Individual income and corporate franchise taxes; local advertising expenses credit allowed.

HF 2221 creates a tax credit for small Minnesota businesses that spend on qualifying local media advertising. It allows eligible businesses (those with an average of fewer than 50 full-time employees) to claim a credit equal to 80% of their qualifying local newspaper or broadcast station advertising expenses in 2025, and 50% in 2026+, capped at $5,000 and then $2,500 annually. Qualifying media must be local newspapers or FCC-licensed stations serving Minnesota communities, meet specific editorial and employment criteria, and not be political or tax-exempt organizations. The credit expires after 2028 and cannot exceed a business's tax liability, with unused amounts carrying over for up to five years.