Senate Bill Would Allow Tax-Exempt Status for Newspapers

Sen Benjamin Cardin (D-MD) introduced the Newspaper Revitalization Act, a bill that would explicitly include newspapers among organizations eligible for 501(c)(3) status. The non-profit status is the same that public radio and television have now. The legislation would give a national green light for newspapers to adopt the so-called Low Profit Limited Liability Company business model, often shortened to L3C. Under Cardin's legislation, newspaper revenue would be tax-exempt, and contributions to papers would be tax deductible. The status would also allow non-profits to invest in newspapers, something that is forbidden now. Sen Cardin said action is needed to help preserve local newspapers.