Steve Glazer

California lawmakers approved Assembly Bill 2222, which would create refundable tax credits for local news organizations based on the number of journalists they employ, sending it to Governor Gavin Newsom for a decision by September 30. Introduced by Assemblymember Christopher M. Ward, the bill offers a "job retention credit" of $20,000 per journalist for up to five positions and $15,000 for each additional one, plus a $15,000 bonus per new hire, with part-time roles receiving half-credits. The state tax board estimates it would provide more than $40 million annually to newsrooms, making it the largest such relief effort in the U.S. to date.

The bill would be funded by aligning California's tax code with a federal provision eliminating deductions for executive salaries over $1 million. It passed despite opposition from the California Taxpayers Association and California Chamber of Commerce, which object to raising taxes on employers, and Newsom's own finance office, which flagged the lack of a cap on credits. It is backed by the California News Publishers Association and Rebuild Local News amid a broader decline in local journalism jobs and advertising revenue.