ATTN: U.S.-Based Artists
& Producers Who Sample
SAMPLE LICENSING EXPENSES ARE NOW TAX DEDUCTIBLE UNDER NEW FEDERAL LAW
If you begin recording a project before the end of 2025, you may now be eligible to deduct up to $150,000 per year in qualified sound recording production costs on your U.S. taxes — including what you pay to clear samples.
💡 WHAT IS THE HITS ACT?
The Help Independent Tracks Succeed (HITS) Act — part of the 2025 Omnibus Tax Reform Bill — allows eligible music creators to treat qualified sound recording production costs as a business deduction in the year they’re incurred rather than spreading the deduction over years.[1]
In other words, if you spend money to produce qualified sound recordings and treat those costs as long-term investments (rather than regular expenses), you can write them off all at once (bonus depreciation) or gradually over time (amortization) — as long as the recordings are completed and released before January 1, 2029.”
✅ DO YOU QUALIFY?
Here’s what’s required:
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🎙️ Your sound recording must be entirely produced and recorded in the U.S.
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📅 You must begin production before January 1, 2026
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🧾 You must have documentation of the expense (invoice, receipt, or proof of payment)
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💸 The fee must be paid out of pocket — not reimbursed by a third party like your label
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👤 The individual or company that paid must file a U.S. tax return
🧮 The expense must be treated as a business deduction[2]If you meet all the above, your sample clearance costs may be deductible. Talk to your tax advisor to confirm.
🎶 WHY THIS MATTERS
Sample clearance isn’t just a legal safeguard — it’s an investment in your creative future. And now, it can also work in your favor come tax time.APM Music is the trusted behind-the-scenes sample partner for hundreds of iconic tracks including:“Peekaboo” – Kendrick Lamar“First Person Shooter” – Drake feat. J. Cole“No More Hiding” – SZA“Feel A Way” – KAYTRANADA feat. Don Toliver“SKI” – Future“Murdergram” – LL Cool J feat. Eminem“Walkin” – Denzel Curry“Bruuuh” – JID“Human” - $NOT feat. Night Lovell“D.O.A. (Death of Auto-Tune)” – Jay-Z“Numbers on the Boards” – Pusha T“Devil’s Work” – Joyner Lucas“Beautiful People (Stay High)” – The Black Keys“All Night” – Chance the Rapper“Meat Grinder” – Madvillain“500 Benz” – Joey Bada$$
WHY APM?
✅ Deep vintage catalog — including the crate-digging library gold behind today’s biggest hits✅ Creative support — we help you discover, dig for, and flip unexpected gems✅ Fast, artist-friendly clearance terms🚀
LET’S CLEAR IT UP
Contact aweitz@apmmusic.com to:
Learn more about what we do
Request access to explore our catalog and mine for library gold
Get a quote
Disclaimer:
This document is for informational purposes only and does not constitute legal, financial, or tax advice. You should consult with a qualified attorney, tax professional, or financial advisor to determine how the information herein may apply to your specific situation. APM Music makes no representations or warranties regarding the deductibility of any specific expense and assumes no liability for any actions taken based on this content.