Bill > S1625

This bill, the Help Independent Tracks Succeed (HITS) Act, amends the Internal Revenue Code to allow for the expensing of certain qualified sound recording costs that would otherwise be capitalized. Specifically, the bill: 1) Expands the existing Section 181 provision, which currently allows for the expensing of qualified film, television, and live theatrical productions, to also include qualified sound recording productions. 2) Establishes a $150,000 cap on the amount of qualified sound recording production costs that can be expensed under this provision. 3) Prohibits any other deduction or amortization for these qualified sound recording production costs. 4) Allows for the election to expense these qualified sound recording production costs. 5) Defines "qualified sound recording production" as a sound recording produced and recorded in the United States. 6) Provides for the qualified sound recording productions to be eligible for bonus depreciation under Section 168(k) of the tax code. The amendments made by this bill would apply to productions commencing in taxable years ending after the date of the bill's enactment.