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Sam Moore holding a microphone

Sam Moore

Photo: C Brandon

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Proposed Legislation Would Benefit Black Artists advocacy-legislation-help-black-artists-black-history-month-2022-hits-act-american-music-fairness

How The Recording Academy Advocates For Legislation That Could Help Generations Of Black Artists

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The American Music Fairness Act and HITS Act have the potential to benefit generations of Black artists — furthering work done by the Recording Academy's Advocacy team and others
Advocacy
Feb 25, 2022 - 11:01 am

Every year during Black History Month, the Recording Academy shines an extra bright light on the contributions and successes of Black artists, past and present. However, the work of Black artists should be championed year-round, and their contributions to popular culture honored through systemic change. As Black History Month comes to a close, the Recording Academy's Advocacy team looks ahead to pending legislation that would benefit Black artists in the long term. 

Among such proposed legislation is the American Music Fairness Act (AMFA), which would close the century-long loophole that has enabled AM/FM radio to play music without paying a royalty for sound recordings. While radio has grown to become a multibillion-dollar business, not a single cent has gone to the legion of artists behind the mic, in the booth, or on guitar —many of whom are Black music makers— involved in the creation of the sound recording.

These artists — from the trailblazing jazz acts of the '20s and '30s, to '50s pioneers of rock and roll, to the countless Motown treasures — have defined American music and culture. Yet they do not receive compensation for their contributions. This injustice has hindered the success and longevity of generations of Black artists, musicians and studio professionals, as well as their heirs.

Radio royalty payments would be of particular necessity to Black artists, who have been disproportionately affected by the COVID-19 pandemic. According to Americans for the Arts, 69 percent of BIPOC artists became unemployed as a result of the pandemic, losing 61 percent of their income. Comparatively, white artists had a 60 percent rate of unemployment and 56 percent loss of income.

The issue of rectifying nonexistent royalty payments has had broad support. Many leading Black artists have come to Washington, D.C., over the years to fight to end this injustice, including the late, great Mary Wilson of the Supremes. Last summer, Dionne Warwick and Sam Moore went to Capitol Hill to introduce the American Music Fairness Act, and major producer Boo Mitchell testified on the issue earlier in February in front of the House Judiciary Committee.

https://twitter.com/GRAMMYAdvocacy/status/1491855495346462721

Last week, GRAMMY-winning producer @BooMitchell901 explained to #Congress why it's long past due for recording artists to get paid for their work. #MusicFairness is needed through the American Music Fairness Act. 👏 Take action: https://t.co/vWVYoioyaL pic.twitter.com/EPsA8cGrTu

— GRAMMY Advocacy (@GRAMMYAdvocacy) February 10, 2022

"This week is the 50th anniversary of Reverend Al Green's legendary Let's Stay Together album, which was produced and recorded and mixed here at Royal Studios by my father, the late Willie Mitchell," Mitchell said at the hearing, noting that the album's title track was a No. 1 hit and added to the National Recording Registry at the Library of Congress. "My father, who passed away in 2010 tragically, never received a penny from radio for his work. And shamefully, neither have the other great Memphis musicians and vocalists who created this work."

Mitchell continued, "Time is running out to fix this injustice for the artists of my dad's generation … These artists aren't looking for free promotion to sell records or to go on tour. They simply want to be compensated for their work."

Following the House Judiciary Committee hearing, children of deceased Black legacy recording artists wrote a letter in support of the American Music Fairness Act. This letter outlined the importance of closing the loophole that allows terrestrial radio to get away with not paying artists for their work, as well as the incorrect nature of the National Association of Broadcasters' (NAB) arguments against the passage of the AMFA.

"For us, to hear the NAB claim that passage of a bill that finally would compensate hundreds if not thousands of black artists would somehow put small minority owned radio stations that couldn't afford $500 a year out of business, thereby devastating low income communities where Black and Latino reside is intolerable," the letter stated.

The letter also argued in favor of the bill’s protections for small, local and community radio stations that earn less than $1.5 million annually. In the letter, the heirs even offered to cover a station’s "$10, $100 or $500 only annual fees" paid through the 501(c)(3) The Soul Arts And Music Foundation, founded by Sam Moore and his wife, Joyce.

If the American Music Fairness Act becomes law, these royalty payments would provide overdue funds to artists across the country and serve as one large step toward ending systemic inequities for artists of color. Ending these disparities is at the core of the Recording Academy's Advocacy efforts.

Similarly, the Help Independent Tracks Succeed (HITS) Act is another effort that will provide much-needed, immediate relief to independent artists while benefiting them in the long term.

The HITS Act would allow artists, musicians, producers, and studio technicians to deduct the entirety of their recording expenses, up to $150,000, on their taxes for the year incurred. The HITS act passed the House in 2021 as part of the Build Back Better Act and is currently being considered in the Senate.

"We have an opportunity where every other business has all these tax laws and things that have been passed," Kevin Liles, co-founder and CEO of 300 Entertainment, CEO of Elektra Music Group, and Recording Academy member, noted of the importance of the HITS Act during a panel discussion about Black-owned small businesses.

Liles continued, "If you think about the small artist, the small producer, the recording studio — if we give them a kind of a cap, $150,000 basis, they could write off 100 percent of the cost as an expense. That little thing alone could keep the light on. It could have somebody else get another piece of equipment."

The HITS Act is another proactive step Congress can take to help the music community recover from the effects of the COVID-19 pandemic. And since the onset of COVID-19, the Recording Academy has mobilized its members to advocate for better protections and provisions for Black artists and Black-owned small businesses in the music ecosystem.

During the Academy's Summer of Advocacy in 2020, thousands of Recording Academy members successfully pushed Congress to provide targeted relief to minority-owned businesses by providing dedicated funding for underserved businesses so that they had direct access to the support and capital they deserved. The HITS Act would be another step towards recovery for Black artists and businesses, and reflects the Academy's advocacy efforts to provide economic relief and equity that encourage creative success in years to come.

Creators & Champions For Creators: These 2022 GRAMMYs Award Show Nominees Are Also Advocates For The Music Industry

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U.S. Capitol

 

Photo: SAUL LOEB/AFP via Getty Images

 
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Music Makers: Watch Capitol Hill This September congress-back-action-september-three-things-music-makers-should-watch-capitol-hill

Congress Is Back In Action In September: 3 Things Music Makers Should Watch For On Capitol Hill

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August is the traditional summer recess month for Congress where they're out of session, but they're back in September for a flurry of legislative action. To that end, here are some key topics to watch out for
Morgan Enos
Advocacy
Sep 1, 2021 - 12:25 pm

For music fans and advocates interested in the legislative side of music policy, it's typically crickets on Capitol Hill every August. This is understandable: August is the traditional summer recess for Congress, when they are out of session.

However, this always tees up a flurry of legislative action for their return in September. This year is no different. And the Recording Academy has been prepping to make sure music makers and music policy are part of the action when lawmakers return to D.C. this month.

Here's a quick rundown of three key initiatives to keep an eye out for as legislative activity fires up again on Capitol Hill:

Momentum For The HITS Act

Congressional Democrats are working on drafting and advancing President Biden's ambitious "American Jobs and Family Plan" that will touch on all facets of the American economy and society. With a lot in the potential mix, the Recording Academy is working to ensure that the HITS (Help Independent Tracks Succeed) Act is firmly on Congress's radar.

For context: The HITS Act is designed to help independent artists get back into the studio to create new music through more favorable tax treatment of sound recordings, similar to the existing tax treatment of movie, television, and live theatrical productions. Unlike their peers in these other creative professions, individual recording artists and record producers are limited in how they can deduct their production costs, putting music creators at a real disadvantage and stifling opportunities to create new music. The bipartisan and bicameral bill has been well-received by lawmakers and is ready to move…if the legislative process allows it.

Read More: Help Independent Tracks Succeed (HITS) Act Reintroduced in the House and Senate

Increasing Funding For The National Endowment For The Arts

Each year, Congress races to pass a funding package before the end of the government's Fiscal Year on September 30. Included in this month's deliberations is an increase in funding for music and the arts via a record level of $201 million for the National Endowment for the Arts (NEA). Earlier this year, the Recording Academy submitted testimony in support of funding the NEA at $201 million, and since then both the House of Representatives and the Senate have taken pivotal steps to fund the agency at this historic level, but work remains to get it to the president's desk.

If Congress can't muster the votes before the September 30 deadline, they will likely pass a stopgap measure to keep the government afloat temporarily, and try again later in the fall.

Read More: National Endowment For The Arts Announces Guidelines For Grant Awards Under American Rescue Plan

The American Music Fairness Act & Advancing Artists' Rights

Earlier this summer Representatives Ted Deutch (D-FL) and Darrell Issa (R-CA) introduced the American Music Fairness Act, a new bill to ensure that artists, performers, producers, and music creators are fairly compensated when their songs are played on terrestrial radio stations. The bill continues to build momentum in D.C., and Congress's return to Capitol Hill marks the perfect time to further gain support for this landmark legislation that would end the century old loophole that has hindered artists' rights.

Because of this antiquated loophole in copyright law, terrestrial (AM/FM) radio stations do not pay artists for the music they play on the radio in the United States. The American Music Fairness Act rights this wrong and ensures all of the artists and studio professionals behind the sound recording can earn fair compensation when their music is played on major, commercial FM radio stations—like , iHeart Radio and other conglomerates that earn billions of dollars in revenue each year. The new legislation also includes carve outs to truly protect local and noncommercial radio stations, while also protecting royalties for songwriters.

Read More: Why The American Music Fairness Act Will Give Music Creators What They Deserve

Want to get involved and tell Congress to support music makers? Visit the Recording Academy's Action Center to contact Congress and to become a Music Advocate.

GRAMMYs
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AMFA Hearing Garners Headlines & Support house-judiciary-committee-hearing-american-music-fairness-act-reactions-headlines

House Judiciary Committee Hearing On American Music Fairness Act Makes Headlines & Garners Support

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The recent House Judiciary Committee hearing on the American Music Fairness Act (AMFA) made headlines across the nation and continued to garner support for the legislation
Montana Miller
Advocacy
Feb 15, 2022 - 7:41 am

A recent House Judiciary Committee hearing on the American Music Fairness Act received supportive press across the nation and continued to collect endorsements for the legislation. What's more, it also marked a rare showing of bipartisanship on Capitol Hill.

On Twitter, one such vote of confidence came from the desk of House Judiciary Democrats:

https://twitter.com/HouseJudiciary/status/1488893225939124225

For decades big corporations that own thousands of radio stations in the U.S. have refused to pay performers when their music plays on AM/FM radio.

It's time for American performers to receive compensation for their work, just like everyone else. pic.twitter.com/N0EnRGmT9W

— House Judiciary Dems (@HouseJudiciary) February 2, 2022

And on the other side of the aisle, Representative Darrel Issa (R-CA) — from the account of the House Judiciary GOP — also weighed in forcefully in support for the legislation.

https://twitter.com/RepJerryNadler/status/1488901686148149250

Music has the power to bring people together. Now, more than ever, as we continue to seek means of staying connected amid a global pandemic, people are turning to music to enjoy and to participate in a sense of social belonging. https://t.co/IbJjbcnR8A

— Rep. Nadler (@RepJerryNadler) February 2, 2022

The hearing also made headlines last week, with articles highlighting the important points articulated by legislators and witnesses alike.

For instance, Roll Call noted that the bipartisan AMFA is pro-artists — not anti-broadcaster. To quote the article: "The legislation from the bipartisan duo of Reps. Ted Deutch and Darrell Issa, dubbed the "American Music Fairness Act," was unveiled this summer. It would set up a tiered fee system that charges smaller and nonprofit radio stations less than the large conglomerates like iHeartMedia, which owns more than 800 stations across the nation."

Therein, Rep. Tom McClintock (R-CA) pushed back on broadcasters' claims that things should stay as is because that's what was decided 100 years ago: "To me, that is not serving the purpose of government, which is to protect the property rights of its citizens," he said. "Just because we've been doing it for 100 years doesn't necessarily make it right."

And as Politico reported, federal leadership agrees — it's time to put an end to this unfair system.

"After years of inaction on the issue, Nadler's decision to hold a hearing on AMFA suggests the committee chair is serious about moving the bill to a markup," it reads. "In planned remarks shared with MT ahead of today's hearing, the House Judiciary chair will say the current royalties system 'deprives U.S. artists of up to $200 million annually" in fees from foreign radio broadcasters alone.'

"'Terrestrial radio is allowed to use, and to profit off of, the creation — the intellectual property — of the artists, for absolutely free,' Nadler will say this morning. 'I am aware of no other instance in which this is allowed, and it is time for this unfairness to end.'"

As The Hill mentioned, promotions don't pay the bills — compensation does. Because, as Estefan said, "These hardworking, middle-class Americans cannot pay the rent for the exposure offered to them by broadcast companies."

And as the Washington Times summarized, AMFA is about the small artists who dedicate their lives to music and still struggle to get by.

Support for the hearing — and the AMFA — also spread across social media from the panel's witnesses, legislators, artists and more.

https://twitter.com/GloriaEstefan/status/1488538956379602947

TOMORROW the @HouseJudiciary Committee is hosting a hearing on the American Music Fairness Act and the fight for #musicfairness! Music creators deserve to be paid when their music is played on the radio. Tell Congress we need them to stand for fairness! https://t.co/pNS2CQqb0a

— Gloria Estefan (@GloriaEstefan) February 1, 2022

https://twitter.com/GloriaEstefan/status/1488878496113963010

For much longer than I’ve been making music, artists have been fighting for #musicfairness. Today, I’m excited to see this fight gaining momentum as @HouseJudiciary hosts a hearing on the American Music Fairness Act. Tell Congress we need the AMFA now! https://t.co/pNS2CQqb0a

— Gloria Estefan (@GloriaEstefan) February 2, 2022

https://twitter.com/BooMitchell901/status/1489183025770418178

Twitter
Today I testified in front of Congress on behalf of the music community and @RecordingAcad members in support of the American Music Fairness Act. We must ensure artists earn royalties on FM/AM radio. Join me and take action: https://t.co/uXXJNb0IPQ pic.twitter.com/a1ykpgGOrD

— Boo Mitchell (@BooMitchell901) February 3, 2022

https://twitter.com/common/status/1488900509234864130

@GloriaEstefan is testifying in front of @HouseJudiciary to tell Congress to stand up and take some action on behalf of music creators. WATCH HERE: https://t.co/5xjHNEwmL0 #musicfairness

— COMMON (@common) February 2, 2022

https://twitter.com/RepJayapal/status/1488988096007839744

Seattle is and remains a bedrock of music.

Today in @HouseJudiciary, we held a hearing on the American Music Fairness Act, which would ensure that artists are compensated and local radio is preserved. pic.twitter.com/JwWHK5xdmO

— Rep. Pramila Jayapal (@RepJayapal) February 2, 2022

https://twitter.com/RepTedDeutch/status/1488886176463343629

Today's @HouseJudiciary hearing on #AmericanMusicFairness Act marks a huge milestone in the fight for #musicfairness.

Music creators deserve to be paid when their music is played on the radio & Congress must listen.

Watch here: https://t.co/ksHDEnPKxt

— Rep. Ted Deutch (@RepTedDeutch) February 2, 2022

https://twitter.com/GRAMMYAdvocacy/status/1490769845281226752

Under the American #MusicFairness Act, artists, performers, vocalists, producers, and other music makers involved in the creation of a sound recording would receive #compensation for their music played on radio stations across the U.S.

Take action: https://t.co/cJwC7zaEqi pic.twitter.com/n96L2IzU5q

— GRAMMY Advocacy (@GRAMMYAdvocacy) February 7, 2022

With these positive pronouncements in mind, let's surge forward with accurate knowledge of the AMFA — with the wind at our backs to make a positive change for all music creators.

Memphis Chapter Gov. Boo Mitchell Testifies As Recording Academy Supporter At House Judiciary Music Hearing

Boo Mitchell
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Boo Mitchell Testifies On Behalf Of Recording Acad memphis-chapter-governor-boo-mitchell-testifies-house-judiciary-recap

Memphis Chapter Gov. Boo Mitchell Testifies As Recording Academy Supporter At House Judiciary Music Hearing

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"I can't think of another industry in America where you are allowed to take someone else's property," Mitchell declared during the virtual meeting — and Gloria Estefan and Dave Pomeroy echoed his sentiment
Morgan Enos
Advocacy
Feb 4, 2022 - 3:25 pm

Speaking during a virtual House Judiciary hearing on Feb. 2, Gloria Estefan extolled the transformative power of music.

"Each of the songs that are precious and meaningful to you was a labor of love for the songwriters, the artists, the musicians and producers that brought it to life," she said. "They poured their own hearts and souls into its creation."

The problem, though? "But when their music is played on the radio," Estefan continued, "Artists don't get paid, only the songwriters."

In the tableau of digital squares, the three-time GRAMMY winner and 12-time nominee wasn't alone in this assessment. Supporting her argument were Nashville musician Dave Pomeroy and Memphis Chapter Governor Lawrence “Boo” Mitchell — who testified with support from the Recording Academy’s Advocacy Team, and spoke from his experience as a producer, engineer, musician, and the co-owner of historic Royal Studios in Memphis, Tennessee.

"It's about the backbone — the people that make the music. I don't get promotion for 'Uptown Funk,'" Mitchell said in a follow-up Q&A, referring to the GRAMMY-winning hit Mark Ronson song — featuring Bruno Mars — that he co-produced. "It's not just about the featured artists, but the blue-collar people that go in to help make these great records."

Harvey Mason jr., the CEO of the Recording Academy, also chimed in with his own statement.

"Today's House Judiciary Committee hearing on the American Music Fairness Act gives lawmakers an opportunity to hear directly from music creators on the antiquated compensation practices by radio stations for their performances," he said.

"The work of artists like Boo Mitchell, Gloria Estefan and Dave Pomeroy should not be devalued to increase the bottom line of big radio conglomerates," Mason continued. "It's time for terrestrial radio to compensate creators fairly. Our hope is that listening to these musicians today will spur Congress toward action."

Read on for Mitchell's entire testimony exhorting for the passage of the American Music Fairness Act (AMFA), click here to access the recorded hearing, and click here to take action to support the AMFA.

Dear Chairman Nadler, Ranking Member Jordan, and members of the committee,

My name is Lawrence "Boo" Mitchell. I am a GRAMMY Award-winning Recording Engineer, Producer, Composer, Musician, and the co-owner of Royal Studios in Memphis, Tennessee. I am also a member of the Board of Governors of the Memphis Chapter of the Recording Academy. Best known for the GRAMMY Awards, the Recording Academy represents thousands of songwriters, performers, musicians, producers, and engineers across the country. Thank you for giving me the opportunity to testify today.

In 2014, I was visited here at Royal Studios by songwriters and producers Mark Ronson and Jeff Bhasker. After visiting the studio, Mark told me that he wanted to record his album here, including a track with Bruno Mars. Over the next several weeks, Mark, Bruno, Jeff, myself, and some of the finest musical talents from Memphis and around the country teamed up to record the song "Uptown Funk." "Uptown Funk" was released in November of 2014, and immediately charted on Billboard. Eventually, it became the number one song of the year. And then it became the number one song of the decade. "Uptown Funk" is currently fourth on Billboard's All-Time Hot 100 charts. In 2016, it won the GRAMMY Award for Record of the Year, the first record made in Memphis to win this honor.

"Uptown Funk" was also a huge hit on the radio. In 2015, "Uptown Funk" finished the year as the number one song on the mainstream Top 40 radio chart. To this day, it is one of the twenty most played songs of all time on mainstream top 40 radio in America.

But despite this historic airplay on the radio, no one involved in the recording of "Uptown Funk" has ever been paid by the radio broadcasters who used and profited from their work.

Because of a loophole in the copyright law, radio broadcasters are allowed to play sound recordings without asking for permission from the artists who created it and without paying them any compensation. They can play records on the air for free, and they use our music to sell billions of dollars worth of advertising. I can't think of another industry in America where you are allowed to take someone else's property and use it without permission or compensation.

But this story gets crazier. "Uptown Funk" wasn't just a big radio hit in the United States, it was a hit around the world. The track reached number one in Australia, Canada, Israel, New Zealand, and the U.K. In every single one of those countries, the broadcasters actually did pay royalties for playing the record. But I still didn't get paid.

You see, almost every other country in the world recognizes a public performance right for sound recordings on the radio, and they require broadcasters to pay royalties to artists and rights holders. But because we don't recognize a performance right here in the United States, foreign countries won't pay American artists the royalties we are due until the United States fixes the law and reciprocates. So, Mark Ronson, who was born in London and still lives there, can collect royalties from all the airplay that "Uptown Funk" has received around the world. But none of the American artists who collaborated with him can. Every year, American artists are losing hundreds of millions of dollars in international royalties that are owed to them.

More than two dozen individuals are credited on the recording of "Uptown Funk." While performance royalties from radio may not make a huge difference in the life of a super star like Bruno Mars, it would make all the difference in the world to me and to the other musicians, vocalists, and studio professionals that created this iconic track.

Fortunately, there is a reasonable, common-sense solution to fix this injustice. The American Music Fairness Act is a bipartisan bill introduced by Representatives Ted Deutch and Darrell Issa. This bill would establish a performance right for sound recordings played on AM/FM radio stations. Under the bill, artists, performers, vocalists, producers, and other music makers involved in the creation of a sound recording would receive fair market compensation for their music played on radio stations across the U.S., just like they currently receive on digital radio services.

Importantly, the bill also safeguards the royalties received by songwriters for airplay on the radio, and it also contains key protections for small broadcasters to ensure that local and community radio stations can continue to thrive.

"Uptown Funk" is just one illustration of how this injustice has hurt recording artists throughout history. This year happens to be the fiftieth anniversary of Al Green's legendary album Let's Stay Together, which was recorded at Royal Studios and produced, recorded, and mixed by my dad, Willie Mitchell. The title track was a number one hit and has been added to the National Recording Registry at the Library of Congress, but my dad, who passed away in 2010, never received a penny from radio for his work.

Fast-forward to today and we are still making hits in Memphis that you can hear on the radio. It was just about one year ago that I received another phone call, this time from Bruno Mars. He was working on a new project and wanted to add some of those grimy Memphis horns. Those horns can be heard on the new album Bruno recorded with Anderson .Paak under the name Silk Sonic. Their current single "Smokin Out The Window" is still on the charts and still on the radio, but the horn players I recorded with -- Kameron Whalum, Marc Franklin, Kirk Smothers, and Lannie McMillan – haven't received any compensation from broadcasters.

Some things have not changed from the time my dad opened Royal Studios to today. We still produce and record great music. And AM/FM radio stations still pay no royalties to performers. Time is running out to fix this injustice for the artists of my dad's generation, like the Rev. Al Green and the Rev. Charles Hodges. These artists aren't looking for free promotion to sell records or go on tour, they just want the compensation that they deserve but have long been denied. And a new generation is struggling to see if they can even make it in the music business.

The ongoing pandemic continues to disrupt touring and the live music sector, which makes it all the more important that artists are able to fully realize the value of their recorded music in order to make a living. The lost royalties from radio could make the difference in whether a musician can stay focused on their career or has to take a second or third job to get by. 

Royal Studios is one of the oldest recording studios in the world, but we've struggled during these uncertain times as well. If we had been able to collect my dad's royalties from radio over the past fifty years, my small business and my family would be in better shape today.

Those who create music answer to a unique calling. It is not just a profession you choose, it's one that also chooses you. But today I'm calling on Congress to help us keep the music playing by ensuring that American Music Creators are fully compensated the way other Music Creators around the world are, whenever their work is used or exploited.

Please pass the American Music Fairness Act. Thank you.

The House Small Business Committee Puts A Spotlight On The Creative Economy: Here's What We Learned

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Photo: SAUL LOEB/AFP via Getty Images

 
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HITS Act Clears U.S. House Of Representatives house-passes-build-back-better-act-hits-act-included

House Passes Build Back Better Act With The HITS Act Included

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Included as part of the Build Back Better Act, the Recording Academy backed HITS Act passed the House of Representatives 220-213 and awaits consideration in the Senate
Advocacy
Nov 19, 2021 - 5:10 pm

After months of deliberations and negotiations, House Democrats passed the Build Back Better Act—a $1.7 trillion package of economic, environmental, and social programs—by a vote of 220-213 on Friday, November 19. And that’s good news for music creators and fans across the United States.

Included amidst the hundreds of programs and priorities is the Help Independent Tracks Succeed (HITS) Act, a bill the Recording Academy helped craft to aid and support artists and producers struggling with the ongoing economic fallout of the COVID-19 pandemic. First introduced in 2020 by Reps. Linda Sanchez (D-Calif.) and Ron Estes (R-Kansas) and Senators Diane Feinstein (D-Calif.) and Marsha Blackburn (R-Tenn.), the HITS Act amends the U.S. tax code to incentivize the production of new sound recordings. In addition to the Recording Academy, the bill has been endorsed by dozens of music stakeholder groups, including the American Association of Independent Music (A2IM).

Passage of the HITS Act is no small feat and relied on intensive advocacy efforts and initiatives orchestrated by the Recording Academy and its members. Most recently, the HITS Act was a top priority during the Academy’s Behind the Record Advocacy day. Upon the House vote, Recording Academy CEO Harvey Mason jr., stated:

“The passage of the Build Back Better Act in the House, inclusive of the HITS Act, is an important step forward for music creators eager to create new recordings and revitalize the music economy following more than a year and a half of uncertainty.  We truly thank all who supported this meaningful provision in the House, and we now urge the Senate to act quickly to ensure that the HITS Act becomes law."

The HITS Act allows artists and record producers to deduct 100 percent of sound recording production expenses—up to $150,000—in the year they are incurred, rather than amortized over the life of the recording, typically 3-4 years. The bill also aligns the tax code for music production with similar provisions for other creative industries. Currently, qualified film, live theatrical, and television production companies enjoy the ability to deduct 100 percent of their production expenses in the year such expenses are incurred.

As part of the Build Back Better Act, the HITS Act now heads to the Senate for consideration under the Upper Chamber’s reconciliation rules—meaning it only needs a simple majority of 50 votes to reach the president’s desk. Senate leadership is optimistic it can secure the needed votes in the coming weeks, although a firm timeline has yet to be established.

But with House passage out of the way, the HITS Act is a step closer to bringing much needed relief to American artists and producers.

Music Fairness Awareness Month: A November-Long Campaign To Spread Awareness Of Radio Royalty Fairness

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Some of the content on this site expresses viewpoints and opinions that are not those of the Recording Academy and its Affiliates. Responsibility for the accuracy of information provided in stories not written by or specifically prepared for the Academy and its Affiliates lies with the story's original source or writer. Content on this site does not reflect an endorsement or recommendation of any artist or music by the Recording Academy and its Affiliates.