This week, Representative Linda T. Sánchez (a California Democrat) introduced a bill to help independent music makers through a tax code change. The bill, which is being called the Help Independent Tracks Succeed (HITS) Act, is co-sponsored by Representative Ron Estes (a Kansas Republican).
The HITS Act, will “allow an individual to fully expense for tax purposes the cost of new studio recordings on their taxes, up to $150,000, within the same year of production,” according to the Recording Academy, which is supporting the legislation. Expenses includes studio equipment, studio rental fees, staff costs, studio musicians, and even electricity.
Richard James Burgess, president and CEO of the American Association of Independent Music (A2IM), explained to Billboard, “During this pandemic, upfront production costs can threaten the survival of small labels…. The HITS Act… will allow labels and artists to write off qualified recording costs in the year they were incurred. This will minimize the risk to small businesses and allow musicians to continue developing their careers while they are unable to tour.”
“The HITS Act will make a meaningful impact and help ease the financial burden for thousands of independent creators getting back on track, eager to share their creativity with the world,” Harvey Mason Jr., Chair and Interim President/CEO of the Recording Academy, said in a press release. “It will inspire new music and create opportunities for many of the vulnerable professionals in our community to persevere during these uncertain times.”
Published at Fri, 31 Jul 2020 15:13:37 +0000