As per Digital Music News, the legislation enables “artists to deduct up to $150,000 in recording expenses immediately as opposed to amortizing them over multiple years.”
After several false starts the bipartisan bill was passed as part of the Senate-amended version of the ‘One Big Beautiful Bill’ Act.
A2IM President and CEO Richard James Burgess hailed the moment as “a historic victory for independent music creators.”
He added: “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.”
Recording Academy CEO Harvey Mason Jr. said the bill will bring “much-needed support to independent artists and songwriters.”
He added: “As the industry navigates an evolving musical landscape, this moment represents meaningful progress toward protecting creators and sustaining a vibrant music ecosystem.”
NITO President Wayne Forte of Entourage Talent Associates said, "NITO applauds passage of $150,000 first year recording expense tax deductions, something we have long endorsed.”
He added: “Independent musicians are constantly struggling with higher costs and increased competition. This finally offers the relief that's long been available to those in film, television and theater."
Elsewhere in the bill, a provision that would have implemented a 10-year moratorium on state-level AI regulations was blocked by lawmakers.
