New tax credits offer ‘lifeline’ to California media

Governor Newsom signed a bill to provide refundable employment tax credits to qualifying media outlets.SACRAMENTO, Calif. (CN) — California Governor Gavin Newsom on Wednesday signed a closely watched bill that will help media organizations in the state keep their existing employees and hire more journalists.Assembly Bill 2222 — written by Assemblymember Chris Ward, a San Diego Democrat — will provide refundable employment tax credits to qualifying media outlets. Starting next year, and lasting for five years, media organizations can receive $20,000 each for five full-time journalists. An additional $15,000 is available for each journalist over the first five, along with $15,000 for each new full-time journalism job.“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.”Traditional media like newspapers and television have taken significant hits over the past few decades. A report last year from Northwestern University found about 40% of U.S. newspapers have disappeared over the past two decades.Just this month, McClatchy Media, headquartered in Sacramento, laid off over 90 employees across 17 publications in various states.“Meanwhile, the journalism industry faces new and intensified challenges including: shrinking circulation and steep losses of revenue from changes to search and the adoption of AI technologies, while political attacks against public broadcasters threaten to leave large swaths of rural America without local news,” the report’s authors wrote.Newsom — who must sign or veto bills by Wednesday at midnight — in a statement pointed to President Donald Trump’s recent move to oust CNN, MS NOW and Politico reporters from the White House. Trump said the ouster stemmed from unfavorable coverage and “fake news.” A federal judge has ordered the journalists’ temporary return as they fight the ban.“While President Trump continues to attack the free press, California is supporting independent journalism,” Newsom said, adding: “A free press isn’t supposed to make government comfortable. It’s supposed to make government accountable.”Supporters of the legislation ranging from lawmakers to movie stars praised the passage of Ward’s bill.A coauthor of the bill, Assemblymember Buffy Wicks — an Oakland Democrat — said the new law puts money on the line to keep journalists working in California.Sean Astin, president of SAG-AFTRA, in a statement called the bill signing a major win for quality journalism.The Screen Actors Guild–American Federation of Television and Radio Artists represents some 160,000 people, including broadcast journalists, news editors and other media employees.Newsom’s office said the new law will support full- and part-time journalism jobs at qualifying newsrooms and encourage news organizations to hire more reporters. It prohibits groups controlled by political or social welfare organizations from participating.The California News Publishers Association, of which Courthouse News Service is a member, supported the bill. It argued tax credits would help all sizes of media organizations, regardless of their coverage area or what form they take — digital, print or broadcast.“These tax credits will help news organizations hire and retain journalists who keep our communities informed,” the association posted on X.Earlier this week, Newsom signed another media-related bill. Assembly Bill 1544 — written by Assemblymember Maggy Krell, a Sacramento Democrat — prohibits a judge or law enforcement officer from banning any member of the press or public from watching court proceedings that are open to the public.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads