Bill · S. 194· Senate(119-S-194)
HITS Act
- Introduced
- 1/22/2025
- Last activity
- 1/22/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Marsha Blackburn
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The "Help Independent Tracks Succeed Act," or "HITS Act," aims to amend the Internal Revenue Code of 1986. It seeks to allow an election to expense certain qualified sound recording production costs that are otherwise chargeable to a capital account. This includes sound recordings produced and recorded in the United States. The bill also modifies bonus depreciation rules to include these productions. These changes apply to productions commencing in taxable years ending after the date the Act is enacted.
Yes· 3 of 6
Does this cut taxes for small businesses?+5
The bill allows small-scale sound recording productions to expense costs rather than capitalizing them, providing immediate tax relief.
Does this make it easier to run a small business?+5
The bill specifically supports independent music productions by allowing them to expense costs up to a $150,000 threshold.
Would business owners be better off under this?+5
The bill benefits those in the business of music production by offering more favorable tax treatment for production costs.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Treatment of Sound Recordings: Under Section 2(a), the bill allows for an election to treat the costs of a "qualified sound recording production" as an expense rather than a capital cost. This provides a different way for these costs to be handled for tax purposes.
-
Bonus Depreciation Eligibility: Section 2(f) amends the code so that a qualified sound recording production can be considered qualified property for bonus depreciation. This includes defining such a production as being placed in service at the time of its initial release or broadcast.
-
Definition of Qualified Production: Section 2(e) defines a "qualified sound recording production" as a sound recording produced and recorded in the United States.
Potential Negative Impacts for People
- Cost Limitations: According to Section 2(b), there is a dollar limitation on this provision. The election does not apply to the aggregate cost of any qualified sound recording production, or the cumulative cost of all such productions in a taxable year, that exceeds $150,000.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+5Reduces Small Business Taxes+5Increases Job Creation+3Improves Economic Growth+2
- Demographic And Interest Groups
- Good For Business Owners+5Good For Urban Residents+1
- 1/22/2025
- Read twice and referred to the Committee on Finance.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Catherine Cortez MastoDemocrat · Nevada