[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 194 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 194

 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 SENATE OF THE UNITED STATES

                            January 22, 2025

   Mrs. Blackburn (for herself and Ms. Cortez Masto) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 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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