CO HB1121

State departments must spend at least 50% of their advertising budget for Colorado residents on local newspaper advertising, beginning July 1, 2023, with advertising primarily targeted at out-of-state residents exempted from this requirement.

State departments must report their advertising spending and the percentage allocated to local newspapers as part of annual SMART Government Act presentations to their legislative oversight committees.

Individual taxpayers receive an income tax credit equal to 50% (not to exceed $250) of local newspaper subscriptions, memberships, and contributions to nonprofit local newspapers for tax years 2023-2032.

Small businesses with fewer than 50 employees receive an income tax credit up to $2,500 for local newspaper advertising expenses in Colorado for tax years 2023-2032.

Unused tax credits may be carried forward for up to 10 years but are not refundable; the tax credit provisions are repealed effective December 31, 2042.