New bill could save labels $400M in annual taxes.

The record industry stands to reap the benefits of the end-of-session corporate tax-cut bill that was passed by Congress on Monday (Oct. 11).

Under the legislation, "The American Jobs Creation Act," H.R. 4520, Congress cut the tax rate for "domestic production" businesses from 35% to 32%.

Annual tax savings for the U.S. record industry -- which had income last year of about $11.8 billion, according to the RIAA -- could be about $400 million.

The recording industry is specifically mentioned in the legislative summary of the bill written by the Joint Committee on Taxation. The provision "provides a reduced corporate tax rate for the portion of taxable income attributable to: (1) domestic production of certain property, including tangible personal property, computer software, films and videotape (other than certain sexually explicit productions); and sound recordings."

An RIAA spokesman says, "We're always delighted when the costs of doing business are lower. That's good news for the industry and music fans."

The 690-page bill is now on its way to the White House for approval.