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American Association of Independent Music Asks Legislators For Relief Provision In Coronavirus Legislation
February 10, 2021 at 12:26 PM (PT)
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AMERICAN ASSOCIATION OF INDEPENDENT MUSIC (A2IM) President and CEO Dr. RICHARD JAMES BURGESS and a group of 119 leaders from the independent music industry in 19 states TODAY (2/10) requested a relief provision in CORONAVIRUS legislation. The group sent a letter to SENATE Majority Leader CHARLES SCHUMER (D-NY) and Speaker of the HOUSE NANCY PELOSI (D-CA) urging that a modest relief provision for the creation of recorded music must be included in the CORONAVIRUS RESCUE LEGISLATION that CONGRESS is debating.
A2IM has more than 600 record label members in over 30 states, and independent music represents over 30% of the U.S. market for recorded music. When President BIDEN released his AMERICAN RESCUE PLAN in JANUARY, he observed that among American small businesses, the arts have “suffered disproportionately.”
BURGESS said, “Musicians generally manage to cobble together a livable income only by combining live performances with the release of recorded music. With half of their income stream dormant for the foreseeable future, and elected officials frequently pointing to the power of music as a positive force to uplift people in tough times, we sincerely hope that we won’t get left behind."
Specifically, the group of artists, managers, agents, executives and independent record label owners have asked that the HELP INDEPENDENT TRACKS SUCCEED (HITS) ACT, authored by Senator DIANNE FEINSTEIN (D-CA), U.S. Representative LINDA SANCHEZ (D-CA), Senator MARSHA BLACKBURN (R-TN) and U.S. Representative RON ESTES (R-KS), be enacted into law. The legislation would grant the same tax treatment to sound recording production costs that is currently afforded to other arts productions including live theater, television and motion pictures.
Unlike many other relief proposals that entail direct federal spending to support ailing industries, the HITS Act simply speeds up music creators’ ability to deduct the first $150,000 of sound recording production costs from their taxable income. Because of advances in technology, many artists record and even release their own music today, and the benefit would extend not only to businesses but also to individuals.