Connecticut House Bill HB05569

Connecticut 2026 Regular Session

• Introduced: 3/20/26
• Refer: 3/20/26

Caption

An Act Concerning A Small Business Tax Credit For Qualified Local Media Advertising Expenses.

Summary

HB 5569 creates a temporary Connecticut income tax credit for small businesses that spend money advertising with local media outlets. The bill defines “qualified local media advertising expenses” to include advertising in local newspapers and on local broadcast radio or television stations serving a local community, and limits the credit to businesses with 50 or fewer employees located in the state. The credit would apply to tax years beginning on or after January 1, 2027 and before January 1, 2032. For the first year, the credit equals 80% of qualified advertising expenses up to $5,000; for the following four years, it equals 50% of those expenses up to $2,500 per year. The bill also allows pass-through entities and single-member LLC owners to claim the credit in appropriate circumstances, and it prevents taxpayers from both deducting and claiming a credit for the same advertising costs.

Impact

The bill would add a new section to Connecticut tax law creating a five-year business tax credit under chapters 208 and 229 of the General Statutes, affecting corporate income taxpayers, pass-through owners, and certain LLC owners. It would not change the tax base generally, but would reduce tax liability for eligible small businesses that advertise in qualifying local media, while also establishing eligibility rules for what counts as a local newspaper and qualified local media outlet.

Sentiment

No committee transcript or vote history was provided, so there is no recorded debate or roll-call sentiment to assess. Based on the bill’s structure, it appears designed as a pro-small-business and pro-local-news measure, suggesting generally supportive policy intent toward both local advertising markets and community journalism.

Contention

The main policy questions likely concern the scope and cost of the credit, including whether the employee cap, dollar caps, and five-year duration are appropriately targeted. Another possible point of contention is the bill’s definition of eligible local media, which excludes certain politically affiliated or membership organizations and requires a local journalist and original local content, potentially narrowing which outlets qualify. Stakeholders most likely to focus on these issues would be small businesses, local newspapers, broadcasters, and tax policy advocates.