Summary

Adds a new category of "qualified sound recording production" to the Internal Revenue Code so creators and producers of U.S.-made sound recordings can elect to deduct production costs immediately under section 181. The change limits the deductible amount to $150,000 per production (and per taxable year), makes those productions eligible for bonus depreciation, and defines placement-in-service as the time of initial release or broadcast. The rule applies to productions that begin in taxable years ending after enactment.

• Creates a new tax treatment allowing immediate deduction for qualified U.S.-produced sound recording production costs under section 181.
• Limits the deductible amount to $150,000 per production and $150,000 aggregate per taxable year.
• Makes qualifying sound recording productions eligible for bonus depreciation under section 168(k).
• Defines placed-in-service for depreciation as the time of initial release or broadcast.
• Requires productions to be produced and recorded in the United States to qualify.
• Effective for productions commencing in taxable years ending after enactment.
• Targets smaller or independent recordings because of the $150,000 cap; large productions are generally unaffected.
• Amends cross-references and tax code headings to incorporate the new rule.