Office of the Revisor of Statutes
SF 2637
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/18/2025 10:00 a.m.
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A bill for an act
relating to taxation; individual income; corporate franchise; allowing a credit for
local advertising expenses; amending Minnesota Statutes 2024, sections 290.0131,
by adding a subdivision; 290.0133, by adding a subdivision; proposing coding for
new law in Minnesota Statutes, chapter 290.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 290.0131, is amended by adding a subdivision
to read:
new text begin Subd. 21. new text end
new text begin Advertising expenses. new text end
new text begin
The amount of qualifying local media advertising
expenses used to claim the credit under section 290.0696 is an addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 2.
Minnesota Statutes 2024, section 290.0133, is amended by adding a subdivision
to read:
new text begin Subd. 16. new text end
new text begin Advertising expenses. new text end
new text begin
The amount of qualifying local media advertising
expenses used to claim the credit under section 290.0696 is an addition.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 3.
new text begin
[290.0696] CREDIT FOR ADVERTISING IN LOCAL MEDIA.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
(a) For purposes of this section, the following terms have
the meanings given.
new text end
new text begin
(b) "Applicable percentage" means 80 percent for a taxable year described in subdivision
2, paragraph (b), and 50 percent for a taxable year described in subdivision 2, paragraph
(c).
new text end
new text begin
(c) "Qualified publisher" means a publisher that:
new text end
new text begin
(1) is not an organization described in paragraph (4), (5), or (6) of section 501(c) of the
Internal Revenue Code;
new text end
new text begin
(2) is not a political organization, as defined in section 527(e) of the Internal Revenue
Code;
new text end
new text begin
(3) is not any organization controlled by one or more organizations described in clause
(1) or (2);
new text end
new text begin
(4) is not any organization that received more than $100,000 in the aggregate from
organizations described in clauses (1) to (3) in a taxable year; or
new text end
new text begin
(5) does not meet the requirements under clauses (1) to (4) for any period beginning one
year before the date of enactment of this section and the date on which a qualifying local
media advertising expense is paid or incurred.
new text end
new text begin
(d) "Local news journalist" means any individual who regularly gathers, prepares,
produces, collects, edits, photographs, records, directs the recording of, writes, presents, or
reports news or information that concerns local events or other matter of local public interest.
new text end
new text begin
(e) "Local newspaper" means any print or digital publication if:
new text end
new text begin
(1) the primary content of the publication is original content derived from primary sources
and relating to news and current events in Minnesota;
new text end
new text begin
(2) the publication primarily serves the needs of a regional or local community in this
state;
new text end
new text begin
(3) the publisher of the publication:
new text end
new text begin
(i) employs at least one full-time local news journalist who resides in the regional or
local community;
new text end
new text begin
(ii) employs not more than 750 employees, of which greater than half are employed in
Minnesota; and
new text end
new text begin
(iii) is a qualified publisher.
new text end
new text begin
(f) "Qualifying local media advertising expenses" means any trade or business expense
deductible under section 162 of the Internal Revenue Code for:
new text end
new text begin
(1) advertising in a local newspaper; or
new text end
new text begin
(2) advertising on any broadcast radio or television station licensed by the Federal
Communications Commission to serve a local community.
new text end
new text begin
For purposes of this paragraph, "advertising" includes sponsorships.
new text end
new text begin
(g) "Qualifying taxpayer" means a taxpayer employing an average of less than 50 full-time
employees a taxable year, as determined under section 4980H(c)(2) of the Internal Revenue
Code.
new text end
new text begin Subd. 2. new text end
new text begin Credit allowed. new text end
new text begin
(a) A qualifying taxpayer is allowed a credit against the tax
due under this chapter equal to the applicable percentage of the qualifying local media
advertising expenses paid by the qualifying taxpayer in a taxable year.
new text end
new text begin
(b) For taxable years beginning after December 31, 2024, and before January 1, 2026,
the amount of the credit allowed under paragraph (a) must not exceed $5,000.
new text end
new text begin
(c) For taxable years beginning after December 31, 2025, the amount of the credit allowed
under paragraph (a) must not exceed $2,500.
new text end
new text begin Subd. 3. new text end
new text begin Limitation; carryover. new text end
new text begin
The credit must not exceed the liability for tax under
this chapter. If the amount of the credit allowed exceeds the liability for tax of the taxpayer,
the excess is a local advertising credit carryover to each of the five succeeding taxable years.
The entire amount of the excess unused credit for the taxable year must be carried first to
the earliest of the taxable years to which the credit may be carried and then to each successive
year to which the credit may be carried. The amount of the unused credit that may be added
under this clause must not exceed the taxpayer's liability for tax under this chapter less the
local advertising credit for the taxable year.
new text end
new text begin Subd. 4. new text end
new text begin Partnerships; multiple owners. new text end
new text begin
Credits granted to a partnership, a limited
liability company taxed as a partnership, or an S corporation are passed through to the
partners, members, or shareholders, respectively, pro rata to each partner, member, or
shareholder based on their share of the entity's assets or as specially allocated in their
organizational documents or any other executed agreement, as of the last day of the taxable
year.
new text end
new text begin Subd. 5. new text end
new text begin Expiration. new text end
new text begin
The credit under this subdivision expires January 1, 2029, for
taxable years beginning after December 31, 2028.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end