HITS Act

This bill would change federal tax rules so people and businesses that make sound recordings can choose to deduct some recording costs right away, instead of spreading them out over several years. It creates an option to “expense” certain qualified sound recording costs that would normally be added to a capital account and deducted over time.

• Who is affected: People and companies that create sound recordings.
• What changes: An election to expense certain qualified sound recording costs in the year the money is spent, rather than over multiple years.
• Why it matters: This could reduce taxes in the year of production and help cash flow for music projects.