Congress should not pass legislation that would make advertising more expensive for local businesses and hurt free, local broadcasting. Advertising is treated as an ordinary and necessary business expense - just like salaries, rent and utilities - under the U.S. Tax Code. This means a business can deduct the expense in the year it was incurred. Some in Congress have suggested changing the tax treatment of advertising, which would ultimately make advertising more expensive for small businesses, threaten local jobs and have a devastating impact on radio and television stations that rely on ad revenue to survive.
For these reasons, advertising should remain fully deductible as an ordinary and necessary business expense in the year it is incurred. Broadcasters thank the 124 bipartisan members of the House of Representatives who recently sent a letter to House leaders opposing any harmful changes. Any legislation that discourages advertising would hurt small businesses, impact jobs and harm broadcasters' ability to serve their local communities.
1 and 2 Source: Woods and Poole Economics, "An Analysis of the Importance of Commercial Local Radio and Television Broadcasting to the United States Economy: 2017"
3 Source: IHS Economics and Country Risk, "The Economic Impact of Advertising in the United States: March 2015"