Specifically, the HITS Act allows artists, record producers, and songwriters to deduct the cost of sound recording and production expenses – up to $150,000 – in the year they are incurred, rather than amortized over the life of the recording. S.194 – HITS Act 119th Congress (2025-2026)
From Dave Ratner at the Creative Law Network: Independent music artists . . .
What does it mean for you? After 5 years, the Help Independent Tracks Succeed (HITS) Act is finally signed into law! Here’s what you need to know:
● Tax Break! The HITS Act provides tax relief for you (independent artists, songwriters, and labels) by allowing up to $150,000 in music production expenses to be deducted in the year they are incurred.
● Parity with other Creative Sectors It aligns the music industry with other creative sectors, such as film, television, and live theater, which already benefit from similar tax incentives.
● A Win for Independent Creators It is a victory for independent music creators like you, who struggle to compete against the market power of big tech platforms.
Let’s spread the word to your independent music artist/engineer/producer communities – share this post!
Sources: The Recording Academy, A2IM (American Association of Independent Music), National Independent Talent Organization, Pollstar
Used with permission of Dave Ratner
Creative Law Network
https://www.creativelawnetwork.com
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COMBO Board Member Clark Hagan writes: I got this from my producer friend Bob Bullock in Nashville. He posted this on his facebook page and asked for no negative responses.
Why the New HITS Act Is a Win for Independent Artist
Just passed into law on July 4, 2025 — the HITS Act gives independent musicians and producers real financial relief:
* Immediate Tax Deductions: Artists can now deduct 100% of their recording expenses (up to $150,000) in the same year they’re spent — no more waiting years to recoup.
* Levels the Playing Field: Music creators now get the same tax breaks that film, TV, and theater professionals already enjoy.
* Boosts Cash Flow: Immediate deductions = more money in your pocket now. Use it for studio time, hiring musicians, mixing/mastering, or marketing.
* Reduces Risk for Indie Projects: Makes it easier to take creative risks, collaborate, and grow your career without being crushed by upfront costs.
* Supported by the Industry: Backed by the Recording Academy, A2IM, ASCAP, BMI, RIAA, and more — this law has deep industry support.
* Better for Long-Term Sustainability: With touring income unpredictable, this helps creators reinvest, release more music, and keep their careers alive.
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Bottom line: The HITS Act is a game-changer for independent artists. Time to build, create, and thrive.
You can find a more definitive description on the Recording Academy website:
https://www.recordingacademy.com/advocacy/issues-policy/hits-act