California lawmakers approve tax credit bill for local newsrooms

California lawmakers have passed Assembly Bill 2222, a measure designed to provide financial relief to the state’s struggling local news organizations. The bill, which has now reached Governor Gavin Newsom’s desk, proposes refundable tax credits based on the number of journalists an organization employs.

Introduced by Assemblymember Christopher M. Ward, the legislation includes a “job retention credit” of $20,000 per journalist for up to five positions, and $15,000 for each additional journalist. To encourage growth, the bill also offers an additional $15,000 credit for every new hire. Proponents describe the measure as a “safety net for news outlets on the verge of closure.”

If signed into law, the program is estimated to provide more than $40 million annually to California newsrooms, making it the largest relief plan of its kind in the United States. However, the bill faces potential challenges as Governor Newsom has historically been hesitant to sign legislation that alters the state budget after fiscal discussions have concluded.