D.I.Y.

Musicians, Labels Save Money Using Tax Credits To Finance Recordings

moneyBy Bobby Owsinski of Music 3.0.

Increasingly, music producers are looking for State tax credits before embarking on a project. While this has been a big part of television and movie production for some time, music is now seeing the light in how cost-effective it could be to go somewhere besides Los Angeles and New York to make a new record. And since it's easier than ever to record just about anywhere, the tax credits now loom large for many a budget-minded producer.

Louisiana has been one of the leaders in music tax credits for some time, but recently Texas has jumped into the game. Tennessee fought runaway production by following with a big tax credit, and New York producers are currently lobbying legislators to pass a bill that will provide around $60 million in tax breaks each year to studios, artists, record companies and others involved in music creation.

That's not all, Georgia gives tax credits for up to 30% of the cost of making an album, and New Jersey recently gave Sony Music some $1.6 million in tax breaks to move 50 jobs there from New York City. And of course, Canada has long been a huge benefactor for the arts.

Most producers aren't aware of the current tax credit possibilities and most States are not very good at getting the word out, so you have to do some digging yourself. The first thing to do is look online to see if there's an entertainment or economic development commission like this one in Louisiana. There are a number of forms to fill out and the granting of the tax credits can take some time, so remember to plan as far in advance as you can.

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2 Comments

  1. Sorry there is nothing about albums on Georgia’s site:
    “Film, television and digital entertainment tax credits of up to 30 percent create significant cost savings for companies producing feature films, television series, music videos and commercials, as well as interactive games and animation.
    Georgia’s Entertainment Industry Investment Act provides a 20 percent tax credit for companies that spend $500,000 or more on production and post-production in Georgia, either in a single production or on multiple projects.
    The state grants an additional 10 percent tax credit if the finished project includes a promotional logo provided by the state. If a company has little or no Georgia tax liability, it can transfer or sell its tax credits.”

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