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Bill No.: Summary Actions Committee&nbspVotes Floor&nbspVotes Memo Text LFIN Chamber&nbspVideo/Transcript S01865 Summary: BILL NO S01865A &nbsp SAME AS SAME AS A03955-A

&nbsp SPONSOR MARTINEZ &nbsp COSPNSR ADDABBO, ASHBY, CANZONERI-FITZPATRICK, COONEY, HOYLMAN-SIGAL, MURRAY, RHOADS, RYAN C &nbsp MLTSPNSR &nbsp Add Art 29 §§510 - 514, Ec Dev L; add §50, amd §§210-B & 606, Tax L &nbsp 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.

Go to top S01865 Text:

STATE OF NEW YORK ________________________________________________________________________

1865--A

2025-2026 Regular Sessions

IN SENATE

January 14, 2025 ___________

Introduced by Sens. MARTINEZ, ASHBY, CANZONERI-FITZPATRICK, COONEY, HOYLMAN-SIGAL, MURRAY, RHOADS, C. RYAN -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

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 29 to read as follows: 5 ARTICLE 29 6 LIFT OUR COMMUNITIES ADVERTISE LOCALLY PROGRAM 7 Section 510. Short title. 8 511. Definitions. 9 512. Application and approval process. 10 513. Local newspaper and broadcast media business advertising 11 tax credit. 12 514. Powers and duties of the commissioner. 13 § 510. Short title. This article shall be known and may be cited as 14 the "lift our communities advertise locally (LOCAL) program". 15 § 511. 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

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02719-02-5

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1 the tax credit under this article that an eligible business may claim, 2 pursuant to section five hundred thirteen and section five hundred four- 3 teen of this article. 4 2. "Eligible business" shall mean a minority-owned business enterprise 5 as defined in section three hundred ten of the executive law, a women- 6 owned business enterprise as defined in section three hundred ten of the 7 executive law, a certified service-disabled veteran-owned business 8 enterprise as defined in section forty of the veterans' services law, or 9 a small business as defined in this section. 10 3. "Excluded organization" shall mean: 11 (a) an organization described in subsection four, five or six of 12 section 501(c) of the United States internal revenue code; 13 (b) a political organization as defined in section 527(e) of the 14 United States internal revenue code; 15 (c) any organizations that received more than one hundred thousand 16 dollars, in the aggregate, from organizations described in paragraph (a) 17 or (b) of this subdivision; 18 (d) a publicly-traded company that reported at least one billion 19 dollars in revenue, in the aggregate, during the immediately preceding 20 four quarters; or 21 (e) an organization that is a subsidiary of, or at least five percent 22 owned by, organizations described in paragraph (d) of this subdivision. 23 4. "Local news journalist" shall mean any resident of the state of New 24 York who regularly gathers, prepares, produces, collects, edits, photo- 25 graphs, records, directs the recording of, writes, presents, broadcasts, 26 prints, publishes or reports news or information that concerns local or 27 current events of a New York state county, town, village, city, or 28 hamlet, or any combination thereof. 29 5. "Local newspaper" shall mean a print or digital publication that: 30 (a) publishes news content that is primarily focused on local or 31 current events of a New York state county, town, village, city, or 32 hamlet, or any combination thereof, otherwise known as such local news- 33 paper's primary coverage area; 34 (b) employs at least one full-time local news journalist that resides 35 in, or within fifty miles of, the publication's primary coverage area; 36 (c) publishes and distributes local news content not less frequently 37 than once per week, and has done so continuously for the preceding 38 twelve-month period; 39 (d) carries valid libel or medial liability insurance; and 40 (e) for a local newspaper that distributes in only a digital format, 41 (i) earned revenue of at least one hundred thousand dollars in the 42 preceding taxable year and (ii) derives at least thirty-three percent of 43 its audience, averaged over the preceding twelve-month period, from its 44 primary coverage area. 45 5-a. For the purposes of this section, a print or digital publication 46 shall not be considered a local newspaper or broadcast media business if 47 such publication is: 48 (a) distributed or made available primarily for advertising or enter- 49 tainment purposes; or 50 (b) majority owned by, or derives at least fifty percent of its reven- 51 ue from, excluded organizations. 52 6. "Broadcast media business" shall mean any broadcast station which: 53 (a) owns or operates a broadcast station, as defined by section three 54 of the federal communications act of 1934; 55 (b) discloses its ownership to the public at such times and in such 56 manner as identified by the commissioner;

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1 (c) broadcasts news content that is primarily focused on local or 2 current events of a New York state county, town, village, city, or 3 hamlet, or any combination thereof, otherwise known as such broadcast 4 media business' primary coverage area; 5 (d) employs at least one full-time local news journalist that resides 6 in, or within fifty miles of, the broadcast media business' primary 7 coverage area; 8 (e) broadcasts local news content not less frequently than once per 9 week, and has done so continuously for the preceding twelve-month peri- 10 od; 11 (f) carries valid libel or media liability insurance; and 12 (g) for a broadcast media business that distributes in only a digital 13 format: (i) earned revenue of at least one hundred thousand dollars in 14 the preceding taxable year; and (ii) derives at least thirty-three 15 percent of its audience, averaged over the preceding twelve-month peri- 16 od, from its primary coverage area. 17 6-a. For the purposes of this section, a broadcast station shall not 18 be considered a broadcast media business if such broadcast station is: 19 (a) broadcast primarily for advertising or entertainment purposes; or 20 (b) majority owned by, or derives at least fifty percent of its revenue 21 from, excluded organizations. 22 7. "Advertising" shall mean providing consideration for the publica- 23 tion, broadcast, dissemination, solicitation, or circulation of visual, 24 aural, spoken, or written communication to directly or indirectly: (a) 25 induce any person or organization to purchase a good, program, product, 26 or service, or to contribute financially to a cause; or (b) raise aware- 27 ness of a brand, good, program, product, service, or issue. 28 8."Qualified local media advertising expenses" means amounts paid or 29 incurred in the ordinary course of a trade or business for advertising 30 using a product, service, or other offering that is fully owned and 31 operated by a local newspaper or broadcast media business. For the 32 purposes of this section, advertising distributed in a programmatic 33 fashion in a digital format shall not be considered qualified local 34 media advertising expenses. 35 9. "Small business" shall mean ten employees or fewer and shall be 36 deemed to be one which is resident in this state, independently owned 37 and operated and not dominant in its field. 38 § 512. Application and approval process. 1. An eligible business shall 39 submit a complete application as prescribed by the commissioner. 40 2. The commissioner shall establish procedures and a timeframe for 41 eligible businesses to submit applications. As part of the application, 42 each eligible business shall: 43 (a) provide evidence in a form and manner prescribed by the commis- 44 sioner of their status as an eligible business; 45 (b) agree to allow the department of taxation and finance to share the 46 eligible business's tax information with the department; 47 (c) agree to allow the department of labor to share its tax and 48 employer information with the department provided, however, any informa- 49 tion shared as a result of this program shall not be available for 50 disclosure or inspection under the state freedom of information law; 51 (d) allow the department and its agents access to any and all books 52 and records the department may require to monitor compliance; and 53 (e) agree to provide any additional information required by the 54 department relevant to this article. 55 3. After reviewing an eligible business's completed final application 56 and determining that such eligible business meets the eligibility crite-

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1 ria as set forth in this article, the department may issue to such 2 eligible business a certificate of tax credit. An eligible business may 3 claim such tax credit. 4 § 513. Local newspaper and broadcast media business advertising tax 5 credit. 1. An eligible business that meets the eligibility requirements 6 of this article, and meets any additional eligibility criteria as 7 prescribed by regulations established pursuant to this section, may be 8 eligible to claim a credit equaling eighty percent of such eligible 9 business's expenditures towards qualified local media advertising 10 expenses. Such expenditures towards qualified local media advertising 11 expenses used to calculate such credit shall not exceed five thousand 12 dollars. 13 2. The total amount of tax credits listed on certificates of tax cred- 14 it issued by the commissioner pursuant to this article shall not exceed 15 ten million dollars for each year the credit is available per eligible 16 business for the taxable year. Within this amount, six million dollars 17 shall be set aside for minority-owned business enterprises as defined in 18 section three hundred ten of the executive law, women-owned business 19 enterprises as defined in section three hundred ten of the executive law 20 and certified service-disabled veteran-owned business enterprise as 21 defined in section forty of the veterans' services law and four million 22 dollars shall be set aside for small businesses as defined in section 23 five hundred eleven of this article. Allocations may be utilized across 24 the above referenced businesses should either one be under-allocated. 25 3. The credit shall be allowed as provided in section fifty of the tax 26 law. 27 § 514. Powers and duties of the commissioner. 1. The commissioner 28 shall promulgate regulations establishing an application process and 29 eligibility criteria, that will be applied consistent with the purposes 30 of this article, so as not to exceed the annual cap on tax credits set 31 forth in this section which, notwithstanding any provisions to the 32 contrary in the state administrative procedure act, may be adopted on an 33 emergency basis. 34 2. The commissioner shall, in consultation with the department of 35 taxation and finance, develop a certificate of tax credit that shall be 36 issued by the commissioner to eligible businesses. Such certificate 37 shall contain such information as required by the department of taxation 38 and finance. 39 3. The commissioner shall solely determine the eligibility of any 40 applicant applying for such tax credit. 41 § 3. The tax law is amended by adding a new section 50 to read as 42 follows: 43 § 50. Local newspaper and broadcast media business advertising tax 44 credit. (a) Allowance of credit. A taxpayer subject to tax under article 45 nine-A or twenty-two of this chapter shall be allowed a credit against 46 such tax, pursuant to the provisions referenced in subdivision (e) of 47 this section. The amount of the credit is equal to the amount determined 48 pursuant to article twenty-eight of the economic development law. A 49 taxpayer that is a partner in a partnership, member of a limited liabil- 50 ity company or shareholder in a subchapter S corporation shall be 51 allowed its pro rata share of the credit allowed for the partnership, 52 limited liability company or subchapter S corporation. No cost or 53 expense paid or incurred that is included as part of the calculation of 54 this credit shall be the basis of any other tax credit allowed under 55 this chapter.

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1 (b) Eligibility. To be eligible to claim the local newspaper or broad- 2 cast media business advertising tax credit the taxpayer shall have been 3 issued a certificate of tax credit by the department of economic devel- 4 opment pursuant to article twenty-eight of the economic development law, 5 which certificate shall set forth the amount of the credit that may be 6 claimed for the taxable year. The taxpayer shall be allowed to claim 7 only the amount listed on the certificate of tax credit for that taxable 8 year. 9 (c) Tax return requirement. The taxpayer shall be required to attach 10 to its tax return, in the form prescribed by the commissioner, proof of 11 receipt of its certificate of tax credit issued by the commissioner of 12 the department of economic development. 13 (d) Credit recapture. If a certificate of tax credit issued by the 14 department of economic development under article twenty-eight of the 15 economic development law is revoked by such department, the amount of 16 credit described in this section and claimed by the taxpayer prior to 17 that revocation shall be added back to tax in the taxable year in which 18 any such revocation becomes final. 19 (e) Cross references. For application of the credit provided in this 20 section see the following provisions of this chapter: 21 (1) article 9-A: section 210-B, subdivision 63. 22 (2) article 22: section 606, subsection (uuu). 23 § 4. Section 210-B of the tax law is amended by adding a new subdivi- 24 sion 63 to read as follows: 25 63. Local newspaper and broadcast media business advertising tax cred- 26 it. (a) Allowance of credit. A taxpayer shall be allowed a credit, to be 27 computed as provided in section fifty of this chapter, against the taxes 28 imposed by this article. 29 (b) Application of credit. The credit allowed under this subdivision 30 for the taxable year shall not reduce the tax due for such year to less 31 than the amount prescribed in paragraph (d) of subdivision one of 32 section two hundred ten of this article. However, if the amount of cred- 33 it allowable under this subdivision for the taxable year reduces the tax 34 to such amount or if the taxpayer otherwise pays tax based on the fixed 35 dollar minimum amount, any amount of credit thus not deductible in such 36 taxable year shall be treated as an overpayment of tax to be credited or 37 refunded in accordance with the provisions of section one thousand 38 eighty-six of this chapter. Provided, however, the provisions of 39 subsection (c) of section one thousand eighty-eight of this chapter 40 notwithstanding, no interest will be paid thereon. 41 § 5. Section 606 of the tax law is amended by adding a new subsection 42 (uuu) to read as follows: 43 (uuu) Local newspaper and broadcast media business advertising tax 44 credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, 45 to be computed as provided in section fifty of this chapter, against the 46 tax imposed by this article. 47 (2) Application of credit. If the amount of the credit allowed under 48 this subsection for the taxable year exceeds the taxpayer's tax for such 49 year, the excess shall be treated as an overpayment of tax to be credit- 50 ed or refunded in accordance with the provisions of section six hundred 51 eighty-six of this article, provided, however, that no interest will be 52 paid thereon. 53 § 6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 54 of the tax law is amended by adding a new clause (Liii) to read as 55 follows:

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1 (Liii) Local newspaper advertising Amount of credit under 2 under subsection (uuu) subdivision sixty-three of section 3 two hundred ten-B 4 § 7. This act shall take effect immediately and shall apply to tax 5 years beginning on or after January 1, 2026 and shall expire January 1, 6 2030 when upon such date the provisions of this act shall be deemed 7 repealed.

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