S. 194 — HITS Act

This section expands the production cost expensing election under IRC §181—allowing immediate deduction in lieu of depreciation for qualified film, television, and live theatrical productions—to include qualified sound recording productions (i.e., sound recordings, as defined in 17 U.S.C. §101, produced and recorded in the United States), subject to a new $150,000 aggregate limit per taxable year. The section also makes such productions eligible for bonus depreciation under IRC §168(k)(2)(A)(i)(VI), treating them as placed in service at initial release or broadcast (and updating cross-references to reflect §181's redesignated subsections). The amendments apply to productions commencing in taxable years ending after enactment.