Senators Marsha Blackburn (R-TN) and Raphael Warnock (D-GA) introduced a bill last week that attempts to provide tax relief to entertainers.
The Creative Relief and Expensing for Audio and Television Enterprises (CREATE) Act would permit entertainers, singers, and songwriters to write off production expenses by lengthening Internal Revenue Code (IRC) Section 181 for five years.
IRC Section 181 allows entertainers to write off qualified film, theatrical, or television production expenses that can be deducted from their taxes.
In the “One Big Beautiful Bill,” entertainers were allowed to write off recording production expenses. This means that singers and songwriters could deduct $150,000 in recording production expenses from their taxes.
This clause is set to expire at the end of this year.
The CREATE Act would extend the deadline till 2030.
To keep pace with inflation, this bill would implement an annual cost-of-living adjustment in 2027 to make sure the deduction limit keeps up with rising production costs over time.
As a state, Blackburn said Tennessee is home to thousands of performers who should be “able to write off recording production expenses that are critical to their work.”
“The CREATE Act would support creators and keep America’s music industry strong by ensuring they can still count on this tax relief,” she said.
This bill would also seek to help companies that produce films and television shows. The CREATE Act would increase tax deductions for these companies if they shoot their movies and television shows in America rather than other countries.
“Our continued investments in incentivizing domestic production for film, television, and music benefit our culture and our economy,” Warnock said. “That is why I am proud to help lead this bipartisan legislation to support domestic entertainment productions that will continue creating good-paying jobs and unleash economic opportunity.”
The CREATE Act has support from the Recording Industry Association of America (RIAA), the American Association of Independent Music (AAIM), and the Recording Academy.
Dr. Richard James Burgess, the AAIM’s CEO, said his organization is “proud to support this bill,” which he said would help “independent labels support more great artists as they contribute to economic growth.”
Mitch Glazier, the RIAA’s CEO, thanked the senators for introducing this bill. He added that if IRC Section 181 does expire, it will put tens of thousands of jobs at risk and hurt “one of America’s strongest export sectors.”
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Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at [email protected].
Another carve-out for a special interest group?? I say nay.