Bipartisan Music Recording Tax Credit Gets Attention From House Committee
N.E. Ohio lawmakers say "OhioSounds" tax incentive would attract recording industry projects, create jobs
May 10, 2017
 
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State Reps. Kent Smith (D-Euclid) and Sarah LaTourette (R-Chesterland) gave sponsor testimony before the House Ways and Means Committee Tuesday on a bi-partisan effort to create jobs and drive economic growth by making Ohio a destination for the recording industry. The Ohio Sound Recording Investor Tax Credit, also known as OhioSounds, will work to attract more of the almost $7 billion in annual music industry revenue to the state.  


“While other states, like Georgia which just signed their program into law on May 8, are also pushing for recording studio incentives, I believe Ohio should get ahead of the curve in attracting new music recording projects as well as growing our existing studios and musical talent,” said Rep. Smith. “OhioSounds builds upon our proud music history and works to cultivate our state’s musical legacy moving forward.” 


The proposed tax credit will grant a 25-percent tax credit for sound recording production projects in the state. The incentive program will also return 25-percent of music studio construction and recording infrastructure costs to qualifying participants. To qualify, sound production costs must exceed $10,000 per project, with a maximum tax credit of $75,000 per project and a total annual tax credit cap of $1 million for the program. 


“I am pleased to be joint-sponsoring, for the second time with Representative Kent Smith, the Ohio Sound Recording Investor Tax Credit. House Bill 162 has the potential for a huge economic impact to the state and we look forward to any additional hearings that may take place on the bill,” Representative LaTourette stated. 


Smith and LaTourette’s proposal models a similar tax incentive program in Louisiana, which allows current residents to access credits for music production within the state without an upper cap limit. The Ohio program differs in that the credit is not limited to Ohio residents. However, with an upper limit of $75,000, the lawmakers believe the credit is sustainable.  

 
 
 
  
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Cleveland-area Lawmakers Say Ohio Could "amp Up" Economic Growth Through Music Industry

 

State Reps. Kent Smith (D-Euclid) and Sarah LaTourette (R-Bainbridge) today announced a bi-partisan effort to create jobs and drive economic growth by making Ohio a destination for the recording industry. The Ohio Sound Recording Investor Tax Credit, also known as OhioSounds, will work to attract more of the almost $7 billion in annual music industry revenue to the state. 

“Ohio is the birthplace of legendary musicians, unforgettable songs and ‘Rock N’ Roll’,” said Rep. Smith. “OhioSounds honors our proud legacy and works to cultivate a winning model moving forward. Ohio can become a destination for musicians, producers and industry leaders who will create jobs and strengthen our local economies. The OhioSounds tax credit will solidify our commitment to Ohio’s musical heritage and create new music that will provide the soundtrack to our lives.”

“Much like the Ohio film tax credit, this legislation seeks to incentivize investment in Ohio and create jobs in a dynamic industry,” Representative LaTourette stated. “Northeast Ohio has seen quite an investment in response to the film tax credit, with major motion pictures filmed on the streets of Cleveland and throughout our region. Given our history as the birthplace of Rock n’ Roll, it just makes sense to extend that incentive to the music industry and embrace our heritage as musical innovators.”