For independent artists, producers, and small labels, the studio just got more affordable. A little-noticed tax change—known as the Help Independent Tracks Succeed, or HITS Act—brings music production into parity with film and television by letting creators expense up to $150,000 in qualified recording costs in the same year they’re incurred. In practical terms, that means cash back in your pocket while you’re still in the creative cycle, not years down the line.
Why this matters now
Ask any indie what squeezes the budget: it’s not inspiration, it’s timing. Studio days, engineers, session players, mixing and mastering all land before release revenue shows up. The HITS Act flips that script by front-loading the tax relief. For lean teams and self-funded projects, that’s the difference between trimming a horn section and booking it.
What’s covered (and what isn’t)
The deduction is aimed squarely at making the recording. That typically includes:
Studio rental and session time
Engineer and producer fees
Session musician payments
Editing, tuning, mixing and mastering
Equipment rentals used for the sessions
What it doesn’t cover: marketing campaigns, touring, and distribution. The law’s focus is the creative production itself, not the rollout.
The fine print, minus the legalese
Two pillars define eligibility:
The cap: up to $150,000 in qualified costs per year.
The location: recordings must be produced and recorded in the United States.
Albums, EPs, singles—even digital-only releases—fit the bill if they meet those criteria.
A nudge toward bolder projects
For many, this will green-light sessions that once felt out of reach: live strings instead of samples, a veteran mixer on the final pass, an extra day to capture the take that actually moves you. It’s also a lifeline for small studios and freelance crews who depend on indie traffic. When artists can expense responsibly in-year, they tend to reinvest locally—book the room, hire the players, keep the scene alive.
The AI side note with big implications
One more subplot: the final package steered clear of a sweeping federal preemption on AI rules, leaving room for states to continue crafting protections around voice, likeness, and creative works. For artists watching the rise of unauthorized clones, that’s no small footnote.
How to make it work for you
Keep receipts like a label would. Dated invoices, contracts, W-9s/1099s, payroll records, call sheets, and anything that shows the session happened in the U.S.
Track by project. Separate qualified production costs from non-qualified items (like PR or playlist pitching).
Loop in an entertainment-savvy CPA early. The mechanics are straightforward, but categorization matters—and so does timing.
The big picture
Indie music has long acted like a small business without being treated like one. The HITS Act acknowledges what creators already know: recordings are real investments with real local impact. With the ability to expense major production costs now, artists can plan more ambitiously, studios can stay busier, and the work can sound the way it was meant to.
Editor’s note: This article is for general information only and isn’t tax advice. For your specific situation, consult a qualified professional.
