Include support for music creation in coronavirus legislation

Editor’s note: The following letter was sent Feb. 10 to Charles E. Schumer, U.S. Senate Majority Leader, and Nancy Pelosi, Speaker of the U.S. House of Representatives, from the American Association of Independent Music and dozens of other signatories.

Dear Leader Schumer and Speaker Pelosi:

Last month, when President Biden released the American Rescue Plan, we were thankful and relieved to see his recognition that among small businesses, those in the arts have suffered disproportionately during the Covid-19 pandemic. As leaders of many of the independent record labels that make up the over 700 members of the American Association of Independent Music, we write to urge that as Congress translates the plan into a legislative package, it must act to help musicians to get back to work recording music.

Traditionally, musicians and recording artists can only cobble together an income to support their families by combining money earned touring and performing live with earnings from recording and releasing music. With one of those revenue streams shut off, the ability to record and release music is the only thing keeping many musicians afloat, and for many the availability of capital to launch a new project that may or may not be a commercial success is a significant barrier. But luckily Congress could easily fix this situation. Therefore, we ask that the next relief package include provisions included in the HITS Act, which was introduced last year by Sens. Feinstein (D-CA) and Blackburn (R-TN) and Reps. Sanchez (D-CA) and Estes (R-KS).

The HITS Act would allow recording artists and their record label partners to immediately expense the cost of most indie projects, rather than having to spread out the tax benefit over time. 2020 was a tumultuous year for recorded music, with normal release schedules – often tied to touring, summer festivals and other live performances – completely upended. Enactment of the HITS Act would allow for us to take on more projects, in a Covid-responsible manner, because the tax savings this year would be reinvested in new projects.

The HITS Act is also a matter of fairness across the arts sector, especially artists of color who have been disproportionately affected by the pandemic and lack generational wealth that gives them access to capital. Film, television and live theater production costs already enjoy this tax benefit. Congress has also already acted to target relief to other parts of the music ecosystem including live music venues and mega conglomerate radio stations. Because the benefit in the HITS Act is related to timing, its overall federal budgetary impact is de minimus. This is a reasonable, bipartisan and fiscally responsible measure that represents a needed lifeline for our suffering industry.

Thank you for considering our plea for help.

American Association of Independent Music