NY lawmakers propose Tax credit for small business ads in local media

New York lawmakers Senator Monica R. Martinez and Assemblymember Jen Lunsford have introduced the Lift Our Communities, Advertise Locally (LOCAL) Act, a groundbreaking piece of legislation aimed at supporting small businesses by offering a tax credit for advertising in local media.

The proposal, which has garnered strong backing from the Empire State Local News Coalition and various business leaders, is designed to amplify the visibility of small businesses while strengthening local journalism.

The LOCAL Act focuses on helping minority-, woman-, and veteran-owned businesses, as well as those with fewer than 10 employees, by providing a refundable tax credit of up to $4,000 annually. The credit covers 80% of the first $5,000 spent on local advertising, with a program cap of $10 million annually.

Senator Martinez emphasized the role of small businesses in fostering community connections: “Small businesses are centers of our communities, built upon relationships with neighbors. The LOCAL Act will strengthen those ties by making it easier to connect to local customers through the trusted media deeply rooted in the places they serve.”

Assemblymember Lunsford echoed the sentiment, adding, “The LOCAL Act is about more than just advertising – it’s about investing in the economic health of our local community and investing in the kind of local journalism that we need now more than ever.” She believes the legislation will create a stronger foundation for both local businesses and journalism, enhancing the sustainability of both sectors.

The bill has quickly earned the endorsement of key trade groups, including the Long Island Association and the National Federation of Independent Business, alongside support from over 200 local newspapers. “The LOCAL Act is a win-win-win for local businesses, local news, and local communities,” said Zachary Richner, founding member of the Empire State Local News Coalition.

Business advocates agree that small businesses, struggling with rising costs and changing consumer habits, need additional resources to compete. “Providing opportunities for tax relief makes it a little more affordable for small businesses to operate and helps Main Street businesses compete in a difficult economic environment,” said Ashley E. Ranslow, New York State Director for the National Federation of Independent Business.

The initiative also seeks to address the struggles of upstate communities, where small businesses often lack affordable marketing options. “By supporting local advertising, we’re investing in the future of upstate communities and driving meaningful economic progress,” said Justin Wilcox, Executive Director of Upstate United.

The LOCAL Act promises a dual benefit for small businesses and local media outlets. “By making community advertising for small businesses more accessible and affordable, this proposed act will help them with their marketing strategy and customer engagement while simultaneously supporting local media outlets,” said Matt Cohen, President and CEO of the Long Island Association.

The legislation is seen as a vital step in supporting small businesses, which are essential to the economic fabric of New York State. Many local chambers of commerce, including those in St. Lawrence and Chautauqua counties, expressed their enthusiasm, noting that it would make marketing more affordable and provide much-needed support to local media. “The LOCAL Act is a common-sense approach to keeping dollars circulating within the community and we urge its passage,” said Ben Dixon, Executive Director of the St. Lawrence County Chamber of Commerce.

The LOCAL Act is being touted as a solution to the challenges faced by both small businesses and local media, helping both to thrive in an increasingly difficult economic landscape. As the legislation advances, its backers hope it will serve as a model for other states looking to support local economies and media outlets.