Budget & Taxes (Small Business)

HR 1753 creates two new tax credits to support local journalism and small businesses. It offers a 80% credit (up to $5,000) for eligible small businesses (with <50 full-time employees) that advertise in qualifying local media like community newspapers or FCC-licensed radio/TV stations, reducing to 50% ($2,500 max) after the first year. A separate credit provides 50% (then 30%) of wages paid to local news journalists (at least 200 hours quarterly) for employers whose primary income comes from local newspaper publishing, capped at $12,500 per journalist per quarter. Both credits expire after 5 years and require strict definitions of "local" media to qualify, including having in-community journalists and limiting corporate ownership. The bill directly affects small local news publishers and qualifying small businesses seeking tax relief for local advertising and journalism staffing.

This bill creates a $200 million fund for small businesses that suffered at least a 25% revenue loss due to recent federal immigration enforcement actions in their area. Eligible businesses must be small (as defined by the Small Business Act), not operate over 15 locations, and not be publicly traded. Grants cover verified revenue losses up to $1 million total per business or $500,000 per physical location, with applicants certifying they haven’t received other compensation for these losses. The fund, available for fiscal year 2026, requires fraud checks including tax verification and database cross-referencing during applications.

This bill provides tax relief for small businesses by creating a graduated corporate tax rate, where businesses with taxable income under $5 million would pay 18% on the first $400,000 of income and 21% on the remainder. It establishes special tax treatment for investment management services provided through partnership structures, reclassifying certain capital gains and losses as ordinary income or loss for these specific partnerships. The bill also includes an enhanced deduction for lower-income self-employed individuals with adjusted gross income under $400,000 and increases the excise tax on corporate stock repurchases from 1% to 1.5%. These provisions primarily affect small businesses, small business owners, and investment management professionals operating through partnership structures.