“Our hope is that we can get it done here before the 117th comes to a close because we have a lot of bipartisan support, bicameral support [in the] House and Senate,” says Recording Academy CEO“I really feel like this is something we should be able to get done and we’re hoping we can get done in the next few weeks.”
The bipartisan bill was first introduced in the House on July 31, 2020 , though it failed to pass as part of the two pandemic relief packages or as part of the $3.5 billion budget reconciliation package known as Build Back Better, which was ultimately halved and renamed the Inflation Reduction Act of 2022 before being signed into law in August.
Burgess adds that the bill won’t just affect musicians and producers but trickle down to other parts of the industry and the greater economy. “Every artist that makes a record, that has a knock on effect to many, many other musicians and ancillary workers in the music industry,” he says. “Getting these kinds of tax benefits will make a difference across the board.”
The HITS Act is a low-cost and commonsense modification to existing U.S. tax law that will incentivize the production of new sound recordings by allowing qualified productions to deduct 100% of their costs upfront. With an annual deduction limit of $150,000, the bill is designed and tailored to specifically incentivize independent creators and labels to produce new music, sparking important creative investments in countless music small businesses across the country.