May 2021 Spotlight: The HITS Act

On March 16, Reps. Linda Sánchez (D-Calif.) and Ron Estes (R-Kan.), along with Senators Diane Feinstein (D-Calif.) and Marsha Blackburn (R-Tenn.), reintroduced the Help Independent Tracks Succeed (HITS) Act in the House (H.R. 1945) and Senate (S. 752). The HITS Act, which was first introduced in July 2020, allows an individual to fully expense, for tax purposes, the cost of new studio recordings on their taxes, up to $150,000, within the same year of production. The HITS Act also aligns the tax code for music production with existing provisions for qualified film, live theatrical, and television production companies who can already deduct 100 percent of their production expenses in the year such expenses are incurred.

The Recording Academy originally conceived of the HITS Act, and has been working closely with the bill sponsors on reintroduction and the legislative strategy for the 117th Congress. The bill has received support from the American Association of Independent Music (A2IM) and more than a dozen other music groups. The Academy’s Chair and Interim President/CEO, Harvey Mason jr., spoke to CNBC about the HITS Act, with additional coverage in Billboard and Digital Music News. 

If you have not already done so, please take the time to add your name to the following to support the HITS Act: https://www.grammy.com/advocacy/act#/52.