A tax break for recording artists succeeded in reducing the House Democrats’ latest version of President Biden’s over $ 1.75 trillion social spending bill – allowing music producers to deduct up to $ 150,000 for “qualified sound recording productions”.
The provision aims to amend Article 181 of the Tax Code, which currently allows deductions for “qualified film or television production, and any qualified live theatrical production”, to include “qualified sound recording production”, a change that the Recording Academy, the group behind the Grammy Awards, has been pushing hard for.
The language mirrors that of the HITS Act, a bipartisan bill led by Sens. Dianne Fienstein (D-Calif.), Marsha Blackburn (R-Tenn.) And Reps. Linda Sánchez (D-Calif.) And Ron Estes (R- Kansas).
Language had already been omitted from two pandemic relief measures despite lobbying efforts.
The Recording Academy applauded the movement, praising Feinstein and Sánchez for their efforts to push for change.
Supporters of the provision argue that it is a necessary step to help equalize tax breaks across the entertainment industry and help musicians, technicians and independent producers who have been financially affected by the pandemic.
“We are grateful to @RepLindaSanchez and @SenFeinstein for their leadership in promoting #HITSAct, and to our constituents and our advocacy team on the ground in DC for their support in defending this key legislation on behalf of the creators of music, ”the group tweeted.
“The inclusion of #HITSAct in the most recent version of the House Build Back Better Act is an important victory. An important victory for the music creators and members of @RecordingAcad who fought to create a base of recovery amid the challenges posed by the pandemic. #HITSAct. ”
Democratic House leaders are scrambling to rally support for the reconciliation measure as disagreements over a handful of provisions have emerged between the party’s different factions. President Nancy Pelosi (D-Calif.) Has said she would like to see both the social spending measure and a two-party $ 1.2 trillion infrastructure program passed by the Senate by the end of the week.