The American Association of Independent Music (A2IM) extends its heartfelt thanks to congressional leaders for the passing of the HITS Act (Help Independent Tracks Succeed) – legislation that allows qualified sound recording producers and artists to deduct 100% of production expenses in the year they are incurred. This would provide parity with film, television, and live theatrical productions that already benefit from this tax provision.
A2IM, the leading trade association driving advocacy for the bill since its inception, in partnership with the Recording Academy®, leveraged its national network of independent labels so that elected officials across the country heard from small business owners in their home districts and states.
“A2IM applauds the inclusion of the HITS Act in the final budget reconciliation package,” said Dr. Richard James Burgess MBE, President and CEO of A2IM. “This marks a historic victory for independent music creators. After years of tireless advocacy, we’ve righted a longstanding inequity by enabling independent labels, artists, musicians, songwriters, and publishers to fully expense recording costs—just as their peers in film, TV, and theater have long done.”
The HITS Act provides crucial tax relief for independent artists, songwriters, and labels by allowing up to $150,000 in music production expenses to be deducted in the year they are incurred. This aligns the music industry with other creative sectors, such as film, television, and live theater, which already benefit from similar tax incentives.
“With today’s final passage of the domestic policy bill, music creators across the country can celebrate the HITS Act becoming law, bringing much-needed support to independent artists and songwriters," said Harvey Mason jr., CEO, Recording Academy. "As the industry navigates an evolving musical landscape, this moment represents meaningful progress toward protecting creators and sustaining a vibrant music ecosystem. The Recording Academy is proud to have partnered with Reps. Estes and Sánchez and Senators Blackburn and Cortez Masto over many years to bring the HITS Act to life, and we are deeply grateful for their unwavering support. This is a powerful win for independent artists, giving them the support they need to keep creating and ensuring the music industry continues to thrive."
Burgess continues, “This success would not have been possible without the unwavering leadership of Senator Marsha Blackburn, Representative Ron Estes, Senator Catherine Cortez Masto, Representative Linda Sánchez, and the late Senator Dianne Feinstein. We’re deeply grateful to these champions for standing with us.”
A2IM looks forward to the President signing the bill, which began as a response to the pandemic, but it is needed just as much today — especially as independent music creators struggle to make a living while big tech platforms use their market power to pay less and less for the music that attracts their audiences.
From the Desk of A2IM President, Dr. Richard James Burgess MBE
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I’m thrilled to share some fantastic news with you: the HITS Act, that we have been working on getting passed since 2021, has officially been signed into law. This long-awaited legislation will provide significant tax relief to independent labels by allowing qualified recording production expenses to be deducted in the year they are incurred, rather than being amortized over three years. For many of our members this means increased financial flexibility to invest in new projects, create more music, and grow your businesses sustainably. The passage of the HITS Act is a direct result of years of hard work and persistent advocacy by A2IM, the Recording Academy and our partners across the music community. It demonstrates the power of collective action when we stand together to support independent music. I want to extend my deepest gratitude to our dedicated advocacy team, whose tireless efforts on Capitol Hill and beyond made this achievement possible. Their commitment to amplifying the voice of independent music has once again proven invaluable. We look forward to continuing to work with all of you to build on this momentum, and we remain steadfast in our mission to protect and promote the interests of the independent music sector. If you have any questions about how the HITS Act may impact your business, please don’t hesitate to reach out to us. |
