HITS Act tax deductions now law in Trump’s Big Beautiful Bill

The Help Independent Tracks Succeed HITS Act tax deductions for musicians became law in Trump’s Big Beautiful Bill.

HITS Act tax deductions now law

The Hits Act was originally introduced as a standalone bill with partisan support. It allows independent musicians, technicians, songwriters, and producers to deduct 100% of recording expenses in the year incurred rather than in later years.

Trump signed the new bill which includes up to $150,000 in first year recording expense deductions on July 4th. The federal tax code already allowed film, television, and theater productions to deduct production expenses in the year incurred.

“NITO applauds passage of $150,000 first year recording expense tax deductions, something we have long endorsed,” said NITO President Wayne Forte of Entourage Talent Associates. “Independent musicians are constantly struggling with higher costs and increased competition. This finally offers the relief that’s long been available to those in film, television and theatre.”

“This marks a historic victory for independent music creators,” said Richard James Burgess of A2IM (American Association of Independent Music). “After years of tireless advocacy, we’ve righted a longstanding inequity by enabling independent labels, artists, musicians, songwriters, and publishers to fully expense recording costs—just as their peers in film, TV, and theater have long done.”

The HITS Act had also been endorsed by the Recording Academy, RIAA, NIVA, ASCAP, BMI, NMPA and others.

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of the Skyline Artists Agency