S. 752Senate117th Congress (2021-2023)In Committee

HITS Act

AI-Generated Summary

Updated February 8, 2026 at 12:23 AM UTC

The HITS Act amends the Internal Revenue Code to let creators of qualified sound recording productions treat certain production costs as current expenses instead of capitalizing them. It adds sound recordings to the list of productions eligible for the Section 181 expense election, limits the expense deduction to $150,000 per production (or total per year), and defines a qualified sound recording production as one made in the United States. The changes also integrate these productions into bonus depreciation rules and apply to productions beginning in taxable years after the law’s enactment.

Key Provisions

Expands Section 181 election to include qualified sound recording productions
Sets a $150,000 limit on the amount of sound recording production costs that can be expensed in a tax year
Defines “qualified sound recording production” as a sound recording produced and recorded in the United States
Allows such productions to qualify for bonus depreciation under Section 168(k) as if they were eligible under Section 181
Considers a qualified sound recording production placed in service at its initial release or broadcast
Effective for productions in taxable years ending after the act’s enactment

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S1571-1572)

Finance Committee

March 16, 2021

View full timeline

SenateIntro Referral

Introduced in Senate

March 16, 2021

SenateIntro Referral

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S1571-1572)

Finance Committee

March 16, 2021

Floor Debate

2 members

What members said about S. 752 on the floor

1 Republican1 Democrat

Sen. Dianne FeinsteinD-CA · Mar 16, 2021

Mr. President, I rise to speak in support of the ``Help Independent Tracks Succeed (HITS) Act,'' which Senator Blackburn and I introduced today. Representatives Linda Sanchez (D-CA) and Ron Estes…

Mr. President, I rise to speak in support of the ``Help Independent Tracks Succeed (HITS) Act,'' which Senator Blackburn and I introduced today. Representatives Linda Sanchez (D-CA) and Ron Estes (R-KS) have introduced companion legislation in the House of Representatives.

Since the start of the COVID-19 pandemic, I have consistently heard from independent musicians and producers in California who have lost a large percentage of their incomes due to concerts, festivals, and other events being cancelled.

With many live performance stages and venues across the Nation closed for months as a result of the pandemic, independent musicians and music makers such as technicians and creators have suffered significant loss of income.

According to a survey by the Copyright Alliance, 88 percent of creators have lost income due to the coronavirus pandemic, which is more than double the national average. Approximately half of survey respondents had lost 90 percent or more of their income.

Our bill would provide some relief to music creators by allowing independent musicians, technicians, and music producers to deduct the cost of producing new musical recordings, putting them on a level playing field with other arts productions.

The U.S. Tax Code allows film, television, and theater productions to fully deduct production expenses in the year they are incurred.

However, recording artists are not given the same treatment, and are forced instead to amortize their production expenses over a number of years.

The HITS Act would allow qualified sound recording producers to deduct 100% of recording production expenses--up to $150,000--in the year they are incurred, rather than in later years.

Because this change would simply accelerate a tax deduction that already exists, the bill's expected cost would be minimal.

In addition, because the deduction would be capped at $150,000 per production, our legislation would benefit smaller, independent musicians and music producers rather than large companies.

The coronavirus pandemic has had a dramatic impact on music creators around the Nation. Our bill would help create parity between musical creators and other creative producers, stimulate the economy, and get music makers back to work.

I hope my colleagues will join me in support of this bill. Thank you, Mr. President, and I yield the floor.

Sen. John ThuneR-SD · Mar 16, 2021

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in SenateIssued March 16, 2021

117th CONGRESS

1st Session

S. 752

IN THE SENATE OF THE UNITED STATES

March 16, 2021

Mrs. Feinstein (for herself and Mrs. Blackburn) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide for an election to expense certain qualified sound recording costs otherwise chargeable to capital account.

Short title

This Act may be cited as the Help Independent Tracks Succeed Act or the HITS Act.

Treatment of certain qualified sound recording productions

(a)

Election To treat costs as expenses

Section 181(a)(1) of the Internal Revenue Code of 1986 is amended by striking qualified film or television production, and any qualified live theatrical production, and inserting qualified film or television production, any qualified live theatrical production, and any qualified sound recording production.

(b)

Dollar limitation

Section 181(a)(2) of such Code is amended by adding at the end the following new paragraph:

(C)

Qualified sound recording production

Paragraph (1) shall not apply to so much of the aggregate cost of any qualified sound recording production, or to so much of the aggregate, cumulative cost of all such qualified sound recording productions in the taxable year, as exceeds $150,000.

(c)

No other deduction or amortization deduction allowable

Section 181(b) of such Code is amended by striking qualified film or television production or any qualified live theatrical production and inserting qualified film or television production, any qualified live theatrical production, or any qualified sound recording production.

(d)

Election

Section 181(c)(1) of such Code is amended by striking qualified film or television production or any qualified live theatrical production and inserting qualified film or television production, any qualified live theatrical production, or any qualified sound recording production.

(e)

Qualified sound recording production defined

Section 181 of such Code is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection:

(f)

Qualified sound recording production

For purposes of this section, the term qualified sound recording production means a sound recording (as defined in section 101 of title 17, United States Code) produced and recorded in the United States.

(f)

Bonus depreciation

(1)

Qualified sound recording production as qualified property

Section 168(k)(2)(A)(i) of such Code is amended—

(A)

by striking or at the end of subclause (IV), by adding or at the end of subclause (V), and by inserting after subclause (V) the following:

(VI)

which is a qualified sound recording production (as defined in subsection (f) of section 181) for which a deduction would have been allowable under section 181 without regard to subsections (a)(2) and (h) of such section or this subsection,

; and

(B)

in subclauses (IV) and (V) (as amended) by striking without regard to subsections (a)(2) and (g) both places it appears and inserting without regard to subsections (a)(2) and (h).

(2)

Production placed in service

Section 168(k)(2)(H) of such Code is amended by striking and at the end of clause (i), by striking the period at the end of clause (ii) and inserting , and, and by adding after clause (ii) the following:

(iii)

a qualified sound recording production shall be considered to be placed in service at the time of initial release or broadcast.

(g)

Conforming amendments

(1)

The heading for section 181 of such Code is amended to read as follows: Treatment of certain qualified productions..

(2)

The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 181 and inserting the following new item:

Sec. 181. Treatment of certain qualified productions.

(h)

Effective date

The amendments made by this section shall apply to productions commencing in taxable years ending after the date of the enactment of this Act.