New York Proposes Tax Incentives for Local Radio Advertising

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A newly proposed bill in New York aims to further incentivize small businesses to invest in local radio advertising. The Lift Our Communities Advertise Locally, or LOCAL, Act would provide eligible businesses a tax credit equal to 80% of their spending on local radio ads, up to $5,000.

The legislation was introduced by Senator Monica Martinez in the State Senate with support from Assemblymember Jen Lunsford in the State House.

A total of $10 million in tax credits will be available annually, with $6 million earmarked for minority-, women-, and veteran-owned businesses and $4 million reserved for small businesses. The program’s tax credit, up to $4,000 annually per business, is non-transferable.

To qualify for the credit, businesses must engage with broadcast media outlets that focus on delivering local news and information to specific New York communities. Specifically, eligible radio stations must employ at least one full-time local news journalist living within 50 miles of their coverage area. Stations must also broadcast local news weekly and have done so consistently for the past year.

However, some details around the legislation remain unclear. As New York State Broadcasters Association President David Donovan noted to Radio Ink, advertising is already 100% deductible as a business expense in New York. Offering tax benefits exclusively to certain businesses that advertise on specific media outlets could also potentially raise constitutional concerns.

As local newsrooms increasingly face layoffs and programming cuts, this tax credit program comes at a time when organizations from the NAB to major marketers are fighting the perceived stigma around advertising tied to news.

If passed, the LOCAL Program will take effect starting in 2026, with tax credits available through 2030. Senator Martinez says the bill could serve as a model for other states looking to support local media, adding, “This legislation fosters a cycle of growth, allowing small businesses to expand their reach while investing in the media outlets that keep New Yorkers informed and engaged.”

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