HITS Act

This bill adds "qualified sound recording production" (like music albums recorded in the U.S.) to the list of productions eligible for immediate tax deductions under Section 181 of the tax code. It allows producers to deduct costs for these recordings, but caps the deductible amount at $150,000 per taxable year for sound recordings. The bill also extends bonus depreciation for sound recording productions, treating them as "placed in service" upon initial release or broadcast. It directly affects U.S. music producers and recording companies by changing their tax treatment for sound recording costs.