Tax breaks for companies that hire journalists were increased in the federal government’s Fall Economic Statement on Tuesday.
Here’s what was in the statement about the Canadian journalism labour tax credit:
Supporting Journalists and News Organizations
“Independent journalism makes our democracy stronger—and local journalism is essential to providing communities with the information they need from coast to coast to coast. However, the changing nature of the news industry is threatening the existence of local news across Canada.
“To ensure a strong and independent press can continue to thrive in Canada, the 2023 Fall Economic Statement proposes to enhance the Canadian journalism labour tax credit. Effective for labour costs incurred on or after January 1, 2023, the federal government proposes to increase the yearly limit on labour costs that can be claimed per eligible employee from $55,000 to $85,000, and temporarily increase the tax credit rate from 25 per cent to 35 per cent for a period of four years.
“This measure would cost an estimated $129 million over five years, starting in 2024-25, with $10 million per year ongoing.”
What is the Canadian journalism labour tax credit? See the government’s explanation here
News Media Canada, which represents publishers, is happy with the expanded tax credit: News Media Canada welcomes changes to Canadian Journalism Labour Tax Credit
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