The American Association of Independent Music (A2IM) and the Recording Academy applauded Congress on Thursday (July 3) for passing the Help Independent Tracks Succeed Act.
The legislation, also known as HITSAct, will allow recording producers and artists to deduct up to $150,000 in recording expenses immediately rather than spreading costs over multiple years.
The organizations led advocacy efforts for the measure, with A2IM leveraging its network of over 700 independent labels to build support across congressional districts and states.
The HITS Act will soon allow independent artists, songwriters, and labels to enjoy the same tax incentives that are already being enjoyed by their counterparts in the film, television, and live theater sectors.
Dr. Richard James Burgess MBE, President and CEO of A2IM, said: “A2IM applauds the inclusion of the HITS Act in the final budget reconciliation package.”
“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.”
“A2IM applauds the inclusion of the HITS Act in the final budget reconciliation package.”
Dr. Richard James Burgess MBE
The A2IM is a New York City-headquartered not-for-profit trade organization that supports the independent recorded music sector. Citing data from Billboard Magazine, the organization said the independent music label sector accounted for 37.32% of the music industry’s US recorded music sales market in 2016 based on copyright ownership. This makes indie labels “collectively the largest music industry sector,” the A2IM said.
The Recording Academy says it has worked directly with Representatives Linda Sánchez and Ron Estes, and Senators Marsha Blackburn and Catherine Cortez Masto to introduce the bipartisan and bicameral legislation.
Courtesy of the Recording Academy
“As the industry navigates an evolving musical landscape, this moment represents meaningful progress toward protecting creators and sustaining a vibrant music ecosystem.”
Harvey Mason jr, Recording Academy
Harvey Mason jr., CEO, Recording Academy, added: “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.
“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 added: “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.”
Senator Blackburn of Tennessee recently helped strip a provision from President Donald Trump’s economic package that would have prevented states from regulating artificial intelligence for a decade.
The rejection also signals a victory to creative industry groups that have campaigned against what they see as an attempt to shield AI companies from accountability when using creators’ art and music to create AI models.
