Big News for Indies: HITS Act Signed Into Law

After years of advocacy and anticipation, the HITS Act (Help Independent Tracks Succeed) has officially passed, and it’s a massive step forward for independent artists, producers, and labels across the country. 💰💯 Here’s what this means for you…

Big News for Indies: HITS Act Signed Into Law

What Is the HITS Act?

The HITS Act is a tax reform designed to give music creators the same financial advantages already granted to the film, TV, and theater industries. Specifically, it allows artists, songwriters, producers, and labels to deduct up to $150,000 in recording expenses in the same year those costs are incurred, rather than spreading deductions out over several years.

That means if you invest in recording an album, EP, or even a batch of singles this year, you can write off those expenses right away. Freeing up cash flow and making it easier to reinvest in your career.

Why is this so important?

For independent artists and labels, recording is often one of the biggest upfront investments, and one of the hardest to recoup quickly. This change gives creatives immediate financial relief, levels the playing field, and provides a serious incentive to keep creating and collaborating.

Beyond the tax savings, the HITS Act also represents a symbolic win. It acknowledges music creators as legitimate small business operators and entrepreneurs, and affirms that the cultural value of music deserves the same support as other forms of entertainment.

In addition to the financial benefits, the bill also blocked a proposed federal restriction that would have prevented states from creating their own AI regulations. That’s a big win for creators advocating for stronger protections against the misuse of their likeness, voice, and creative work by AI platforms.

To wrap things up…

A2IM President and CEO Richard James Burgess called it “a historic victory for independent music creators.” Recording Academy CEO Harvey Mason Jr. echoed the sentiment, calling it “a huge step forward in protecting creators and sustaining a vibrant music ecosystem.”

This is a reminder that collective action matters. When artists, songwriters, labels, and advocates speak up together, change is possible. ✊

If you’re an artist, label, producer, or songwriter, now’s the time to talk to a tax professional about how this could impact your filing strategy in 2025 and beyond. Whether you’re working with a small team or running your own label, this new tax benefit could significantly affect how you plan (and fund) your next project.

Cheers!