its audience, averaged over the preceding twelve-month period, from its 36 primary coverage area. 37 5-a. For the purposes of this section, a print or digital publication 38 shall not be considered a local newspaper or broadcast media business if 39 such publication is: 40 (a) distributed or made available primarily for advertising or enter- 41 tainment purposes; or 42 (b) majority owned by, or derives at least fifty percent of its reven- 43 ue from, excluded organizations. 44 6. "Broadcast media business" shall mean any broadcast station which: 45 (a) owns or operates a broadcast station, as defined by section three 46 of the federal communications act of 1934; 47 (b) discloses its ownership to the public at such times and in such 48 manner as identified by the commissioner; 49 (c) broadcasts news content that is primarily focused on local or 50 current events of a New York state county, town, village, city, or 51 hamlet, or any combination thereof, otherwise known as such broadcast 52 media business' primary coverage area; 53 (d) employs at least one full-time local news journalist that resides 54 in, or within fifty miles of, the broadcast media business' primary 55 coverage area;S. 1865 3 1 (e) broadcasts local news content not less frequently than once per 2 week, and has done so continuously for the preceding twelve-month peri- 3 od; 4 (f) carries valid libel or media liability insurance; and 5 (g) for a broadcast media business that distributes in only a digital 6 format: (i) earned revenue of at least one hundred thousand dollars in 7 the preceding taxable year; and (ii) derives at least thirty-three 8 percent of its audience, averaged over the preceding twelve-month peri- 9 od, from its primary coverage area. 10 6-a. For the purposes of this section, a broadcast station shall not 11 be considered a broadcast media business if such broadcast station is: 12 (a) broadcast primarily for advertising or entertainment purposes; or 13 (b) majority owned by, or derives at least fifty percent of its revenue 14 from, excluded organizations. 15 7. "Advertising" shall mean providing consideration for the publica- 16 tion, broadcast, dissemination, solicitation, or circulation of visual, 17 aural, spoken, or written communication to directly or indirectly: (a) 18 induce any person or organization to purchase a good, program, product, 19 or service, or to contribute financially to a cause; or (b) raise aware- 20 ness of a brand, good, program, product, service, or issue. 21 8."Qualified local media advertising expenses" means amounts paid or 22 incurred in the ordinary course of a trade or business for advertising 23 using a product, service, or other offering that is fully owned and 24 operated by a local newspaper or broadcast media business. For the 25 purposes of this section, advertising distributed in a programmatic 26 fashion in a digital format shall not be considered qualified local 27 media advertising expenses. 28 9. "Small business" shall mean ten employees or fewer and shall be 29 deemed to be one which is resident in this state, independently owned 30 and operated and not dominant in its field. 31 § 502. Application and approval process. 1. An eligible business shall 32 submit a complete application as prescribed by the commissioner. 33 2. The commissioner shall establish procedures and a timeframe for 34 eligible businesses to submit applications. As part of the application, 35 each eligible business shall: 36 (a) provide evidence in a form and manner prescribed by the commis- 37 sioner of their status as an eligible business; 38 (b) agree to allow the department of taxation and finance to share the 39 eligible business's tax information with the department; 40 (c) agree to allow the department of labor to share its tax and 41 employer information with the department provided, however, any informa- 42 tion shared as a result of this program shall not be available for 43 disclosure or inspection under the state freedom of information law; 44 (d) allow the department and its agents access to any and all books 45 and records the department may require to monitor compliance; and 46 (e) agree to provide any additional information required by the 47 department relevant to this article. 48 3. After reviewing an eligible business's completed final application 49 and determining that such eligible business meets the eligibility crite- 50 ria as set forth in this article, the department may issue to such 51 eligible business a certificate of tax credit. An eligible business may 52 claim such tax credit. 53 § 503. Local newspaper and broadcast media business advertising tax 54 credit. 1. An eligible business that meets the eligibility requirements 55 of this article, and meets any additional eligibility criteria as 56 prescribed by regulations established pursuant to this section, may beS. 1865 4 1 eligible to claim a credit equaling eighty percent of such eligible 2 business's expenditures towards qualified local media advertising 3 expenses. Such expenditures towards qualified local media advertising 4 expenses used to calculate such credit shall not exceed five thousand 5 dollars. 6 2. The total amount of tax credits listed on certificates of tax cred- 7 it issued by the commissioner pursuant to this article shall not exceed 8 ten million dollars for each year the credit is available per eligible 9 business for the taxable year. Within this amount, six million dollars 10 shall be set aside for minority-owned business enterprises as defined in 11 section three hundred ten of the executive law, women-owned business 12 enterprises as defined in section three hundred ten of the executive law 13 and certified service-disabled veteran-owned business enterprise as 14 defined in section forty of the veterans' services law and four million 15 dollars shall be set aside for small businesses as defined in section 16 five hundred one of this article. Allocations may be utilized across the 17 above referenced businesses should either one be under-allocated. 18 3. The credit shall be allowed as provided in section fifty of the tax 19 law. 20 § 504. Powers and duties of the commissioner. 1. The commissioner 21 shall promulgate regulations establishing an application process and 22 eligibility criteria, that will be applied consistent with the purposes 23 of this article, so as not to exceed the annual cap on tax credits set 24 forth in this section which, notwithstanding any provisions to the 25 contrary in the state administrative procedure act, may be adopted on an 26 emergency basis. 27 2. The commissioner shall, in consultation with the department of 28 taxation and finance, develop a certificate of tax credit that shall be 29 issued by the commissioner to eligible businesses. Such certificate 30 shall contain such information as required by the department of taxation 31 and finance. 32 3. The commissioner shall solely determine the eligibility of any 33 applicant applying for such tax credit. 34 § 3. The tax law is amended by adding a new section 50 to read as 35 follows: 36 § 50. Local newspaper and broadcast media business advertising tax 37 credit. (a) Allowance of credit. A taxpayer subject to tax under article 38 nine-A or twenty-two of this chapter shall be allowed a credit against 39 such tax, pursuant to the provisions referenced in subdivision (e) of 40 this section. The amount of the credit is equal to the amount determined 41 pursuant to article twenty-eight of the economic development law. A 42 taxpayer that is a partner in a partnership, member of a limited liabil- 43 ity company or shareholder in a subchapter S corporation shall be 44 allowed its pro rata share of the credit allowed for the partnership, 45 limited liability company or subchapter S corporation. No cost or 46 expense paid or incurred that is included as part of the calculation of 47 this credit shall be the basis of any other tax credit allowed under 48 this chapter. 49 (b) Eligibility. To be eligible to claim the local newspaper or broad- 50 cast media business advertising tax credit the taxpayer shall have been 51 issued a certificate of tax credit by the department of economic devel- 52 opment pursuant to article twenty-eight of the economic development law, 53 which certificate shall set forth the amount of the credit that may be 54 claimed for the taxable year. The taxpayer shall be allowed to claim 55 only the amount listed on the certificate of tax credit for that taxable 56 year.S. 1865 5 1 (c) Tax return requirement. The taxpayer shall be required to attach 2 to its tax return, in the form prescribed by the commissioner, proof of 3 receipt of its certificate of tax credit issued by the commissioner of 4 the department of economic development. 5 (d) Credit recapture. If a certificate of tax credit issued by the 6 department of economic development under article twenty-eight of the 7 economic development law is revoked by such department, the amount of 8 credit described in this section and claimed by the taxpayer prior to 9 that revocation shall be added back to tax in the taxable year in which 10 any such revocation becomes final. 11 (e) Cross references. For application of the credit provided in this 12 section see the following provisions of this chapter: 13 (1) article 9-A: section 210-B, subdivision 61. 14 (2) article 22: section 606, subsection (qqq). 15 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 16 sion 61 to read as follows: 17 61. Local newspaper and broadcast media business advertising tax cred- 18 it. (a) Allowance of credit. A taxpayer shall be allowed a credit, to be 19 computed as provided in section fifty of this chapter, against the taxes 20 imposed by this article. 21 (b) Application of credit. The credit allowed under this subdivision 22 for the taxable year shall not reduce the tax due for such year to less 23 than the amount prescribed in paragraph (d) of subdivision one of 24 section two hundred ten of this article. However, if the amount of cred- 25 it allowable under this subdivision for the taxable year reduces the tax 26 to such amount or if the taxpayer otherwise pays tax based on the fixed 27 dollar minimum amount, any amount of credit thus not deductible in such 28 taxable year shall be treated as an overpayment of tax to be credited or 29 refunded in accordance with the provisions of section one thousand 30 eighty-six of this chapter. Provided, however, the provisions of 31 subsection (c) of section one thousand eighty-eight of this chapter 32 notwithstanding, no interest will be paid thereon. 33 § 5. Section 606 of the tax law is amended by adding a new subsection 34 (qqq) to read as follows: 35 (qqq) Local newspaper and broadcast media business advertising tax 36 credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, 37 to be computed as provided in section fifty of this chapter, against the 38 tax imposed by this article. 39 (2) Application of credit. If the amount of the credit allowed under 40 this subsection for the taxable year exceeds the taxpayer's tax for such 41 year, the excess shall be treated as an overpayment of tax to be credit- 42 ed or refunded in accordance with the provisions of section six hundred 43 eighty-six of this article, provided, however, that no interest will be 44 paid thereon. 45 § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 46 of the tax law is amended by adding a new clause (lii) to read as 47 follows: 48 (lii) Local newspaper advertising Amount of credit under 49 under subsection (qqq) subdivision sixty-one of section 50 two hundred ten-B 51 § 7. This act shall take effect immediately and shall apply to tax 52 years beginning on or after January 1, 2026 and shall expire January 1, 53 2030 when upon such date the provisions of this act shall be deemed 54 repealed.
