We’re pleased to share that Taproot Publishing Inc. has officially been designated as a Qualified Canadian Journalism Organization (QCJO), effective Feb. 7, 2024. This milestone reflects the growth we’ve achieved over the past few years. It also brings a tangible benefit for our members: access to the Digital News Subscription Tax Credit.
What does this mean for Taproot Edmonton members?
If you’ve been an active member of Taproot Edmonton at any point in 2024 — whether by joining this year or by making one or more membership payments in 2024 — you are eligible to claim the Digital News Subscription Tax Credit on your 2024 tax return. This means:
- Annual members can claim the full $100 membership fee.
- Monthly members can claim the total amount they paid for their membership in 2024.
To claim this credit, simply include the amount on Line 31350 of your tax return. For more details, visit the CRA’s guide on how to claim the Digital News Subscription Tax Credit.
The Digital News Subscription Tax Credit is “a non-refundable tax credit for amounts paid by individuals to a QCJO for qualifying subscription expenses.” As a result, it does not apply to business memberships.
Why did Taproot seek QCJO designation?
Designation enables us to provide this tax benefit to our members, which has long been requested by some of those who support our work. It is a recognition of our commitment to produce high-quality, original journalism for the Edmonton region, and it highlights how far we have come since our early days.
Being a QCJO also opens up new opportunities for Taproot to access additional funding and support. For example, we intend to claim the Canadian Journalism Labour tax credit. The designation also simplifies applying for other funds, such as the funding available under the Online News Act, which the Canadian Journalism Collective is responsible for distributing.
However, we still have reservations about the QCJO program. As we noted in 2021, the system risks delegitimizing valuable journalism organizations that don’t meet its criteria for reasons unrelated to the quality of their work. While we’re gratified to offer the tax credit benefit to members, we acknowledge the broader challenges the program presents within the media landscape.
Why does Taproot now qualify as a QCJO?
Achieving QCJO status is no small feat for small, independent news organizations like ours. The eligibility criteria include several straightforward requirements, such as producing original news content, focusing on general interest topics, and operating in Canada. While we’ve long met most of these requirements, one particular criterion stood out as a significant barrier: employing two or more journalists who are not freelancers and who work at arm’s length from the organization (i.e. are not the founders).
For many startups, this requirement is difficult to achieve. Small, independent news organizations often rely on freelance journalists or part-time contributors in their early stages. Building the capacity to hire multiple full-time staff takes time, growth, and money. Yet, these small organizations are often doing vital journalism that fills critical gaps in the media ecosystem. They cover stories that larger outlets overlook, provide context and nuance for local communities, and innovate with new ways of delivering news.
This criterion kept Taproot Edmonton from being eligible for QCJO status for years. But, thanks to the support of our members, other customers, and the growth we’ve achieved together, we’ve built a strong team that not only meets the QCJO requirement, but also exemplifies the kind of impactful, community-driven journalism we set out to provide.
Next steps
We’re in the process of being added to the federal government’s list of qualifying digital news subscriptions, so you’ll soon see Taproot Edmonton officially listed there. In the meantime, members can confidently claim the credit for their 2024 membership payments.
Join by Dec. 31 to claim the credit
If you’re not yet a member, now is the perfect time to join. Become a member before Dec. 31, and not only will you help make our work free for everyone in the Edmonton region, but you will also qualify for this tax credit on your 2024 return.
Taproot Publishing 