HITS Act

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. 1. Short title This Act may be cited as the Help Independent Tracks Succeed Act HITS Act 2. Treatment of certain qualified sound recording productions (a) Election To treat costs as expenses Section 181(a)(1) qualified film or television production, and any qualified live theatrical production, 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 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 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 . (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 or (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) 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 , and (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.

Summary: Help Independent Tracks Succeed Act or the HITS Act This bill permits taxpayers to treat as currently deductible expenses the cost of qualified sound recording productions not exceeding $150,000 in a taxable year. The bill defines qualified sound recording production as certain sound recordings produced and recorded in the United States.