SCL Supports Reintroduction of HITS Act to US Congress

Representatives Ron Estes (R-Kansas) and Linda Sánchez (D-California) as well as Senators Catherine Cortez Masto (D-Nevada) and Marsha Blackburn (R-Tennessee) have reintroduced the Help Independent Tracks Succeed (HITS) Act – legislation that allows qualified sound recording producers and artists to deduct 100% of production expenses in the year they are incurred. This would provide parity with film, television and live theatrical productions that already benefit from this tax provision.

The HITS Act provides critical tax relief for independent artists, songwriters and labels by allowing up to $150,000 in music production expenses to be deducted in the year they are incurred. This aligns the music industry with other creative sectors, such as film, television and live theater, which already benefit from similar tax incentives.

The HITS Act was originally introduced in December, 2020 during the 116th Congress as a response to the COVID-19 Pandemic’s sizable alterations to the music industry and has been introduced each year since, adding additional protections for music creators and building support with each iteration.

Creators are hoping this reintroduction will succeed in each chamber as it “represents exactly the type of low-cost but impactful economic investment that Congress should be proud to support” and calls it a “smart and simple step that will make a lasting difference for countless independent music creators and music small business.”

Read the full statement from the Recording Academy below.