Senator Monica R. Martinez and Assemblymember Jen Lunsford, with support from the Empire State Local News Coalition, introduced legislation to establish a first-of-its-kind tax credit for small businesses that advertise in local media outlets.
The Lift Our Communities, Advertise Locally (LOCAL) Act will maximize the reach of small businesses’ advertising dollars and boost their visibility in their local communities. The new program will prioritize supporting minority-, woman- and veteran-owned businesses, as well as any local business with 10 employees or fewer.
“Small businesses are centers of our communities, built upon relationships with neighbors,” said Senator Monica R. Martinez. “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.”
President & CEO of the Long Island Association, Matt Cohen, said “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, which are also small companies.”
Under the LOCAL Act, a 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. The program would be capped at $10 million annually.
“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,” said Assemblymember Jennifer Lunsford
By supporting the marketing needs of small businesses through advertising in local media outlets, the initiative will help small businesses promote their products and services, while keeping investment local in the media outlets that New Yorkers rely on every day for critical information.
“Local media is a uniquely trusted voice for the Black community, and the ability to affordably advertise in local media outlets provides an important opportunity for our member small businesses to connect with their neighbors and customers,” said Phil Andrews, President of the Long Island African American Chamber of Commerce.
The bill has gained strong support from nine major business trade groups – including the Long Island Association, the Long Island African American Chamber of Commerce, Upstate United and the National Federation of Independent Business – as well as the Empire State Local News Coalition's more than 200 local New York newspapers, which view the legislation as a winning solution to both increase investment in local small businesses and bolster the sustainability of local news organizations.