or incurred. (3) Application to certain organizations exempt from tax In the case of any print or digital publication which is published by any organization described in section 501(c) and exempt from tax under section 501(a)— (A) such publication shall be treated as a local newspaper only if the publication of print and digital publications is the primary activity of such organization, and (B) any person making a charitable contribution (as defined in section 170(c)) to such organization may elect to treat such contribution as an amount paid or incurred for a subscription to which this section applies in lieu of treating such contribution as a charitable contribution for purposes of section 170. (e) Termination No credit shall be allowed under this section for any amount paid or incurred in a taxable year ending after the close of 5-year period beginning on the date of the enactment of this section. . (b) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Local newpaper subscriptions. . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years ending after the date of the enactment of this Act. 3. Payroll credit for compensation of journalists (a) In general In the case of an eligible newspaper employer, there shall be allowed as a credit against the taxes imposed by section 3111(a) of the Internal Revenue Code of 1986 for each calendar quarter an amount equal to the applicable percentage of the qualified journalism compensation paid to each individual for such calendar quarter. (b) Limitations and refundability (1) Compensation taken into account The amount of qualified journalism compensation paid with respect to any individual which may be taken into account under subsection (a) during any calendar quarter by the eligible newspaper employer shall not exceed $12,500. (2) Credit limited to employment taxes The credit