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The Recording Academy is celebrating a “major global victory” for music as the PEACE For Music Diplomacy Act passes through the House and the Senate as part of the 2023 National Defense Authorization Act (NDAA).
The Senate voted Thursday (Dec. 15) to approve the massive defense bill, which includes The PEACE (Promoting Peace, Education, and Cultural Exchange) Act. This follows the House’s bipartisan passage of the paperwork last week.
The Recording Academy has thrown its advocacy efforts behind the bill since it was first introduced January in the House by 2022 Grammys on the Hill honorees Rep. Michael McCaul and former Rep. Ted Deutch.
The act, it has been said, would use music and music-related global exchange programs as a tool to build cross-cultural understanding.
Specifically, the Recording Academy notes, the bill leverages partnerships with the private sector when designing and implementing its music-related exchange programs, and authorizes music-related exchanges that “advance peace abroad.”
At October’s District Advocate Day, almost 2,000 Recording Academy members met with Congressional reps to discuss pending legislation affecting creators, including the PEACE Through Music Diplomacy Act.
The behind-the-scenes advocacy work and passage of the bipartisan $858 billion defense bill is a reminder of “the power of music and its capacity to increase understanding between diverse cultures and people around the world,” comments Recording Academy CEO Harvey Mason jr.
The legislation is now on President Joe Biden’s desk awaiting his signature.
“The Recording Academy is grateful to Rep. McCaul, former Rep. Deutch, and Senators Leahy and Tillis for their support of this important legislation, and we look forward to championing future cross-sector partnerships that will allow music creators to promote peace across the globe.”
Read more here on the NDAA.
Advocates representing a wide cross-section of the music industry are again urging Congress to pass the Help Independent Tracks Succeed (HITS) Act, the long-simmering legislation that would provide an extra tax break to musicians, technicians and producers for recording sessions.
“Prior to the conclusion of the 117th Congress, the American music community calls on you to support American music creation that is still reeling from the pandemic by passing into law the bipartisan and bicameral Help Independent Tracks Succeed (HITS) Act,” reads a Nov. 15 letter sent to Congressional leadership, co-signed by 23 groups across the business.
The Recording Academy, which made the bill a major focus of its Grammys on the Hill event in April as well as its annual District Advocate Day in October, continues to lead the charge. During the latter event, held on Oct. 6, approximately 2,000 Academy members participated in lobbying for the HITS Act and other music industry priorities at nearly 200 U.S. congressional offices in Washington, D.C.
“Our hope is that we can get it done here before the 117th comes to a close because we have a lot of bipartisan support, bicameral support [in the] House and Senate,” says Recording Academy CEO Harvey Mason jr. “I really feel like this is something we should be able to get done and we’re hoping we can get done in the next few weeks.”
The HITS Act would allow musicians, technicians and producers to deduct 100% of recording expenses up to $150,000 on their taxes in the year they’re incurred. That’s a change from the current law, which requires music creators to amortize those expenses over the economic life of a sound recording, a period that usually ranges between three and four years.
The bipartisan bill was first introduced in the House on July 31, 2020 (followed by a companion bill in the Senate on Dec. 3, 2020), though it failed to pass as part of the two pandemic relief packages or as part of the $3.5 billion budget reconciliation package known as Build Back Better, which was ultimately halved and renamed the Inflation Reduction Act of 2022 before being signed into law in August. Now, with only a month to go before the changeover to a new, split Congress — Democrats will retain control of the Senate while Republicans will control the House of Representatives — advocates are hoping the bill can finally, successfully make it through the gauntlet as part of a must pass bill during the last few weeks of the year.
“[During] the lame duck period with these must pass bills, if there’s any kind of tax language in there or any kind of economic language in there that ties in with this, we’re really hopeful it will get in this time around,” says Richard James Burgess, president and CEO of the American Association of Independent Music (A2IM), which has long served as a key advocate for the legislation.
In the entertainment realm, music production is an outlier in terms of taxation; film, TV and live theater productions already enjoy a 100% first-year deduction. The HITS Act would simply apply the same standard to music, Burgess says, while also encouraging future music creation: “I think if anybody needs it, it’s musicians that need it really badly. It affects independent musicians and independent artists and independent labels probably more than anybody else because they have less bandwidth financially. The idea of getting $150,000 per project [that can be] written off against your taxes in the year that you incurred it, could really make a difference between being able to make another record next year or not.”
Burgess adds that the bill won’t just affect musicians and producers but trickle down to other parts of the industry and the greater economy. “Every artist that makes a record, that has a knock on effect to many, many other musicians and ancillary workers in the music industry,” he says. “Getting these kinds of tax benefits will make a difference across the board.”
While Burgess and Mason jr. were both relatively confident HITS could make it through the next Congress given the bill’s bipartisan support, they’ve clearly grown impatient on behalf of creators, many of whom lost income during the early stages of the pandemic. After more than two years of disappointment, Mason jr. puts it in stark terms: “Yes, it could get passed next year, but…I don’t think we should continue to have it laid off and cut out of bills. This is something that’s important for us coming out of COVID. We’ve seen this community suffer enough.”
You can read the full Nov. 15 letter below.
Dear Speaker Pelosi, Leader Schumer, Leader McCarthy, and Leader McConnell: The 117th Congress has witnessed significant bipartisan and bicameral accomplishments that have benefitted American workers, families, and consumers, and levelled the playing field so some important domestic industries can grow. Prior to the conclusion of the 117th Congress, the American music community calls on you to support American music creation that is still reeling from the pandemic by passing into law the bipartisan and bicameral Help Independent Tracks Succeed (HITS) Act (H.R. 1945/ S. 752).
The HITS Act is a low-cost and commonsense modification to existing U.S. tax law that will incentivize the production of new sound recordings by allowing qualified productions to deduct 100% of their costs upfront. With an annual deduction limit of $150,000, the bill is designed and tailored to specifically incentivize independent creators and labels to produce new music, sparking important creative investments in countless music small businesses across the country. This targeted approach makes the HITS Act a fiscally responsible investment in the American creative economy.
The HITS Act also brings much-needed parity to the tax code for all creative industries. Currently, under Sec. 181 of the Internal Revenue Code, qualified film, television, and live theatrical productions may elect to fully deduct new production costs in the year they are incurred. Music production, which occurs in every state and congressional district, deserves the same treatment. Instead of being able to fully deduct production expenses in the year they occur, independent recording artists must currently amortize production expenses for tax purposes over the full economic life of a sound recording. For small creators, this timing difference slows down their reinvestment in new projects that can fuel growth. The HITS Act harmonizes the tax code and ensures that all the major creative industries are treated similarly.
As you consider end-of-year legislation, the music community strongly urges you to pass the HITS Act. It represents exactly the type of bipartisan, bicameral, and non-controversial economic investment that Congress should be proud to support. Passage of H.R. 1945/S. 752 is a smart and simple step that will make a lasting difference for countless independent music creators and music small businesses.
On behalf of the hundreds of thousands of music makers and music businesses across the country, thank you for your consideration.
Signed,
American Association of Independent Music
Artists Rights Alliance
ASCAP
Black Music Action Coalition
Broadcast Music Inc.
Christian Music Trade Association
Digital Media Association
Future of Music
Global Music Rights
Gospel Music Association
Music Artists Coalition
Nashville Songwriters Association International
National Independent Talent Organization
National Independent Venue Association
National Music Publishers Association
Recording Academy
Recording Industry Association of America
SAG-AFTRA
SESAC
The Society of Composers and Lyricists
Songwriters Guild of America
Songwriters of North America
SoundExchange
CC Chairman Ron Wyden, Senate Finance Committee
Ranking Member Mike Crapo, Senate Finance Committee
Chairman Richard Neal, House Ways and Means Committee
Ranking Member Kevin Brady, House Ways and Means Committee
Emboldened House Democrats ushered in a new generation of leaders on Wednesday (Nov. 30) with Rep. Hakeem Jeffries elected to be the first Black American to head a major political party in Congress as long-serving Speaker Nancy Pelosi and her team step aside next year.
Showing rare party unity after their midterm election losses, the House Democrats moved seamlessly from one history-making leader to another, choosing the 52-year-old New Yorker, who has vowed to “get things done,” even after Republicans won control of the chamber. The closed-door vote was unanimous, by acclamation.
“It’s a solemn responsibility that we are all inheriting,” Jeffries told reporters on the eve of the party meeting. “And the best thing that we can do as a result of the seriousness and solemnity of the moment is lean in hard and do the best damn job that we can for the people.”
Many in the music business are likely celebrating Jeffries’ election today. The Congressman, who has served as the U.S. representative for New York’s 8th Congressional District since 2013, has been a longtime champion of music creators. Among other efforts, he co-sponsored the Music Modernization Act, the most important copyright law passed in decades, as well as the Copyright Alternative in Small-Claims Enforcement Act of 2020, a.k.a. the CASE Act, which streamlined copyright disputes by creating a small claims tribunal within the U.S. Copyright Office to adjudicate small claims infringement cases.
A noted hip-hop fan who once gave The Notorious B.I.G. a shout-out from the House floor, in 2018 Jeffries hosted the sixth annual “Hip-Hop on the Hill” political fundraiser. He was also an honoree at the Recording Academy’s GRAMMYs on the Hill in 2019, an annual event that honors congressional leaders and music creators who fight for creators’ rights. This September, Jeffries was honored by the RIAA as well, along with hip-hop pioneers Grandmaster Flash and MC Lyte, at RIAA Honors 2022: Hip-Hop, where he received the policy maker of the year award. (Billboard sponsored this event.)
This creator-friendly mindset may have stemmed in part from Jeffries’ days as a lawyer prior to entering politics. During that period, Jeffries worked on several copyright cases, including representing Lauryn Hill in a case brought by some of her collaborators. In a previous statement, National Music Publishers Association (NMPA) president David Israelite said that Jeffries “has a deep understanding of copyright law” and “may know the subject better than anyone else in Congress.”
In a statement sent to Billboard, Recording Academy CEO Harvey Mason jr. applauded Jeffries’ election: “Since his first year in Congress in 2014, Hakeem has been a dynamic leader in shaping music policy and fighting for legislation that benefits and protects music creators. From signing on as a lead cosponsor of the Music Modernization Act in 2018 and the CASE Act in 2020, to being celebrated as a GRAMMYs On The Hill Honoree in 2019, he’s been a key ally to the music community and instrumental in achieving bipartisan support for music people. We’re thrilled for him to take on this new role, and we look forward to seeing how this will impact the important issues facing our ecosystem of music creators.”
It’s rare that a party that lost the midterm elections would so easily regroup and stands in stark contrast with the upheaval among Republicans, who are struggling to unite around GOP leader Kevin McCarthy as the new House speaker as they prepare to take control when the new Congress convenes in January.
Wednesday’s internal Democratic caucus votes of Jeffries and the other top leaders came without challengers. Cheers broke out after the elections.
The trio led by Jeffries, who will become the Democratic minority leader in the new Congress, includes 59-year-old Rep. Katherine Clark of Massachusetts as the Democratic whip and 43-year-old Rep. Pete Aguilar of California as caucus chairman. The new team of Democratic leaders is expected to slide into the slots held by Pelosi and her top lieutenants — Majority Leader Steny Hoyer of Maryland and Democratic Whip James Clyburn of South Carolina — as the 80-something leaders make way for the next generation.
But in many ways, the trio has been transitioning in plain sight, as one aide put it — Jeffries, Clark and Aguilar working with Pelosi’s nod these past several years in lower-rung leadership roles as the first woman to have the speaker’s gavel prepared to step down. Pelosi, of California, has led the House Democrats for the past 20 years, and colleagues late Tuesday granted her the honorific title of “speaker emerita.”
“It an important moment for the caucus — that there’s a new generation of leadership,” said Rep. Chris Pappas, D-N.H., ahead of voting.
Democratic Rep. Cori Bush of Missouri called the leadership election “historic” and a “time for change.”
While Democrats will be relegated to the House minority in the new year for the 118th Congress, they will have a certain amount of leverage because the Republican majority is expected to be so slim and McCarthy’s hold on his party fragile.
The House’s two new potential leaders, Jeffries and McCarthy, are of the same generation but have almost no real relationship to speak of — in fact the Democrat is known for leveling political barbs at the Republican from afar, particularly over the GOP’s embrace of former President Donald Trump. Jeffries served as a House manager during Trump’s first impeachment.
“We’re still working through the implications of Trumpism,” Jeffries said, “and what it has meant, as a very destabilizing force for American democracy.”
Jeffries said he hopes to find “common ground when possible” with Republicans but will “oppose their extremism when we must.”
On the other side of the Capitol, Jeffries will have a partner in Senate Majority Leader Chuck Schumer as two New Yorkers are poised to helm the Democratic leadership in Congress. They live about a mile (1.6 kilometers) apart in Brooklyn.
“There are going to be a group, in my judgment, of mainstream Republicans who are not going to want to go in the MAGA direction, and Hakeem’s the ideal type guy to work with them,” Schumer said in an interview, referencing Trump’s “Make America Great Again” slogan.
Jeffries has sometimes been met with skepticism from party progressives, viewed as a more centrist figure among House Democrats.
But Rep. Rashida Tlaib, D-Mich., a progressive and part of the “squad” of liberal lawmakers, said she has been heartened by the way Jeffries and his team are reaching out, even though they face no challengers.
“There’s a genuine sense that he wants to develop relationships and working partnerships with many of us,” she said.
Clark, in the No. 2 spot, is seen as a coalition builder on the leadership team, while Aguilar, as the third-ranking leader, is known as a behind-the-scenes conduit to centrists and even Republicans.
Clyburn, now the highest-ranking Black American in Congress, is seeking to become the assistant democratic leader, keeping a seat at the leadership table and helping the new generation to transition.
But Clyburn faces an unexpected challenge from Rep. David Cicilline, D-R.I., who is openly gay and argued Wednesday in a letter to colleagues that House Democrats should “fully respect the diversity of our caucus and the American people by including an LGBTQ+ member at the leadership table.”
The election for the assistant leader post and several others is expected to be held Thursday.
Jeffries’ ascent comes as a milestone for Black Americans, the Capitol built with the labor of enslaved people and its dome later expanded during Abraham Lincoln’s presidency as a symbol the nation would stand during the Civil War.
His Brooklyn-area district was once represented by Shirley Chisholm, the first Black woman elected to Congress, who was born on the same day as his election, Nov. 30, in 1924.
“The thing about Pete, Katherine and myself is that we embrace what the House represents,” Jeffries said, calling it “the institution closest to the people.”
While the House Democrats are often a big, diverse, “noisy family,” he said, “it’s a good thing.” He said, “At the end of the day, we’re always committed to finding the highest common denominator in order to get big things done for everyday Americans.”
There’s some good news for the music business in Washington DC: House Democrats seem to have found their next caucus chair in Rep. Hakeem Jeffries, a champion of music creators who since 2013 has served as the U.S. representative for New York’s 8th congressional district. Jeffries, who represents parts of Brooklyn and Queens, co-sponsored the Music Modernization Act, the most important copyright law passed in decades, as well as the Copyright Alternative in Small-Claims Enforcement Act of 2020, a.k.a. the CASE Act. He’s also known as a big hip-hop fan, who once gave The Notorious B.I.G. a shout-out from the House floor on the 20th anniversary of his death.
A formal vote has not yet been taken. But the party seems to be coalescing around Jeffries, who was endorsed as a successor by outgoing Speaker Nancy Pelosi (D-Calif.). If chosen, Jeffries would become the first Black leader of a Congressional caucus, as well as the presumptive Speaker if the Democrats were to win back the House majority. And although it’s hard to say if serious copyright legislation will come in front of Congress, having a supporter of creators and copyright in such an important role could only help rightsholders.
“Mr. Jeffries has been a steadfast supporter of songwriters, and as an original cosponsor of both the Songwriter Equity Act and the Music Modernization Act, he has fought for fairness for creators throughout his career,” said NMPA president and CEO David Israelite. “His leadership in this powerful role will bode well for the future of songwriters.”
Jeffries was honored by the RIAA in September, along with hip-hop pioneers Grandmaster Flash and MC Lyte. (Billboard sponsored this event.)
“It’s hard to think of two potential leaders with more experience working in the trenches of music policy and shaping bipartisan consensus for the digital streaming era than Kevin McCarthy and Hakeem Jeffries,” said Mitch Glazier, chairman and CEO of the RIAA. “A House led by Speaker Kevin McCarthy and Democratic Leader Hakeem Jeffries would feature a dynamic duo for the music community.”
Before entering politics in 2007, Jeffries worked as a lawyer, first in New York for Paul, Weiss, Rifkind, Wharton & Garrison – where he worked down the hall from NMPA general counsel Danielle Aguirre – then for Viacom. At Paul Weiss, he worked on some copyright cases, and he represented Lauryn Hill in a case brought by some of her collaborators. “He has a deep understanding of copyright law,” Israelite said. “He may know the subject better than anyone else in Congress.”
Jeffries may also be one of the bigger music fans in Congress. Besides giving Biggie a shoutout, he’s written about his favorite female rappers, and hosted an annual “Hip-Hop on the Hill” political fundraiser. “Watching hip-hop develop — with Grandmaster Flash, and then Run-DMC, and then the artists of the ‘80s and ‘90s — has been a fantastic journey,” he told Billboard in a 2018 interview about his history as a fan of the genre. “What’s been most compelling to me is how hip-hop has been a vehicle to tell the story of urban America and black America in such an artistic, poetic, and authentic fashion.”
Jeffries is involved with a number of issues, of course. He advocates police reform, and he co-sponsored the Formerly Incarcerated Reenter Society Transformed Safely Transitioning Every Person Act, a.k.a. the First Step Act, which reformed prison and sentencing laws. He voted to impeach Pres. Donald Trump, but he’s also known for working well with Republicans, including former Rep. Doug Collins (R-Ga.), with whom he co-sponsored the Music Modernization Act, as well as the First Step Act. (The two also put together a summer playlist.) Jeffries has also been a leading Democratic fund-raiser.
Some of this has put Jeffries at odds with some of his more radical colleagues, including Rep. Alexandria Ocasio-Cortez (D-N.Y.). Jeffries is a member of the Congressional Progressive Caucus, but his politics are more centrist, as well as more pragmatic. His ability to compromise could be important, since he will have to work with both the Republican House majority as well as the progressive members of his own party. He recently told CNN that “while we can have some noisy conversations at times about how we can make progress for the American people, what we have seen is that under the leadership of Speaker Pelosi, Steny Hoyer, Jim Clyburn, we have constantly been able to come together.”