SENATE GETS ITS OWN HITS ACT

Sen. Dianne Feinstein (D-Calif.) and Marsha Blackburn (RTenn.) have introduced their version of the HITS Act, which joins companion legislation in the House of Representatives. Clearly, D.C. pols are clueless about the reputation of HITS in music circles.

The Help Independent Tracks Succeed Act would allow musicians, technicians and producers to deduct 100% of up to $150,000 in recording-production expenses in the year they are incurred, rather than in later years.

The federal tax code already allows film, television and theater productions to fully deduct production expenses in the year they are incurred.

Companion legislation was introduced in the House by Reps. Linda Sánchez (D-Calif.) and Ron Estes (R-Kan.).

“Because most large, public gatherings have been prohibited since the pandemic began, musicians and music producers have been among the hardest hit by the coronavirus,” said Feinstein. “Our bill would provide relief.”

“Today’s introduction of the HITS Act in the Senate lays the groundwork for creators to produce new music and create jobs amidst a year filled with economic uncertainty,” said Recording Academy Chair and interim President/CEO Harvey Mason Jr. “This change in the tax code will incentivize more music production. The Recording Academy thanks Senators Feinstein and Blackburn for their leadership on this issue and for introducing the Senate companion to the House bill, which already enjoys broad, bipartisan support.”

Previously, a HITS act regarding taxes addressed whether staff bongs were office equipment or medical expenses.