U.S. Congressman Jim Cooper (TN-05) and ten colleagues introduced bipartisan legislation to reinstate an important tax method for songwriters and music publishers.
The Songwriters Tax Simplification Reauthorization Act (HR 3343) encourages investment in Nashville songwriters at a time when the music industry faces a paradigm shift.
"Nashville is Music City," Cooper said. "We need more investment into the music industry and to simplify provisions that unnecessarily burden songwriters and publishers."
The bill reinstates a flat, five-year amortization schedule of 20 percent per year, eliminating a requirement that songwriters project royalty income for individual songs. Projecting income for individual songs has become costly and cumbersome in the digital age when royalties are often less than a penny per song.
The bill also encourages investment in entire song catalogues giving investors a far more reasonable method than projecting royalties for individual songs. Songwriters often sell their catalogues to generate retirement income.
The amortization schedule, which originally took effect in 2005, was unintentionally eliminated in 2010.