TOPEKA — U.S. Rep. Ron Estes of Kansas performed a political duet with a California lawmaker for the introduction of federal legislation allowing independent artists, producers and labels to deduct from income taxes up to $150,000 in production expenses for new recordings.
The Help Independent Tracks Succeed Act, or HITS Act, would allow up to 100% deductions for records created in the United States in the year the expenses were incurred. Under existing law, artists amortize costs for tax purposes over the economic life of a sound recording.
“I’ve been a fierce advocate for immediate expensing when Americans design, research and develop new products and services here in our own country, and we should do the same for the small businesses and content creators in the music industry,” said Estes, the state’s 4th District Republican.
FILM, TELEVISION and live theater productions benefit from this federal tax provision. A bill for the music recording industry was also introduced in the U.S. House during 2023.
Rep. Linda Sanchez, D-California, joined with Estes in sponsoring legislation.
“Music is a universal language that unites us and brings joy to our lives,” she said. “Our bill provides immediate relief, giving creators the ability to reinvest in their craft without the burden of delayed tax deductions, ensuring they can continue creating the music that connects us all.”
Adam Hartke, a Kansas independent music advocate and venue owner, said he would welcome tax policy that helped the independent music ecosystem face challenges of industry consolidation.
He said the HITS Act would deliver “responsible tax relief recognizing artists’ vital contributions to American culture, our quality of life and economic growth.”
The legislation was backed by the Recording Academy, which represents thousands of performers, songwriters, producers, engineers and music professionals.
