HITS Act Navigation
Legislation
The HITS Act
Help Independent Tracks Succeed Act
H.R. 761 — 119th Congress
What is the HITS Act?
The HITS Act is federal legislation introduced in January 2025 that allows independent musicians to immediately expense up to $150,000 in sound recording production costs in the year they're incurred—rather than having to slowly write them off over many years.
This puts indie artists on equal footing with film and television producers, who already have this tax treatment. If you spend money recording, mixing, mastering, or producing music, you can deduct those costs right away—improving cash flow and making it easier to reinvest in your career.
Why It Matters for Indie Artists
Better Cash Flow
Instead of waiting years to recover production costs through depreciation, you get the tax benefit immediately—freeing up money to record more music, tour, or market your work.
Level Playing Field
Film and TV productions already get this treatment. The HITS Act extends the same benefit to sound recordings—recognizing that music is just as valuable as other creative work.
Encourages Investment
When you can expense costs right away, it makes financial sense to invest more in quality production, better studios, and professional collaborators.
Supports Small Creators
The $150,000 cap is perfectly sized for indie artists and small labels—enough to cover professional recording projects without being limited to major-label budgets.
Key Provisions
Up to $150,000 Per Year
You can expense up to $150,000 in qualified sound recording production costs per tax year. This covers recording, mixing, mastering, and production work.
Must Be Produced in the U.S.
The sound recording must be produced and recorded in the United States to qualify for the deduction.
Applies to New Productions
The act applies to productions commencing in taxable years after the date of enactment—meaning new projects started after the bill becomes law.
Bonus Depreciation Eligible
Qualified sound recordings are also eligible for bonus depreciation, providing additional tax benefits for costs exceeding the $150,000 cap.
Record, Publish, Protect — All in One Place
The HITS Act lets indie artists expense the full cost of creating new music. Stream Disc completes the picture by giving artists a single platform where they can:
- • Record their voice and tracks
- • Publish their music onto a new physical medium (the Stream Disc)
- • Protect their identity and recordings with VIIM + Digital Voice DNA
Every part of this workflow — creating your voice identity, producing tracks, authenticating your releases, and printing your physical media — is fully tax-deductible under the HITS Act because it all counts as sound recording production.
A Unified Creative + Protective Workflow
With Stream Disc, an indie artist can:
Record vocals (deductible)
Use VIIM to authenticate their voice + create Digital Voice DNA (deductible)
Produce tracks + masters (deductible)
Publish releases on Stream Disc physical media (deductible)
Protect their voice and likeness from AI clones (deductible as part of the production workflow)
No other platform combines recording, publishing, protection, and physical media into one tax-write-off–eligible ecosystem.
Modern Music Creation Meets Modern Tax Law
Record it.
Publish it.
Protect it.
Deduct it.
Only with Stream Disc.
Why Stream Disc + HITS Act Work Together
The HITS Act recognizes that indie artists need tools, not just tax breaks. Stream Disc is built for the same mission: helping independent musicians succeed on their own terms.
Stream Disc allows artists to create, sell, and defend their music — all while qualifying for the HITS Act's full $150,000 deduction.
Stream Disc is 100% Tax Deductible Under the HITS Act
When you purchase Stream Disc physical media or services as part of your sound recording production, those costs qualify as production expenses under the HITS Act.
This means you can expense up to $150,000 in qualified costs—including Stream Disc—in the year you incur them, rather than depreciating them over time. Consult your tax advisor for specific guidance on your situation.
Bill Status & Details
- Bill Number:
- H.R. 761
- Congress:
- 119th Congress, 1st Session
- Introduced:
- January 28, 2025
- Sponsors:
- Rep. Estes and Rep. Sánchez
- Official Title:
- 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.
Protect What You Create
The HITS Act helps you invest in your music. Stream Disc helps you protect it.