The HITS Act: How US Artists Can Write Off Mixing & Production Expenses This Year

The reality is for every artist self funding an independent music career is expensive. Between buying gear, rehearsing, playing shows, investing in mixing, mastering and perhaps even paying for promo if you DO make a record, your bank account takes a beating before your music even hits Spotify - who then pays you peanuts per stream!

But what if I told you the normally traditionally anti-art evil US government has a hidden tax rule specifically designed to put cash back in your pocket as an indie reprobate when you make a record? What? Really! It’s called the HITS Act, and if you’re an independent artist, songwriter, or producer based in the United States, it is about to become your favorite financial shortcut. Here's how it works and how it can help you afford the professional, radio-ready mix your music deserves.

The Old, Unfair Tax Trap

Before this law came into effect, indie musicians got the short end of the stick. If you spent $5,000 recording and mixing an EP, the IRS didn't let you write off that $5,000 all at once on your tax return. Instead, you had to "amortize" it. That’s a fancy accountant weasel word that means you had to spread the deduction out over several years. Sure, for a major record label with millions in cash flow, that’s fine. For an independent artist trying to pay rent this month, it was an absolute cash-flow killer. The HITS Act changes the game completely.

What is the HITS Act? (Help Independent Tracks Succeed)

I know - it sounds unbelievable this is a real thing! The HITS Act updated Section 181 of the US tax code. It finally put independent music creators on the exact same level playing field as those fancy Hollywood film and television producers.

💡 The Big Win: The HITS Act allows you to write off 100% of your music production expenses (up to $150,000) in the exact same year the money was spent. BOOM!

Instead of waiting years to see the tax benefits of your hard work, you get to deduct every single penny from your tax bill right away.

What Qualifies as a "Deductible Expense"?

Even if it is a side hustle, as long as you are treating your music career like a legitimate business (even as a sole proprietor or independent contractor), any money you spend to create your master recordings is fair game for deduction .

Here is a quick look at what you can fully deduct this year:

• Studio Rental Time: All the hours you spend tracking in a commercial recording studio.

• Producer & Engineer Fees: The money you pay to the team helping you record.

• Professional Remote Mixing & Mastering: Yes (most importantly of course) hiring ME, Adam at Deluxe Mixing to turn your rough tracking session into a legendary commercial masterpiece is 100% tax-deductible!

• Session Musicians: Fees paid to hiring a live drummer, a horn section, or beardy synth genius.

• Equipment Rentals: Renting that vintage analog keyboard or high-end vocal mic for the week.

  
  

The Math Hack: How This Upgrades Your Next Mix

Think of it this way: when you invest in your music, Uncle Sam is essentially subsidizing the cost of your independent art. Mind blown!

Let's do some quick indie math. If you are in the 22% tax bracket and you invest $1,500 into getting your next project professionally mixed by an engineer who has worked on songs with millions of streams, that write-off could effectively slash your tax liability by $330.

Instead of settling for a subpar "home mix" because you’re worried about the upfront cost, you can safely invest in making your track sound like a real record, knowing it directly reduces what you owe the government at the end of the year.

Turn Tax Deductions into Radio-Ready Records

A great mix isn't an expense, it’s an investment in your career. When your music sounds competitive on the radio, playlists, and blogs, you're more likely to get noticed. It's a simple FACT. And now, thanks to the HITS Act, making that investment is a brilliant tax strategy.

Don't let your hard-earned money disappear into the tax ether. Keep your receipts, track your production costs, and put that budget where it belongs: right into the music.

Ready to take advantage of the HITS Act and give your next release the radio-ready finish it needs? Let's bring your sonic vision to life.

🚀 Get a custom quote for your project at Deluxe Mixing today or if you're feeling adventurous throw your hat in the ring for our monthly Deluxe Demo Drop to win a 100% free professional mix!

Disclaimer: I am a remote mix engineer with a passion for helping indie artists succeed, not a Certified Public Accountant (CPA). Tax laws can be as complex as a lead singer after a bottle of Tequila. Always consult a professional tax accountant or CPA to look at your specific financial situation before filing your returns.