Who Gets Ottawa’s Newsroom Tax Credit?

If your local news comes through a radio dial or a video feed, Ottawa’s November 5 budget could change who can afford to make it. The proposal would open a federal payroll credit for written journalism to qualifying private audio and video newsrooms. For the smallest outlets, the question is who can clear the staffing rules.

Picture one person reporting, recording and editing the local news. The credit’s proposed expansion would cover more formats, but that one-person newsroom would still face the same staffing threshold. To qualify, an organization generally has to produce original news and regularly employ at least two journalists who deal with it at arm’s length.

Hours matter, too. An eligible employee would generally need to average at least 26 hours a week and work 40 consecutive weeks within a tax year. At least three quarters of their time would have to go into making original news. Reporting, recording, editing and presenting can all count. That line matters for newsrooms that rely on short shifts or seasonal contracts.

For qualifying employers, the proposal would keep the credit at 35 per cent of eligible wages, up to $29,750 per employee annually, through the end of 2028. For the newly eligible broadcasters, qualifying costs would count from November 5. Employers claim the credit against payroll costs. The effect on local coverage depends on how those outlets use it.

Unifor had asked for the expansion and welcomed it. The Canadian Association of Broadcasters told The Canadian Press the credit could help local stations keep producing news. The next thing worth watching is which stations qualify and whether their reporters get more time to cover the communities they serve.