II
119THCONGRESS
1
STSESSION S. 194
To amend the Internal Revenue Code of 1986 to provide for an election
to expense certain qualified sound recording costs otherwise chargeable
to capital account.
IN THE SENATE OF THE UNITED STATES
JANUARY22, 2025
Mrs. B
LACKBURN(for herself and Ms. CORTEZMASTO) introduced the
following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide
for an election to expense certain qualified sound record-
ing costs otherwise chargeable to capital account.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Help Independent 4
Tracks Succeed Act’’ or the ‘‘HITS Act’’. 5
SEC. 2. TREATMENT OF CERTAIN QUALIFIED SOUND RE-6
CORDING PRODUCTIONS. 7
(a) E
LECTIONTOTREATCOSTS ASEXPENSES.— 8
Section 181(a)(1) of the Internal Revenue Code of 1986 9
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•S 194 IS
is amended by striking ‘‘qualified film or television produc-1
tion, and any qualified live theatrical production,’’ and in-2
serting ‘‘qualified film or television production, any quali-3
fied live theatrical production, and any qualified sound re-4
cording production’’. 5
(b) D
OLLARLIMITATION.—Section 181(a)(2) of such 6
Code is amended by adding at the end the following new 7
paragraph: 8
‘‘(C) Q
UALIFIED SOUND RECORDING PRO -9
DUCTION.—Paragraph (1) shall not apply to so 10
much of the aggregate cost of any qualified 11
sound recording production, or to so much of 12
the aggregate, cumulative cost of all such quali-13
fied sound recording productions in the taxable 14
year, as exceeds $150,000.’’. 15
(c) N
OOTHERDEDUCTION ORAMORTIZATIONDE-16
DUCTIONALLOWABLE.—Section 181(b) of such Code is 17
amended by striking ‘‘qualified film or television produc-18
tion or any qualified live theatrical production’’ and insert-19
ing ‘‘qualified film or television production, any qualified 20
live theatrical production, or any qualified sound recording 21
production’’. 22
(d) E
LECTION.—Section 181(c)(1) of such Code is 23
amended by striking ‘‘qualified film or television produc-24
tion or any qualified live theatrical production’’ and insert-25
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•S 194 IS
ing ‘‘qualified film or television production, any qualified 1
live theatrical production, or any qualified sound recording 2
production’’. 3
(e) Q
UALIFIEDSOUNDRECORDINGPRODUCTION 4
D
EFINED.—Section 181 of such Code is amended by re-5
designating subsections (f) and (g) as subsections (g) and 6
(h), respectively, and by inserting after subsection (e) the 7
following new subsection: 8
‘‘(f) Q
UALIFIEDSOUNDRECORDINGPRODUCTION.— 9
For purposes of this section, the term ‘qualified sound re-10
cording production’ means a sound recording (as defined 11
in section 101 of title 17, United States Code) produced 12
and recorded in the United States.’’. 13
(f) B
ONUSDEPRECIATION.— 14
(1) Q
UALIFIED SOUND RECORDING PRODUC -15
TION AS QUALIFIED PROPERTY .—Section 16
168(k)(2)(A)(i) of such Code is amended— 17
(A) by striking ‘‘or’’ at the end of sub-18
clause (IV), by adding ‘‘or’’ at the end of sub-19
clause (V), and by inserting after subclause (V) 20
the following: 21
‘‘(VI) which is a qualified sound 22
recording production (as defined in 23
subsection (f) of section 181) for 24
which a deduction would have been al-25
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lowable under section 181 without re-1
gard to subsections (a)(2) and (h) of 2
such section or this subsection,’’; and 3
(B) in subclauses (IV) and (V) (as amend-4
ed) by striking ‘‘without regard to subsections 5
(a)(2) and (g)’’ both places it appears and in-6
serting ‘‘without regard to subsections (a)(2) 7
and (h)’’. 8
(2) P
RODUCTION PLACED IN SERVICE .—Section 9
168(k)(2)(H) of such Code is amended by striking 10
‘‘and’’ at the end of clause (i), by striking the period 11
at the end of clause (ii) and inserting ‘‘, and’’, and 12
by adding after clause (ii) the following: 13
‘‘(iii) a qualified sound recording pro-14
duction shall be considered to be placed in 15
service at the time of initial release or 16
broadcast.’’. 17
(g) C
ONFORMINGAMENDMENTS.— 18
(1) The heading for section 181 of such Code 19
is amended to read as follows: ‘‘
TREATMENT OF 20
CERTAIN QUALIFIED PRODUCTIONS .’’. 21
(2) The table of sections for part VI of sub-22
chapter B of chapter 1 of such Code is amended by 23
striking the item relating to section 181 and insert-24
ing the following new item: 25
‘‘Sec. 181. Treatment of certain qualified productions.’’.
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(h) EFFECTIVEDATE.—The amendments made by 1
this section shall apply to productions commencing in tax-2
able years ending after the date of the enactment of this 3
Act. 4
Æ
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