Connecticut lawmakers have proposed a tax credit that would cover most of the cost when small businesses buy advertising from local newspapers and broadcast stations.

House Bill 5569, introduced by the Finance, Revenue and Bonding Committee, would create a five-year program beginning January 1, 2027. Businesses with 50 or fewer employees could claim a credit equal to 80 percent of their qualifying local advertising expenses in the first year, up to $5,000, according to Hartford Business Journal.

A public hearing before the Finance Committee has not yet been scheduled. The 2026 session adjourns May 6, and under Connecticut’s legislative rules, any bill not passed before adjournment dies.

The credit only covers local newspapers, radio, and TV

The credit channels small business advertising dollars specifically toward locally operating news and media companies, which have lost significant advertising revenue to national digital platforms over the past decade. Eligible spending is limited to advertising placed with these local media outlets — newspapers, local radio stations, and television stations. Digital-only platforms are not referenced as qualifying outlets in the current proposal.

Connecticut tried a public-sector version in 2023

The state has taken related steps before. In 2023, the House passed HB 6347, which would have required state agencies to direct a portion of their print and digital advertising budgets to Connecticut-owned and operated news organizations. The bill was amended from 50 percent to 15 percent before the House vote, and it did not advance through the Senate before the session ended.

HB 5569 takes a different approach, targeting private-sector spending instead.

The bill is part of a broader push on small business tax incentives

HB 5569 is moving alongside House Bill 5319, which would expand Connecticut’s research and development tax credit to small businesses and pass-through entities that are currently ineligible. That bill has support from the Lamont administration, the Commerce Committee, and CBIA, the state’s main business lobby. The Commerce Committee voted on HB 5319 earlier this month.

Together, the two proposals reflect an effort to lower the cost of doing business for smaller Connecticut companies — a category that includes the pass-through entities and LLCs that make up a large share of the state’s business base.

The 2026 legislative session runs through May 6.