U.S. Rep. Ron Estes (R-KS) on July 30 unveiled a bipartisan bill to permit qualified sound recording producers to deduct 100 percent of their production expenses in the year they are incurred, a proposal that would provide parity with film, television and live theatrical productions already benefiting from such a tax provision.
Rep. Estes is the lead original cosponsor of the Help Independent Tracks Succeed (HITS) Act, H.R. 7886, with bill sponsor U.S. Rep. Linda Sanchez (D-CA), which specifically would 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 men and women who make music — either through writing, singing, playing or producing — deserve to have the same tax benefits as artists in the film, television and live theater industries,” Rep. Estes said. “The HITS Act is sound legislation that supports our creative communities throughout the United States and encourages music makers of all sizes and notoriety.”
Rep. Sanchez noted that H.R. 7886 also would “provide small, independent creators with a bit of help getting back to work” during the COVID-19 pandemic.
The Recording Academy, which produces the GRAMMY Awards and represents some 21,000 performers, songwriters, producers, engineers, and music professionals, last week endorsed H.R. 7886.
The measure has been referred for consideration to the U.S. House Ways and Means Committee.