Local News Printer Tax Credit
SB111 creates two new refundable tax credits: a personal income tax credit and a corporate income and franchise tax credit for owners of a “local news printer” that employs qualified employees. The credit equals the wages paid to each qualified employee, capped at $10,000 per employee for those working 20 or more hours per week and $5,000 for those working fewer than 20 hours per week. The credits are available for taxable years beginning on or after January 1, 2025, and before January 1, 2030.
To qualify, the business must be a local news printer that provides printing services for a local news organization using a web press, has been in the newspaper printing business for at least five years, employs at least five qualified employees, and is not publicly traded or majority-owned by a publicly traded entity. The bill also defines what counts as a local news organization and a qualified employee, including requirements tied to New Mexico-based operations, local/state news coverage, ownership disclosure, and limits on political and certain nonprofit funding. The Department of Taxation and Revenue would certify eligibility, issue credit certificates, and administer the credits, which are subject to a combined annual statewide cap of $1 million.
SB111 would amend both the Income Tax Act and the Corporate Income and Franchise Tax Act by adding new refundable credits for owners of qualifying local news printing businesses. It would create new statutory definitions for “local news organization,” “local news printer,” “qualified employee,” and “wages,” and would require the Taxation and Revenue Department to certify and track claims. The bill also adds the credits to the tax expenditure budget and limits the total amount of credits that may be certified each year, affecting both individual and business taxpayers who own qualifying printing operations as well as the state’s revenue base.
Based on the bill’s framing and the absence of recorded committee debate or votes in the provided materials, the measure appears to be a targeted policy effort to support local journalism infrastructure, especially newspaper printing operations in New Mexico. The bill’s structure suggests a generally pro-support sentiment toward local news businesses, with the legislature using tax policy to encourage retention of printing jobs and production capacity. No recorded opposition or amendment history is provided here, so the overall sentiment in the available record is neutral to favorable.
The main likely points of contention are the bill’s narrow eligibility criteria and the use of tax credits to subsidize a specific industry. The definitions exclude publicly traded entities, require a long operating history, and impose audience, content, ownership-disclosure, and funding-source tests, which could be seen as limiting access to only a small set of businesses. Another potential issue is fiscal cost: the credits are refundable and capped at a combined $1 million annually, so critics may question whether the public subsidy is justified, while supporters may argue it is necessary to preserve local news production and related jobs.