Sec. 138517. Payroll credit for compensation of local news journalists
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/bill/117/hr/5376/rh/section-138517·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In the case of an eligible local newspaper publisher, there shall be allowed as a credit against applicable employment taxes for each calendar quarter an amount equal to the applicable percentage of wages paid by such publisher to local news journalists for such calendar quarter. The amount of wages paid with respect to any individual which may be taken into account under subsection
(a)during any calendar quarter by the eligible local newspaper publisher shall not exceed $12,500. The credit allowed by subsection
(a)with respect to any calendar quarter shall not exceed the applicable employment taxes (reduced by any credits allowed under sections 3131, 3132, 3134, and 6432 of the Internal Revenue Code of 1986) on the wages paid with respect to the employment of all the employees of the eligible local newspaper publisher for such calendar quarter. If the amount of the credit under subsection
(a)exceeds the limitation of paragraph
(2)for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b) of the Internal Revenue Code of 1986. For purposes of section 1324 of title 31, United States Code, any amounts due to the employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. For purposes of this section— The term applicable percentage means— in the case of each of the first 4 calendar quarters to which this section applies, 50 percent, and in the case of each calendar quarter thereafter, 30 percent. The term applicable employment taxes means the taxes imposed under section 3111(b) of the Internal Revenue Code of 1986. The term eligible local newspaper publisher means, with respect to any calendar quarter, any employer if substantially all of the gross receipts of such employer for such calendar quarter are derived in the trade or business of publishing a local newspaper. The term local newspaper means any print or digital publication if— the primary content of such publication is original content derived from primary sources and relating to news and current events, such publication primarily serves the needs of a regional or local community, the publisher of such publication employs at least one local news journalist who resides in such regional or local community, and the publisher of such publication employs no more than 750 employees during the calendar quarter with respect to which a credit is allowed under this section. The term local news journalist means, with respect to any eligible local newspaper publisher for any calendar quarter, an individual who provides at least 100 hours of service during such calendar quarter to such eligible local newspaper publisher, during which time such individual regularly gathers, collects, photographs, records, writes, or reports news or information that concerns local events or other matters of local public interest. The term Secretary means the Secretary of the Treasury or the Secretary’s delegate. The term wages means wages (as defined in section 3121(a) of the Internal Revenue Code of 1986). Any term used in this section which is also used in chapter 21 or chapter 22 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such chapter. All persons treated as a single employer under subsection
(a)or
(b)of section 52 of the Internal Revenue Code of 1986, or subsection
(m)or
(o)of section 414 of such Code, shall be treated as one employer for purposes of this section. Paragraph
(1)shall not apply unless such persons are involved in the production of the same print or digital publication. For purposes of this section, rules similar to the rules of sections 51(i)(1) and 280C(a) of the Internal Revenue Code of 1986 shall apply. This credit shall not apply to the Government of the United States, the government of any State or political subdivision thereof, or any agency or instrumentality of any of the foregoing. This section shall not apply with respect to any eligible local newspaper publisher for any calendar quarter if such person elects (at such time and in such manner as the Secretary may prescribe) not to have this section apply. An employee shall not be included for purposes of this section for any period with respect to any employer if such employer is allowed a credit under section 51 of the Internal Revenue Code of 1986 with respect to such employee for such period. Any wages taken into account in determining the credit allowed under this section shall not be taken into account for purposes of determining the credits allowed under section 41, 45A, 45P, 45S, 51, 1396, 3131, 3132, 3134, and 6432 of such Code. Any credit allowed under this section shall be treated as a credit described in section 3511(d)(2) of such Code. The Secretary shall waive any penalty under section 6656 of the Internal Revenue Code of 1986 for any failure to make a deposit of any applicable employment taxes if the Secretary determines that such failure was due to the reasonable anticipation of the credit allowed under this section. The Secretary shall issue such forms, instructions, regulations, and guidance as are necessary to implement the purposes of this section, including with respect to the application of the credit under subsection
(a)to third-party payors (including professional employer organizations, certified professional employer organizations, or agents under section 3504 of the Internal Revenue Code of 1986), including regulations or guidance allowing such payors to submit documentation necessary to substantiate the eligible employer status of employers that use such payors. This section shall only apply to calendar quarters during the first 5 calendar years beginning after the date of the enactment of this Act.