Gov. Gavin Newsom signed a bill co-authored by a San Diego lawmaker Wednesday that will create refundable employment tax credits for local newsrooms, with an aim of helping California news organizations retain their staff members and hire new journalists.
Starting in 2027, Assembly Bill 2222, authored by Assemblymember Chris Ward, D-San Diego, and Assemblymember Buffy Wicks, D-Oakland, will provide qualifying digital, broadcast and print news organizations with credits based on the number of journalists they employ or hire.
The bill, also known as the Community NEWS Act, provides credits of $20,000 per full-time journalist for the first five journalists, $15,000 for each additional full-time journalist, and an additional $15,000 for each new full-time journalism position. Qualified part-time journalists would net credits of $7,500 each.
The tax credit will be in effect for taxable years between 2027 and 2031.
Qualification benchmarks include having at least 33% of a newsroom's audience in California, carrying liability insurance, publicly publishing a policy regarding error corrections, and not being controlled by a Political Action Committee.
"Local journalism is the backbone of an informed democracy, and today California made clear that the people doing this essential work are worth investing in," Ward said in a statement. "At a time when newsrooms are shrinking, misinformation is spreading, and independent journalism is under attack, the Community NEWS Act provides a lifeline to outlets large and small. This historic investment will help keep reporters in our communities, strengthen nonprofit and public media, and ensure Californians continue to have access to trusted, fact-based local news."
In his signing message, Newsom wrote that the legislation would "help address the 20-year decline in local news coverage in California," which he wrote had been upended by newspaper consolidation and advertising firms' shifts from newspapers to tech platforms.
