December 5, 2020 – Washington – Senators Dianne Feinstein (D-Calif.) and Marsha Blackburn (R–Tenn.) have launched the bipartisan Support Independent Tracks Triumph Act, a bill that would permit musicians, specialists and producers to deduct 100 p.c of recording creation charges in the 12 months they are incurred, rather than in later years.
(Remaining) Senator Dianne Feinstein (D-Calif.)
The federal tax code previously permits movie, tv and theater productions to totally deduct creation charges in the 12 months they are incurred, but not music output costs.
Companion laws was launched in the Residence by Reps Linda Sánchez (D-Calif.) and Ron Estes (R-Kan.).
“Because most large, public gatherings have been prohibited given that the pandemic began, musicians and tunes producers have been among the toughest hit by the coronavirus,” claimed Senator Feinstein. “Our monthly bill would provide relief by allowing for impartial musicians, professionals and producers to deduct their generation bills in the exact same calendar year they take place, fairly than forcing them to spread those people deductions out about various several years. This is in line with how charges are handled for movie, television and theater productions, and it helps make feeling to develop parity for songs productions.”
“Singers and songwriters elevate our spirits and now need to have our assistance to get previous the pandemic,” mentioned Senator Blackburn. “These artists are the lifeblood of Nashville’s imaginative local community. This bipartisan laws will supply additional tax deductions to relieve the stress struggling with our inventive group by enabling our unbiased artists to completely deduct the value of producing their songs.”
The invoice would make it possible for up to $150,000 in recording manufacturing fees to be deducted in the 12 months they are incurred, rather than in later yrs.
In accordance to the Copyright Alliance study in June, 88 p.c of creators experienced misplaced profits owing to the coronavirus pandemic, which was extra than double the nationwide average for other industries. Approximately half of the respondents had shed 90 percent or more of their revenue.
“Today’s introduction of the HITS Act in the Senate lays the groundwork for creators to produce new songs and produce employment amidst a calendar year stuffed with financial uncertainty,” reported Harvey Mason jr., chair and interim president/CEO of the Recording Academy. “This modify in the tax code – identical to the tax treatment of other imaginative industries – will incentivize more new music production. The Recording Academy many thanks Senators Feinstein and Blackburn for their management on this concern and for introducing the Senate companion to the House invoice, which by now enjoys broad, bipartisan support.”
“The American Affiliation of Impartial New music and its a lot more than 700 history label users throughout the place are grateful for the assistance of Senators Feinstein and Blackburn in introducing the HITS Act,” said Dr. Richard James Burgess, president and CEO of A2IM. “In the experience of the pandemic, musicians across the place are having difficulties to make a living and support their people, in portion since they can’t tour or participate in stay displays. The tax incentives contained in the HITS Act are developed to get musicians back into the recording studio by dealing with the expenditures of producing a seem recording the very same as production fees for other imaginative articles. This is a typical-sense, bipartisan, fiscally accountable measure that would be a good step ahead for indie audio, and thousands of artists in California, Tennessee and throughout the country.”
Resource: Senator Dianne Feinstein