Purpose of the Bill

The bill aims to provide financial incentives for businesses by allowing tax credits for local advertising expenses, promoting support for local media outlets and encouraging businesses to engage with their local communities through advertising.

Main Provisions

• Tax Credit Introduction: The bill introduces a new tax credit for individuals and corporations that incur expenses related to advertising in local media. This is applicable to individual income taxes and corporate franchise taxes.

• Amendments to Existing Statutes: The bill proposes amendments to Minnesota Statutes chapter 290. Specifically, it adds subdivisions to sections 290.0131 and 290.0133 to integrate the new credit mechanism and stipulate how qualifying local media advertising expenses will be treated for tax purposes.

Significant Changes to Existing Law

• This bill introduces a new component to the tax code that was not previously available, allowing businesses to receive a credit against their taxes for certain qualifying expenses related to local advertising. It marks a shift by explicitly incentivizing local media marketing, which may previously have been considered just a business expense without specific tax credit eligibility.

Relevant Terms

local advertising, tax credit, local media, individual income tax, corporate franchise tax, Minnesota Statutes, qualifying expenses, chapter 290.