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HITS Act to Become Law Following Mega-Bill Passage — Recording Academy and A2IM Applaud the ‘Historic Victory for Independent Music Creators’

After five years of advocacy, independent artists finally gain equal footing with other creatives in expensing recording costs.

Author

Hector Santana
July 06, 2025

Half a Decade in the Making, the HITS Act Is Now Law

After years of stops, starts, and setbacks, the Help Independent Tracks Succeed (HITS) Act has finally cleared its last hurdle—poised to be signed into law as part of the sweeping One Big Beautiful Bill Act. This long-awaited development is being hailed as a historic win for independent musicians, songwriters, and small labels.

Originally introduced in 2020, the bipartisan HITS Act is concise—just five pages long—but its impact is substantial. The bill allows artists to deduct up to $150,000 in recording expenses in the same year they are incurred, rather than spreading the deduction across multiple years. For independent creators operating on tight budgets, this change is more than an accounting tweak—it’s a lifeline.

A Hard-Fought Victory for the Independent Music Community

Support for the HITS Act has been strong across the industry. Backed by organizations including the Recording Academy, the American Association of Independent Music (A2IM), the RIAA, and the NMPA, the legislation initially seemed to have momentum in 2021 as part of the Build Back Better Act—only to be dropped during Senate negotiations.

Persistent advocacy led to reintroductions in both chambers of Congress in early 2025. Spearheaded by Reps. Linda Sánchez (D-CA) and Ron Estes (R-KS) in the House and Senators Catherine Cortez Masto (D-NV) and Marsha Blackburn (R-TN) in the Senate, the bill finally found a path forward as part of the larger domestic policy package passed this week.

Industry Reactions: Relief, Gratitude, and Renewed Energy

A2IM President and CEO Richard James Burgess celebrated the HITS Act’s passage as “a historic victory for independent music creators,” emphasizing the importance of finally leveling the financial playing field.

“After years of tireless advocacy, we’ve righted a longstanding inequity by enabling independent labels, artists, musicians, songwriters, and publishers to fully expense recording costs—just as their peers in film, TV, and theater have long done,” said Burgess.

Recording Academy CEO Harvey Mason Jr. echoed the sentiment, calling it a “powerful win for independent artists.”

“This moment represents meaningful progress toward protecting creators and sustaining a vibrant music ecosystem,” Mason said. “We are deeply grateful for the unwavering support from members of Congress who championed this cause.”

Why It Matters

In an era where DIY artistry is more viable than ever—thanks to digital distribution, social media, and streaming platforms—financial flexibility can make or break a project. The HITS Act offers critical relief, allowing creators to reinvest more quickly in their work and careers.

It also sends a powerful message: Independent music matters. Legislators have now acknowledged the vital cultural and economic contributions of small, independent creators, ensuring they’re no longer sidelined by outdated tax policies.

One More Win for Artists—With an Eye on the Future

The broader bill that includes the HITS Act also struck down a proposed 10-year moratorium on state-level AI regulations—a notable decision, given the ongoing debate about AI’s role in creative industries. While the battle over AI policy is far from settled, the passage of the HITS Act shows that focused, sustained advocacy can lead to real results for the music community.

As the HITS Act becomes law, independent artists across the U.S. can celebrate a rare and resounding policy victory. It’s a moment to pause, reflect—and keep creating.

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