IL SB3953

Creates the Local Journalism Sustainability Act establishing a withholding tax credit for local news organizations employing qualified journalists, equal to 50% of wages paid to qualified journalists with a maximum of $25,000 per journalist, plus an additional $5,000 credit per new journalism position.

Limits total credits to $250,000 per independently owned local news organization annually and $500,000 for non-independently owned news organizations with shared ownership, with a statewide cap of $8,000,000 annually ($6,500,000 for wage credits and $1,500,000 for new position credits).

Defines "local news organization" as independently owned entities that employ at least one full-time journalist covering local Illinois news, meet publication frequency requirements (monthly for print, weekly for digital), and disclose beneficial ownership or board composition.

Creates an income tax credit for eligible small businesses (fewer than 50 employees) equal to advertising expenses paid to local newspapers or local broadcast stations in Illinois, capped at $2,500 per taxpayer annually, with a statewide limit of $1,500,000 per year.

Requires applicants to apply annually with the Department of Commerce and Economic Opportunity, which issues certificates on a first-come, first-served basis; credits are available for reporting periods beginning January 1, 2025 through December 31, 2029; effective immediately.