Illinois Allocates $4 Million in Tax Credits to Support Local News Organizations

Strategic Insights -

A new law designed to encourage the retention and hiring of journalists has provided $4 million in state tax credits to 40 Illinois local news entities, operating 120 outlets. The recipients represent a diverse cross-section of Illinois' local news ecosystem, spanning major legacy organizations, small community newspapers, digital startups, and public broadcasters. Most of the funding went to organizations outside the Chicago metro area, with nonprofit outlets receiving 30% of the money.

Key Takeaways:

  • The Illinois tax credit program aims to support the retention and hiring of journalists in local news organizations.
  • 40 Illinois local news entities, operating 120 outlets, have received $4 million in state tax credits.
  • The recipients represent a diverse cross-section of Illinois' local news ecosystem, including major legacy organizations, small community newspapers, digital startups, and public broadcasters.
  • Most of the funding went to organizations outside the Chicago metro area.
  • Nonprofit outlets received 30% of the money.
  • 61 entities have applied for funding, with 49 of those approved, 5 denied, and 7 under review.
  • The Department of Commerce and Economic Opportunity did not immediately provide a response to written questions about the denied applicants.
  • News organizations must apply and demonstrate eligibility based on certain criteria, including consistent publication of original local content and employment of journalists.
  • The legislation attempted to cap the amount of funding to organizations backed by private funds.
  • Lee Enterprises, a company backed by private funds, received the largest amount of tax credits at $375,000 across applications for four newspapers.
  • Illinois became the first state to distribute money directly to local news organizations for employing journalists.
  • 22 states and municipalities have passed or are considering bills to support local news.
  • Illinois currently has 5 news desert counties and has lost 45% of its newspapers since 2005.
  • The state also lost 54% of its newspaper employees in the decade ending in 2023.

Statistics:

  • $4 million in state tax credits allocated to 40 Illinois local news entities.
  • 120 outlets represented by the recipients.
  • 30% of the money allocated to nonprofit outlets.
  • 61 entities applied for funding, with 49 approved and 5 denied.
  • 7 applications remain under review.
  • $375,000 in tax credits received by Lee Enterprises for four newspapers.
  • 53% of Illinois' newspapers have been lost since 2005.
  • 54% of Illinois' newspaper employees have been lost in the decade ending in 2023.
  • 5 news desert counties in Illinois.

Sources:

  • Documents released by the Medill Local News Initiative.
  • Freedom of Information request by the Medill Local News Initiative.
  • Rebuild Local News.
  • Illinois Department of Commerce and Economic Opportunity.
  • Illinois State Legislature.
  • Illinois Press Association.
  • John Volk, Medill Local News Initiative.