Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB194 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 194
5	5	To amend the Internal Revenue Code of 1986 to provide for an election
6	6	to expense certain qualified sound recording costs otherwise chargeable
7	7	to capital account.
8	8	IN THE SENATE OF THE UNITED STATES
9	9	JANUARY22, 2025
10	10	Mrs. B
11	11	LACKBURN(for herself and Ms. CORTEZMASTO) introduced the
12	12	following bill; which was read twice and referred to the Committee on Finance
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to provide
15	15	for an election to expense certain qualified sound record-
16	16	ing costs otherwise chargeable to capital account.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE. 3
20	20	This Act may be cited as the ‘‘Help Independent 4
21	21	Tracks Succeed Act’’ or the ‘‘HITS Act’’. 5
22	22	SEC. 2. TREATMENT OF CERTAIN QUALIFIED SOUND RE-6
23	23	CORDING PRODUCTIONS. 7
24	24	(a) E
25	25	LECTIONTOTREATCOSTS ASEXPENSES.— 8
26	26	Section 181(a)(1) of the Internal Revenue Code of 1986 9
27	27	VerDate Sep 11 2014 23:23 Feb 18, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S194.IS S194
28	28	ssavage on LAPJG3WLY3PROD with BILLS 2
29	29	•S 194 IS
30	30	is amended by striking ‘‘qualified film or television produc-1
31	31	tion, and any qualified live theatrical production,’’ and in-2
32	32	serting ‘‘qualified film or television production, any quali-3
33	33	fied live theatrical production, and any qualified sound re-4
34	34	cording production’’. 5
35	35	(b) D
36	36	OLLARLIMITATION.—Section 181(a)(2) of such 6
37	37	Code is amended by adding at the end the following new 7
38	38	paragraph: 8
39	39	‘‘(C) Q
40	40	UALIFIED SOUND RECORDING PRO -9
41	41	DUCTION.—Paragraph (1) shall not apply to so 10
42	42	much of the aggregate cost of any qualified 11
43	43	sound recording production, or to so much of 12
44	44	the aggregate, cumulative cost of all such quali-13
45	45	fied sound recording productions in the taxable 14
46	46	year, as exceeds $150,000.’’. 15
47	47	(c) N
48	48	OOTHERDEDUCTION ORAMORTIZATIONDE-16
49	49	DUCTIONALLOWABLE.—Section 181(b) of such Code is 17
50	50	amended by striking ‘‘qualified film or television produc-18
51	51	tion or any qualified live theatrical production’’ and insert-19
52	52	ing ‘‘qualified film or television production, any qualified 20
53	53	live theatrical production, or any qualified sound recording 21
54	54	production’’. 22
55	55	(d) E
56	56	LECTION.—Section 181(c)(1) of such Code is 23
57	57	amended by striking ‘‘qualified film or television produc-24
58	58	tion or any qualified live theatrical production’’ and insert-25
59	59	VerDate Sep 11 2014 23:23 Feb 18, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S194.IS S194
60	60	ssavage on LAPJG3WLY3PROD with BILLS 3
61	61	•S 194 IS
62	62	ing ‘‘qualified film or television production, any qualified 1
63	63	live theatrical production, or any qualified sound recording 2
64	64	production’’. 3
65	65	(e) Q
66	66	UALIFIEDSOUNDRECORDINGPRODUCTION 4
67	67	D
68	68	EFINED.—Section 181 of such Code is amended by re-5
69	69	designating subsections (f) and (g) as subsections (g) and 6
70	70	(h), respectively, and by inserting after subsection (e) the 7
71	71	following new subsection: 8
72	72	‘‘(f) Q
73	73	UALIFIEDSOUNDRECORDINGPRODUCTION.— 9
74	74	For purposes of this section, the term ‘qualified sound re-10
75	75	cording production’ means a sound recording (as defined 11
76	76	in section 101 of title 17, United States Code) produced 12
77	77	and recorded in the United States.’’. 13
78	78	(f) B
79	79	ONUSDEPRECIATION.— 14
80	80	(1) Q
81	81	UALIFIED SOUND RECORDING PRODUC -15
82	82	TION AS QUALIFIED PROPERTY .—Section 16
83	83	168(k)(2)(A)(i) of such Code is amended— 17
84	84	(A) by striking ‘‘or’’ at the end of sub-18
85	85	clause (IV), by adding ‘‘or’’ at the end of sub-19
86	86	clause (V), and by inserting after subclause (V) 20
87	87	the following: 21
88	88	‘‘(VI) which is a qualified sound 22
89	89	recording production (as defined in 23
90	90	subsection (f) of section 181) for 24
91	91	which a deduction would have been al-25
92	92	VerDate Sep 11 2014 23:23 Feb 18, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S194.IS S194
93	93	ssavage on LAPJG3WLY3PROD with BILLS 4
94	94	•S 194 IS
95	95	lowable under section 181 without re-1
96	96	gard to subsections (a)(2) and (h) of 2
97	97	such section or this subsection,’’; and 3
98	98	(B) in subclauses (IV) and (V) (as amend-4
99	99	ed) by striking ‘‘without regard to subsections 5
100	100	(a)(2) and (g)’’ both places it appears and in-6
101	101	serting ‘‘without regard to subsections (a)(2) 7
102	102	and (h)’’. 8
103	103	(2) P
104	104	RODUCTION PLACED IN SERVICE .—Section 9
105	105	168(k)(2)(H) of such Code is amended by striking 10
106	106	‘‘and’’ at the end of clause (i), by striking the period 11
107	107	at the end of clause (ii) and inserting ‘‘, and’’, and 12
108	108	by adding after clause (ii) the following: 13
109	109	‘‘(iii) a qualified sound recording pro-14
110	110	duction shall be considered to be placed in 15
111	111	service at the time of initial release or 16
112	112	broadcast.’’. 17
113	113	(g) C
114	114	ONFORMINGAMENDMENTS.— 18
115	115	(1) The heading for section 181 of such Code 19
116	116	is amended to read as follows: ‘‘
117	117	TREATMENT OF 20
118	118	CERTAIN QUALIFIED PRODUCTIONS .’’. 21
119	119	(2) The table of sections for part VI of sub-22
120	120	chapter B of chapter 1 of such Code is amended by 23
121	121	striking the item relating to section 181 and insert-24
122	122	ing the following new item: 25
123	123	‘‘Sec. 181. Treatment of certain qualified productions.’’.
124	124	VerDate Sep 11 2014 23:23 Feb 18, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6211 E:\BILLS\S194.IS S194
125	125	ssavage on LAPJG3WLY3PROD with BILLS 5
126	126	•S 194 IS
127	127	(h) EFFECTIVEDATE.—The amendments made by 1
128	128	this section shall apply to productions commencing in tax-2
129	129	able years ending after the date of the enactment of this 3
130	130	Act. 4
131	131	Æ
132	132	VerDate Sep 11 2014 23:23 Feb 18, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S194.IS S194
133	133	ssavage on LAPJG3WLY3PROD with BILLS