AB2222 creates refundable California tax credits for local news outlets that employ journalists from 2027 through 2031. Qualifying outlets may claim $20,000 for each of the first five full-time journalists, $15,000 for each additional full-time journalist, $7,500 for each part-time journalist, and another $15,000 for each new full-time journalism position. The bill also conforms state tax law to federal restrictions on business deductions for compensation above $1 million paid to certain highly compensated employees.

The California State Senate passed AB2222 on August 30, 2026 by a vote of 30 to 10. We have assigned pluses to the nays because government should not use the tax code to subsidize favored industries or professions. By providing refundable tax credits specifically to news outlets that employ journalists, AB2222 would shift a portion of those private businesses' payroll costs onto taxpayers while giving qualifying outlets a government-created financial advantage unavailable to other businesses. Such targeted subsidies can distort the free market, encourage government favoritism, and create greater financial dependence between news organizations and the state. A free press is better preserved when news outlets remain financially independent of government and compete on equal terms in the marketplace.