Independent musicians, technicians and producers would be able to deduct 100 percent of their recording production expenses in the year they are incurred, rather than in later years, under a bipartisan bill introduced by U.S. Sen. Marsha Blackburn (R-TN).
Currently, the federal tax code allows film, television and theater productions to fully deduct production expenses in the year they are incurred, but not music production expenses.
“Singers and songwriters lift our spirits and now need our help to get past the pandemic,” Sen. Blackburn said last week. “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.”
The Help Independent Tracks Succeed (HITS) Act, S. 4955, which Sen. Blackburn cosponsored on Dec. 3 with bill sponsor U.S. Sen. Dianne Feinstein (D-CA), specifically would amend the Internal Revenue Code of 1986 to provide for an election to expense certain qualified sound recording costs otherwise chargeable to a capital account, according to the congressional record bill summary.
The Senate bill is the companion bill to the same-named H.R. 7886, introduced on July 30 by U.S. Reps. Ron Estes (R-KS) and Linda Sánchez (D-CA).
If enacted, the measure would allow up to $150,000 in recording production expenses to be deducted in the year they are incurred, rather than in later years.
The bill is supported by the Recording Academy and the American Association of Independent Music.