March 17, 2021 – Washington – Senators Dianne Feinstein (D-Calif.) and Marsha Blackburn (R-Tenn.) and Representatives Linda Sánchez (D-Calif.) and Ron Estes (R-Kan.) at this time launched the bipartisan Help Independent Tracks Succeed Act, a invoice that may enable musicians, technicians and producers to deduct 100% of recording manufacturing bills within the 12 months they’re incurred, somewhat than in later years.
(Left) Senator Dianne Feinstein (D-Calif.)
The federal tax code already permits movie, tv and theater productions to completely deduct manufacturing bills within the 12 months they’re incurred, however not music manufacturing bills. Implementing this variation would assist these leisure professionals survive the financial downturn introduced on by the COVID-19 pandemic.
“The pandemic has made it more durable for many individuals to make ends meet, together with musicians and music producers who’ve been among the many hardest hit due to bans on massive gatherings,” mentioned Senator Feinstein. “Our invoice would enable unbiased musicians, technicians and producers to deduct their manufacturing bills in the identical 12 months they happen, somewhat than forcing them to unfold these deductions out over a number of years. This modification would assist preserve music creators afloat till we will once more collect and hearken to them in individual.”
“The music from Nashville strikes a chord with people throughout the nation,” mentioned Senator Blackburn. “Nevertheless, the distinctive burdens confronted by the humanities group compelled many to cease writing, performing, and producing altogether. The HITS Act will present focused tax deductions to assist our musicians and permit them to get again to work.”
“Like households and staff throughout the nation, music producers and creators in every of our communities have been hit laborious by this pandemic. In reality, they have been among the many first out of labor as excursions and festivals have been canceled, venues shuttered, and studio classes have been postponed,” mentioned Congresswoman Sánchez. “Right this moment, I’m proud to re-introduce the HITS Act. This invoice will make issues just a bit simpler for the small, unbiased creators that make the music we frequently flip to throughout laborious instances like this.”
“As for therefore many People, shutdowns and social distancing introduced havoc for small recording artists over the previous 12 months,” mentioned Congressman Estes. “The bipartisan HITS Act will assist 1000’s of unbiased music creators across the nation by offering frequent sense tax financial savings on sure bills – giving this business the focused reduction it wants as our nation recovers.”
The invoice would enable as much as $150,000 in recording manufacturing bills to be deducted within the 12 months they’re incurred, somewhat than in later years.
In response to the Copyright Alliance survey final 12 months, 88 % of creators had misplaced earnings as a result of coronavirus pandemic, which was greater than double the nationwide common for different industries. Roughly half of the respondents had misplaced 90 % or extra of their earnings.
Along with Representatives Sánchez and Estes, the invoice is cosponsored within the Home by Representatives Judy Chu (D-Calif.), Michael McCaul (R-Texas), Suzan DelBene (D-Wash.) and Grace Napolitano (D-Calif.).
The HITS Act is supported by the Recording Academy, American Affiliation of Unbiased Music (A2IM), SAG-AFTRA, Music Artists Coalition, Artists Rights Alliance, Recording Trade Affiliation of America, Nationwide Music Publishers Affiliation, SoundExchange, International Music Rights, SESAC, Nationwide Unbiased Venue Affiliation, Nationwide Unbiased Expertise Group, Way forward for Music Coalition, Digital Media Affiliation, Nashville Songwriters Affiliation Worldwide, ASCAP, BMI, Gospel Music Affiliation, Christian Music Commerce Affiliation and Songwriters of North America.
“A 12 months after the pandemic introduced social distancing and shutdowns, unbiased music creators have been hit laborious, which is why the Recording Academy is happy to assist the reintroduction of the HITS Act,” mentioned Harvey Mason Jr., chair and interim president/CEO of the Recording Academy. “This bipartisan invoice will change the tax code – placing music creators on a stage taking part in area with different inventive industries – serving to 1000’s of unbiased creators get again on monitor by incentivizing music manufacturing, creating new alternatives and revitalizing the music economic system. We thank Senators Feinstein and Blackburn and Representatives Sánchez, Estes, Chu, McCaul, DelBene and Napolitano.”
“As we start to see the sunshine on the finish of the tunnel of the pandemic, unbiased music creators are nonetheless combating the devastating monetary impression it has wrought” mentioned Richard James Burgess, president and CEO of A2IM, the American Affiliation of Unbiased Music. “Whereas all of us transfer ahead into what we hope can be a brighter summer season and fall, the HITS Act would supply much-needed tax financial savings for recording artists and their label companions to reinvest in new tasks. This has the twin good thing about incentivizing job creating exercise in our business and serving to artists make ends meet. We’re grateful to the members of Congress who’ve labored so laborious on this invoice.”
Supply: Senator Dianne Feinstein