Starting January 1, 2023, and ending December 31, 2033, Colorado small businesses can receive a 50% income tax credit, up to $2,500 annually, for advertising with local news outlets, according to Leg Colorado. This pioneering initiative, part of a broader effort to bolster local media, aims to funnel significant private sector funds into struggling newsrooms across the state. A footnote in the state budget, signed by Gov. Jared Polis on May 8, requires state agencies to prioritize spending with local print, broadcast, and digital news organizations, according to Rebuildlocalnews.

Local news organizations face ongoing financial challenges, but Colorado directly mandates and incentivizes financial support through state advertising prioritization and small business tax credits. The dual approach shows a robust commitment from the state to bolster its local media landscape.

Based on this direct legislative intervention, Colorado's local news ecosystem is likely to see a significant, albeit state-supported, financial boost, potentially setting a precedent for other states to follow.

State Agencies Must Prioritize Local Media

  • The bill requires all state departments to spend at least 50% of their advertising budget intended for Colorado residents on advertising through local newspapers, according to leg.colorado.gov.
  • Colorado's FY 2026-27 budget footnote requires agencies to implement a plan to prioritize expending marketing money with Colorado-based media, according to Skyhinews.
  • The budget includes language intended to support the local news industry by prioritizing state advertising expenditures with Colorado-based media, according to skyhinews.com.

While the legislative text specifies 'local newspapers' for the 50% mandate, a budget footnote broadens this scope to 'local print, broadcast and digital news organizations,' according to rebuildlocalnews.org. This implies potential ambiguity in implementation regarding which specific media types qualify for the mandated state ad spending, possibly leading to disputes or uneven distribution of funds across different local media formats. These mandates ensure a significant and consistent revenue stream is directed towards local news organizations, directly impacting their financial stability. By requiring state departments to spend at least 50% of their ad budget on local news, Colorado is effectively transforming local media outlets into state contractors, potentially shifting their focus from reader-supported journalism to government-dependent revenue streams.