Ottawa extends journalism tax credit and announces new funding for local news organizations

OTTAWA — The federal government has announced significant new financial measures to support Canadian journalism, extending the Canadian Journalism Labour Tax Credit and expanding assistance for local news organizations facing mounting financial pressures.

The measures, included in the November 5 federal budget, propose $501 million over five years to maintain and broaden the journalism tax credit, followed by $85 million in ongoing annual funding.

The government will extend the temporarily enhanced 35-per-cent refundable tax credit for original written journalism through December 31, 2028, while expanding eligibility to qualifying private audio and audiovisual news organizations.

Eligible news organizations can claim the credit on up to $85,000 in annual labour expenses per qualifying newsroom employee, representing a maximum credit of $29,750 per employee.

Ottawa is also proposing $134 million over four years, beginning in 2027–28, and $41 million annually thereafter for the Local Journalism Initiative, which supports reporting in underserved communities across Canada.

The measures are intended to provide greater financial stability to an industry affected by declining advertising revenue, changing consumption habits and the growing dominance of digital platforms.

For smaller, independent and community-based publications, the funding could provide additional opportunities to sustain reporting operations and maintain coverage of issues frequently overlooked by larger media organizations.

The tax-credit expansion to audio and audiovisual production also reflects the changing nature of journalism, as news organizations increasingly distribute reporting through video, podcasts and other multimedia formats.

Eligibility for the credit will continue to depend on qualifying journalism organization status and applicable federal requirements.

The measures represent a substantial federal commitment to preserving local journalism and supporting Canada’s diverse news media sector.