EDITORIAL: Tax credit would boost small businesses, local economies, journalism

What if that bill provided support for businesses owned by minorities, women and veterans, among the many small businesses covered by it, and what if the money generated stayed right in the local community?

But we’re not done yet.

What if that same piece of legislation also would help your constituents become more informed about what’s going on in their communities by helping local news organizations keep reporters in the field so they can provide information about the activities of local governments and school districts, police and courts, community service organizations and church groups, local entertainment, the business community and more?

And what if this bill more than paid for itself in the revenue it brought back to the taxpayers through higher sales and property taxes and increased economic activity, making it more than worth the investment of state dollars?

If you’re a state legislator who wants all of those things for your constituents, then you’re going to want to support the Lift Our Communities, Advertise Locally (LOCAL) Act and include funding for it in this year’s state budget.

Under the bill, A3955/S1865, minority-, woman- or veteran-owned business, as well as any business with 10 employees or fewer, would be eligible to receive a refundable tax credit of 80% of its first $5,000 of local advertising, for a maximum credit of $4,000 per year.

Sixty percent of credits must be awarded to women-owned, minority- owned, and disabled-veteran owned businesses, according to the bill.

The three-year tax credit program would be capped at $10 million each year, a drop in the bucket of the state budget, especially given the potential benefits it could provide at the level that directly affects most New Yorkers — our local villages, towns, cities and counties.

The beauty of this bill is that its benefits go further than just the original investment in the tax credit.

The tax credit allows businesses that otherwise might not be able to afford it to reach their local customers through advertising in their local newspaper or broadcast media outlet.

The money pays for ads. The ads go beyond their dollar value in drawing customers to a particular business and, in turn, to the area in which the business operates.

More people would be exposed to not just one business, but many others. The ads also would support the local newspaper that’s publishing the ads, allowing it to continue to provide news coverage of the communities and to continue to support local advertising of local businesses.

If after three years, it’s not doing what it’s supposed to do, it expires, and the state is out $30 million.

But if it does prove to be the economic boost for small businesses and local communities that it promises to be, then lawmakers vote to keep it going or expand it so that others may take advantage of its benefits.

Yes, we know it helps our particular business, the news business. And yes, we believe that local newspapers provide value to our communities.

But we wouldn’t support this tax break if there weren’t other real benefits to the local communities we serve.

This bill, promoted by Empire State Local News Coalition, has the support of many chambers of commerce from around the state, as well as local media organizations.

The name of the bill, the LOCAL Act, speaks for itself. It’s a bill that will help strengthen local economies by supporting local small businesses and local news organizations.

We urge our state lawmakers to jump on board and ensure this legislation passes during this session.