California signs journalist tax credit law for 2027

California Gov. Gavin Newsom signed AB 2222, the Community NEWS Act, on Wednesday, establishing refundable employment tax credits for qualifying local news organizations that retain or hire journalists. The law is scheduled to take effect in 2027, when eligible organizations can seek credits based on newsroom staffing and qualifying new positions. The credits are tied to the number of journalists an organization employs, with additional support for new hires. Reports describe differing amounts across staffing categories and positions, including credits of up to $20,000 for each of an organization’s first five journalists and $15,000 for journalists beyond that threshold. An additional credit is available for new journalism jobs. The law also allows support for qualifying part-time positions, though reported details vary. Eligibility and implementation will determine which outlets can claim the credits and how much they receive. The California Department of Finance opposed the bill, saying the credits have no cap and could create unlimited fiscal liability for the state.