California has enacted a state law giving news organizations tax credits based on the number of journalists they employ. According to Nieman Lab, the bill passed at the end of August and is the largest local news bill in the United States.
The measure is expected to generate as much as $40 million per year for newsrooms across the state. Because the credit scales with headcount, it is designed to reward outlets that keep working journalists on staff rather than those that cut reporting positions.
The law is a notable experiment in using state tax policy to support local journalism. Its impact will depend on how many news organizations qualify and whether the incentive actually slows or reverses newsroom job losses.