HITS Act Tax Breaks For Recording Music Finally Law With ‘One Big Beautiful Bill’ Passage

It took nearly five years, but the HITS Act finally became law July 4, with the measure that provides tax breaks to recording artists folded into President Donald Trump’s comprehensive domestic policy law.

First introduced in 2020 and since then reintroduced a number of times with bipartisan and bicameral support, the Help Independent Tracks Succeed Act allows independent artists to deduct 100% of production costs up to $150,000 in the first year. It’s a tax incentive that’s long been available to filmmakers and television and theater producers. Even with its popularity, the change never passed both houses of Congress. Most notably, it was included in the House version of President Joe Biden’s “Build Back Better Bill,” but was pulled when that legislation went to the Senate.

“NITO applauds passage of $150,000 first year recording expense tax deductions, something we have long endorsed,” said National Independent Talent Organization President Wayne Forte of Entourage Talent Associates. “Independent musicians are constantly struggling with higher costs and increased competition. This finally offers the relief that’s long been available to those in film, television and theatre.”

The HITS Act had been endorsed by a wide swath of industry organizations including NITO, The Recording Academy and the American Association of Independent Music.

“This marks a historic victory for independent music creators,” said Richard James Burgess of A2IM. “After years of tireless advocacy, we’ve righted a longstanding inequity by enabling independent labels, artists, musicians, songwriters, and publishers to fully expense recording costs—just as their peers in film, TV, and theater have long done.”