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.