U.S. Senators Marsha Blackburn (R-Tenn.) and Reverend Raphael Warnock (D-Ga.) have introduced the bipartisan Creative Relief and Expensing for Audio and Television Enterprises (CREATE) Act. The legislation aims to extend tax relief for entertainers, singers, and songwriters by prolonging Internal Revenue Code (IRC) Section 181 for an additional five years.
“Thousands of singers and songwriters call Tennessee home, and they should be able to write off recording production expenses that are critical to their work,” said Senator Blackburn. “The CREATE Act would support creators and keep America’s music industry strong by ensuring they can still count on this tax relief.”
Senator Warnock emphasized Georgia’s growing role in entertainment: “From productions like The Color Purple, to The Hunger Games, and the Marvel Cinematic Universe, Georgia has become a national leader in the arts and entertainment industry. Our continued investments in incentivizing domestic production for film, television, and music benefit our culture and our economy. 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.”
As part of previous legislative efforts, Senator Blackburn worked to include recording production expenses under IRC Section 181. This provision currently allows artists to deduct up to $150,000 in recording production costs but is set to expire at the end of 2025. If not extended, artists could face increased financial strain.
The CREATE Act proposes extending the expiration date of IRC Section 181 from 2025 to 2030. It also includes annual cost-of-living adjustments starting in 2027 so that deduction limits reflect rising production costs over time. Additionally, it aims to make it more financially feasible for productions to remain in the United States rather than relocating abroad.
The bill has received endorsements from several industry organizations including the Recording Industry Association of America (RIAA), American Association of Independent Music (A2IM), and the Recording Academy.
“RIAA applauds Senators Blackburn and Warnock and Representatives Malliotakis and Chu for their leadership strengthening and extending Internal Revenue Code Section 181 including the newly enacted HITS Act, which will boost America’s music economy by allowing production expenses to be deducted when they are incurred. Without Congressional action, the HITS Act and all of Section 181 will expire this year, unnecessarily putting tens of thousands creative community jobs at risk and dragging down one of America’s strongest export sectors,” said Mitch Glazier, Chairman & CEO of the Recording Industry Association of America.
“With sound recording production finally eligible for the Section 181 domestic production incentive, A2IM is proud to support this bill, which would help independent labels support more great artists as they contribute to economic growth. America leads the globe in creating film, television, theater and music that entertains and inspires the rest the world. Congress can make sure we have every tool to continue this important work by extending this common sense provision,” said Dr. Richard James Burgess, President and CEO of American Association of Independent Music.
“The CREATE Act will protect and extend the important victory we achieved this year for independent music through the HITS Act. The Recording Academy appreciates Senators Blackburn and Warnock and Reps. Chu and Malliotakis for their commitment to the creative community and we look forward to working with them to advance this legislation,” said Todd Dupler, Chief Advocacy & Public Policy Officer of the Recording Academy.
