(Denver, CO) -- A bill that would provide tax credits to small businesses advertising with newspapers took a step forward Monday in the House Finance committee. The bill received testimony from members of the media to include "emerging media" such as podcasters and news website creators and publishers. There were amendments added to the legislation and it passed out of committee. Here is the text of the bill. We will follow up when it is heard again, which should be second reading on the House Floor.
Supporting Local Media
Concerning supporting local media.
SESSION: 2022 Regular Session
SUBJECTS: Fiscal Policy & Taxes State Government
The bill requires all state departments to spend at least 50% of the money they spend on advertising to Colorado residents in a fiscal year on advertising through local newspapers. The bill further requires all departments to report on their advertising spending during their annual "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" presentations. The bill also creates an income tax credit for supporting local newspapers. For income tax years beginning on or after January 1, 2023, but before January 1, 2033:
A taxpayer is allowed a credit against their income taxes in an amount equal to 50%, not to exceed $250, of the total amount paid by the taxpayer for local newspaper subscriptions or memberships for the personal use of the taxpayer and of the contributions made by the taxpayer to nonprofit local newspapers; and
A small business is allowed a credit against their income taxes, not to exceed $2,500, in an amount equal to the amount paid by the eligible small business for local newspaper advertising.
If the amount of the credit allowed exceeds the amount of income taxes otherwise due in the income tax year for which the credit is being claimed, the bill permits the amount of the credit not used in the income tax year to be carried forward as a credit against subsequent years' income tax liability for a period not to exceed 10 years. Any amount of the credit that is not used after such period is not refunded to the taxpayer.