Credit for local newspaper subscriptions

(a) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section: 25F. Local newspaper subscriptions (a) In general In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of amounts paid or incurred for subscriptions to one or more local newspapers for the personal use of the taxpayer. (b) Annual dollar limitation The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed $250. (c) Applicable percentage For purposes of this section, the term applicable percentage means— (1) in the case of the first taxable year to which this section applies, 80 percent, and (2) in the case of any subsequent taxable year, 50 percent. (d) Local newspaper For purposes of this section— (1) In general The term local newspaper means any print or digital publication if— (A) the primary content of such publication is original content derived from primary sources and relating to news and current events, (B) such publication primarily serves the needs of a regional or local community, (C) the publisher of such publication employs at least one local news journalist who resides in such regional or local community, and (D) the publisher of such publication employs not greater than 750 employees. (2) Local news journalist For purposes of paragraph (1)(C), the term local news journalist means any individual who regularly gathers, collects, photographs, records, writes, or reports news or information that concerns local events or other matters of local public interest. (3) Aggregation rule (A) In general For purposes of subparagraphs (C) and (D) of paragraph (1), all persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as one person. (B) Exception Subparagraph (A) shall not apply unless such persons are involved in the production of the same print or digital publication. (4) Continuous qualification The requirements of subparagraphs (A) and (B) of paragraph (1) shall not be treated as met unless such requirements are met at all times during the period beginning on the date which is 2 years before the date of the enactment of this section and ending on the date that the subscription described in subsection (a) is paid or incurred. (5) Application to certain organizations exempt from tax In the case of any print or digital publication which is published by any organization described in section 501(c) and exempt from tax under section 501(a)— (A) such publication shall be treated as a local newspaper only if the publication of print and digital publications is the primary activity of such organization, and (B) any person making a charitable contribution (as defined in section 170(c)) to such organization may elect to treat such contribution as an amount paid or incurred for a subscription to which this section applies in lieu of treating such contribution as a charitable contribution for purposes of section 170. (e) Termination No credit shall be allowed under this section for any amount paid or incurred in a taxable year ending after the close of 5-year period beginning on the date of the enactment of this section.. (b) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25E the following new item: Sec. 25F. Local newpaper subscriptions.. (c) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.