[Congressional Record Volume 169, Number 82 (Tuesday, May 16, 2023)]
[Pages S1680-S1681]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself and Mrs. Blackburn):
  S. 1625. A bill to amend the Internal Revenue Code of 1986 to provide 
for an election to expense certain qualified sound recording costs 
otherwise chargeable to capital account; to the Committee on Finance.
  Mrs. FEINSTEIN. Madam President, I rise to speak in support of the 
Help Independent Tracks Succeed (HITS)

[[Page S1681]]

Act, which Senator Blackburn and I introduced today. Representatives 
Linda Sanchez and Ron Estes have introduced companion legislation in 
the House of Representatives.
  The U.S. Tax Code allows film, television, and theater productions to 
fully deduct production expenses in the year they are incurred.
  However, recording artists are not given the same treatment and 
instead must amortize their production expenses over a number of years.
  Moreover, many live performance stages and venues across the country 
closed for months as a result of the pandemic. Independent musicians 
and music makers, including both technicians and creators, suffered 
more than most other professions during this period, and many continue 
to recover.
  Our bill would provide a measure of relief to music creators by 
allowing independent musicians, technicians, and music producers to 
deduct the costs of producing new musical and other sound recordings in 
the year they are incurred, thereby putting them on a level playing 
field with film, television, and theater productions.
  Specifically, the bill would allow qualified sound recording 
producers to deduct 100% of recording production expenses--up to 
$150,000--in the year they are incurred, rather than in later years.
  Because this change would simply accelerate a tax deduction that 
already exists, the bill's cost would be modest.
  In addition, because the deduction would be capped at $150,000 per 
production, our legislation would benefit smaller, independent 
musicians and music producers rather than large companies.
  Music has inspired, comforted, and entertained each of us. Our bill 
would help create parity between musical creators and other creative 
producers and stimulate a sector of the economy that is a fundamental 
part of each of our lives.
  I hope my colleagues will join me in support of this bill.