The proposed legislation, General Assembly Raised Bill No. 5569, aims to establish a tax credit for small businesses in Connecticut that incur qualified local media advertising expenses. Effective January 1, 2027, the bill defines "local newspaper" and "local news journalist," and specifies that a "small business" is one with fifty employees or fewer. The tax credit will be available for income or taxable years from 2027 to 2032, allowing small businesses to claim a credit of 80% of their qualified local media advertising expenses (up to $5,000) for the first year, and 50% (up to $2,500) for subsequent years.

Additionally, the bill stipulates that if the taxpayer is an S corporation or a partnership, the credit can be claimed by shareholders or partners. It also clarifies that a small business cannot claim a credit for the same expenses that are deducted as a business expense. The legislation is designed to support local media by incentivizing small businesses to advertise in local publications and on local broadcast stations.