(Hypebot) — A bipartisan bill has been introduced in Congress designed to help independent musicians, technicians, songwriters, and producers by allowing them to deduct 100% of recording expenses in the year incurred rather than in later years.
On Tuesday, Representatives Linda T. Sánchez (D-CA) and Ron Estes (R-KS) introduced the Help Independent Tracks Succeed (HITS) Act. Senators Dianne Feinstein (D-CA) and Marsha Blackburn (R-TN) will soon introduce companion legislation in the Senate.
The bi-partisan bill applies the same tax standard to music as it does for film and TV productions, which already enjoy a 100% first-year deduction. Recording expenses are capped at $150,000,
“The reintroduction of the HITS Act in 2023 is a much-needed step toward tax savings for recording artists, their label partners, and songwriters that will enable them to reinvest in new projects,” said Dr. Richard James Burgess MBE, President and CEO of A2IM. “HITS will create jobs and increase the recorded output of American music creators. The exact same tax relief has long been available to other creative sectors, so we are thankful to our congressional champions who are steadfast in supporting the independent recorded music culture.”
The HITS Act is supported by most major music trade groups and organizations, including the Recording Academy, the American Association of Independent Music (A2IM), the Music Artist Coalition, the Artist Rights Alliance, the Recording Industry Association of America, National Music Publishers’ Association (NMPA), SoundExchange, Global Music Rights, SESAC, National Independent Venue Association, National Independent Talent Organization, Future of Music Coalition, Digital Media Association, Nashville Songwriters Association International (NSAI), American Society of Composers, Black Music Action Coalition, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), Gospel Music Association, Christian Music Trade Association, Songwriters of North America, SAG-AFTRA, Songwriters Guild of America, Church Music Publishers Association, and Society of Composers & Lyricists.