Local Journalism Sustainability Tax Incentive Program

Are you a local news organization committed to providing essential news coverage for Illinois communities?

The Local Journalism Sustainability Tax Incentive Program offers financial support to help organizations like yours hire and retain qualified journalists. By providing valuable tax credits, the program seeks to fortify local journalism and ensure that Illinois communities receive the essential news coverage they rely on. 

Eligible local news organizations can receive:

• $15,000 in tax credits for each qualified journalist employed by the organization during the past 12 months.
• An additional $10,000 in tax credits for each qualified journalist who fills a new journalism position (net increase in qualified journalists from 1/1/24 to 1/1/25) during the same period.

The tax credit is paid for the full calendar year, but tax liability is determined quarterly. If the amount of the credit exceeds the liability for the reporting period, the excess credit will be refunded to the taxpayer.

Credits are awarded on a first-come, first-served basis.

Credit Limits Per Calendar Year:

• A single local news organization can be eligible for up to $150,000 in tax credits.
  • If the local news organization is not independently owned or involves a private fund, total credits for shared ownership entities cannot exceed $250,000.
• Statewide, total credits are capped at $5,000,000 annually, with $4,000,000 allocated for the $15,000 credit/journalist and $1,000,000 reserved for the additional $10,000 credit/journalist. 

Local News Organizations

Applicants seeking eligibility as a “Local News Organization” must meet all the following conditions:

1. Must engage professionals to create, edit, produce, and distribute original content concerning matters of public interest through reporting activities, including conducting interviews, observing current events, or analyzing documents or other information.
2. Must employ at least one full-time journalist (30+ hours per week) whose primary responsibilities involve providing coverage of Illinois or local Illinois community news. The role must include tasks such as gathering, preparing, collecting, photographing, writing, editing, reporting, or publishing original news specific to local or state communities for dissemination within those communities. The journalist must live within 50 miles of the coverage area.
3. In the case of a print publication, must have published at least one issue per month in the past 12 months and hold a USPS periodical permit or have 25% of content dedicated to local news.
4. In the case of a digital-only entity, must have published at least one community-related piece per week for the past 12 months, with at least 33% of its audience located in Illinois.
5. In the case of a hybrid entity that has both print and digital outlets, must meet either the print or digital requirements above.
6. Must have disclosed ownership details either in its print publication or on its website or, in the case of a not-for profit entity, its board of directors.
7. In the case of a 501(c)(3), has declared the coverage of local or State news as the stated mission in its filings with the IRS.
8. Must not have received more than $100,000 annually or 50% of gross receipts for the previous year from political, 501(c)(4), or 501(c)(6) entities, unless those payments are for political advertising during the lowest unit windows and using comparable rates.
9. Must not have received more than 30% of its revenue from the previous taxable year from political advertisements during lowest unit windows.
10. Your organization must deduct and withhold employment taxes under Sec. 704A of the Illinois Income Tax Act.

Qualified Journalists

A qualified journalist is someone who:

• Is employed for an average of at least 30 hours per week; and
• Is responsible for gathering, developing, preparing, directing the recording of, producing, collecting, photographing, recording, writing, editing, reporting, designing, presenting, distributing, or publishing original news or information that concerns local matters of public interest.

Please familiarize yourself with the program here before applying.

The Local Journalism Sustainability Tax Incentive Program digital application can be found here.

If your application is approved, you will receive a Local Journalism Tax Credit Certificate detailing your approved credit amount.

You will need to include your tax credit certificate with the tax filing for the quarter immediately following its receipt to claim the credit.

If your tax credit certificate is issued within the following timeframes, it must be included with the corresponding quarterly tax filing:

• Jan 1 – Mar 31:  CY Q2
• Apr 1 – Jun 30:  CY Q3
• Jul 1 – Sep 30:  CY Q4
• Oct 1 – Dec 31: CY Q1 of following year

For questions or assistance with your application, email CEO.JournalismTaxCredit@Illinois.gov.

Reference Documents:

Statute Governing the Local Journalism Sustainability Tax Incentive Program