HITS Act
Sponsored By: Senator Blackburn, Marsha [R-TN]
Introduced
Summary
Lets producers immediately expense costs for qualified sound recording productions. The bill adds a $150,000 cap per production or per taxable year and makes these recordings eligible for bonus depreciation when first released or broadcast.
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- Record producers and record labels can elect to treat costs for qualifying U.S. sound recordings as current business expenses under section 181. This speeds up deductions for creators who meet the definition of a qualified sound recording production.
- The election cannot apply to the portion of costs that exceed $150,000 for any single qualified sound recording production or for the cumulative cost of all such productions in the taxable year. This creates a clear dollar limit on immediate expensing.
- It adds bonus depreciation rules for qualifying sound recordings and says a production is "placed in service" at initial release or broadcast. It also defines "qualified sound recording production" as a sound recording produced and recorded in the United States under Title 17.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Tax break for sound recording producers
If enacted, producers of U.S.-made sound recordings could elect to expense qualifying production costs under section 181. The election would be limited to $150,000 per production and $150,000 total per taxable year. If you make the election, you could not claim other deductions or amortization for those same costs. Eligible recordings that meet section 181 conditions could also get first-year bonus depreciation and are treated as placed in service at initial release or broadcast. The changes would apply to productions that start in taxable years ending after the bill's enactment.
Sponsors & CoSponsors
Sponsor
Blackburn, Marsha [R-TN]
TN • R
Cosponsors
Sen. Cortez Masto, Catherine [D-NV]
NV • D
Sponsored 1/22/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov