Bill Details
HR.761 - 119th Congress
Status
Latest action
2025-01-28 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-01-28
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
7
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would let people who make sound recordings deduct certain production costs right away on their taxes instead of spreading those costs out over time. It adds sound recordings made in the United States to a tax rule that already applies to some film, TV, and live theater productions. The goal is to make it easier and cheaper for artists and producers to create music and other recorded sound projects.
- It applies only to sound recordings produced and recorded in the United States.
- The immediate expense deduction would not apply to costs above $150,000 for a single production, or to more than $150,000 in total sound recording costs in a tax year.
- It also makes these sound recordings eligible for bonus depreciation under the tax code, which can provide an additional tax benefit.
- For tax purposes, a sound recording would be treated as placed in service when it is first released or broadcast.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 761 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 761
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 HOUSE OF REPRESENTATIVES
January 28, 2025
Mr. Estes (for himself and Ms. Sanchez) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Help Independent Tracks Succeed
Act'' or the ``HITS Act''.
SEC. 2. TREATMENT OF CERTAIN QUALIFIED SOUND RECORDING PRODUCTIONS.
(a) Election To Treat Costs as Expenses.--Section 181(a)(1) of the
Internal Revenue Code of 1986 is amended by striking ``qualified film
or television production, and any qualified live theatrical
production,'' and inserting ``qualified film or television production,
any qualified live theatrical production, and any qualified sound
recording production''.
(b) Dollar Limitation.--Section 181(a)(2) of such Code is amended
by adding at the end the following new paragraph:
``(C) Qualified sound recording production.--
Paragraph (1) shall not apply to so much of the
aggregate cost of any qualified sound recording
production, or to so much of the aggregate, cumulative
cost of all such qualified sound recording productions
in the taxable year, as exceeds $150,000.''.
(c) No Other Deduction or Amortization Deduction Allowable.--
Section 181(b) of such Code is amended by striking ``qualified film or
television production or any qualified live theatrical production'' and
inserting ``qualified film or television production, any qualified live
theatrical production, or any qualified sound recording production''.
(d) Election.--Section 181(c)(1) of such Code is amended by
striking ``qualified film or television production or any qualified
live theatrical production'' and inserting ``qualified film or
television production, any qualified live theatrical production, or any
qualified sound recording production''.
(e) Qualified Sound Recording Production Defined.--Section 181 of
such Code is amended by redesignating subsections (f) and (g) as
subsections (g) and (h), respectively, and by inserting after
subsection (e) the following new subsection:
``(f) Qualified Sound Recording Production.--For purposes of this
section, the term `qualified sound recording production' means a sound
recording (as defined in section 101 of title 17, United States Code)
produced and recorded in the United States.''.
(f) Bonus Depreciation.--
(1) Qualified sound recording production as qualified
property.--Section 168(k)(2)(A)(i) of such Code is amended--
(A) by striking ``or'' at the end of subclause
(IV), by adding ``or'' at the end of subclause (V), and
by inserting after subclause (V) the following:
``(VI) which is a qualified sound
recording production (as defined in
subsection (f) of section 181) for
which a deduction would have been
allowable under section 181 without
regard to subsections (a)(2) and (h) of
such section or this subsection,''; and
(B) in subclauses (IV) and (V) (as amended) by
striking ``without regard to subsections (a)(2) and
(g)'' both places it appears and inserting ``without
regard to subsections (a)(2) and (h)''.
(2) Production placed in service.--Section 168(k)(2)(H) of
such Code is amended by striking ``and'' at the end of clause
(i), by striking the period at the end of clause (ii) and
inserting ``, and'', and by adding after clause (ii) the
following:
``(iii) a qualified sound recording
production shall be considered to be placed in
service at the time of initial release or
broadcast.''.
(g) Conforming Amendments.--
(1) The heading for section 181 of such Code is amended to
read as follows: ``treatment of certain qualified
productions.''.
(2) The table of sections for part VI of subchapter B of
chapter 1 of such Code is amended by striking the item relating
to section 181 and inserting the following new item:
``Sec. 181. Treatment of certain qualified productions.''.
(h) Effective Date.--The amendments made by this section shall
apply to productions commencing in taxable years ending after the date
of the enactment of this Act.
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