07/08/2025
🏆GAME CHANGER FOR ALL INDEPENDENT’S IN THE MUSIC INDUSTRY🏆
Here’s everything you need to know about the newly passed HITS Act (Help Independent Tracks Succeed Act) — a major win for independent artists, songwriters, producers, and labels:
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🎉 What the HITS Act Does
• Immediate Tax Deductions: Independent artists and recording pros can now deduct 100% of qualifying recording expenses—up to $150,000 in the year they’re incurred, instead of spreading the deduction over several years .
• Leveling the Field: This change brings the music sector in line with film, TV, and theater, which already enjoy similar immediate-expense benefits .
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🧾 Why It Matters
• Improved Cash Flow: Immediate expense deductions mean more working capital—artists can return to the studio faster without draining savings .
• Bipartisan support: Championed by Reps. Linda Sánchez (D-CA), Ron Estes (R-KS), and Senators Blackburn (R-TN) & Cortez Masto (D-NV), it’s one of the rare bipartisan wins for creators .
• Recognition of the Indie Sector: Independent labels make up over 37% of U.S. recorded music sales, yet previously lacked this tax parity .
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🛠 Who It Helps
• Independent artists & labels working on new recordings
• Producers, technicians, session musicians, songwriters
• Anyone in the recording process can write off expenses like studio time, personnel, equipment—not just big-budget productions .
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📅 Timeline & Next Steps
• Congress passed the HITS Act as part of the “One Big Beautiful Bill” – signed into law on July 4, 2025 .
• IRS and tax professionals are expected to release guidance soon on how to implement the deduction.
• Artists should begin tracking qualifying recording expenses now and plan to claim them on their 2025 tax filings.
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💡 Tips for You as an Independent Artist
1. Track Everything: Document all studio-related costs—time, equipment, personnel, rentals.
2. Save Receipts & Invoices: Especially those connected with recording sessions.
3. Work With a Good Accountant: They need to know about the HITS Act deduction before filing.
4. Use Savings to Create: Reinvest in your studio, marketing, or hiring collaborators.
5. Stay Informed: Look out for IRS bulletins and guidance this tax season.
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✅ Bottom Line
This is a game-changer for indie creators. You can now forego the years-long wait for tax relief and immediately reinvest in your craft, freeing up finances to grow your studio, fund childcare projects, or expand your roles.
If you’d like, I’d be glad to help you:
• Draft a simple expense tracker template
• Find a CPA experienced with HITS Act claims
• Understand how this can impact your music studio setup or team.
