Senate Bill Would Let Musicians, Music Producers Deduct Recording Expenses In Same Year As Incurred

Tax Code Update Proposal

A bill introduced in the SENATE TODAY (12/3) would let musicians, producers, and music technicians deduct 100% of their recording expenses up to $150,000 in the year they are incurred instead of requiring that they be spread out over later years. If passed, the bill would bring the music industry in line with the tax code provisions governing the film, television,and theater businesses.

The "Help Independent Tracks Succeed (HITS) Act" was co-sponsored by Sens. DIANNE FEINSTEIN (D-CA) and MARSHA BLACKBURN (R-TN), with a companion previously introduced in CONGRESS by Reps. LINDA SANCHEZ (D-CA) and RON ESTES (R-KS).

FEINSTEIN said, “Because most large, public gatherings have been prohibited since the pandemic began, musicians and music producers have been among the hardest hit by the Coronavirus. Our bill would provide relief by allowing independent musicians, technicians and producers to deduct their production expenses in the same year they occur, rather than forcing them to spread those deductions out over several years. This is in line with how expenses are treated for film, television and theater productions, and it makes sense to create parity for music productions.”
 
“Singers and songwriters lift our spirits and now need our help to get past the pandemic,” added BLACKBURN. “These artists are the lifeblood of NASHVILLE’s creative community. This bipartisan legislation will provide additional tax deductions to ease the burden facing our creative community by allowing our independent artists to fully deduct the cost of producing their music.”

RECORDING ACADEMY Chair and Interim Pres./CEO HARVEY MASON JR. said, “Today’s introduction of the HITS Act in the SENATE lays the groundwork for creators to produce new music and create jobs amidst a year filled with economic uncertainty. This change in the tax code – similar to the tax treatment of other creative industries – will incentivize more music production. The RECORDING ACADEMY thanks Senators FEINSTEIN and BLACKBURN for their leadership on this issue and for introducing the SENATE companion to the HOUSE bill, which already enjoys broad, bipartisan support.”

“The AMERICAN ASSOCIATION OF INDEPENDENT MUSIC and its more than 700 record label members across the country are grateful for the support of Senators FEINSTEIN and BLACKBURN in introducing the HITS Act,” said A2IM Pres./CEO Dr. RICHARD JAMES BURGESS. “In the face of the pandemic, musicians across the country are struggling to make a living and support their families, in part because they can’t tour or play live shows. The tax incentives contained in the HITS Act are designed to get musicians back into the recording studio by treating the costs of making a sound recording the same as production costs for other creative content. This is a common-sense, bipartisan, fiscally responsible measure that would be a great step forward for indie music, and thousands of artists in CALIFORNIA, TENNESSEE and across the nation.”

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