If you use the iTunes Match ($25/yr), it doesn't count against your storage limit. However, I don't believe they offer any other method for storing your music with Apple's cloud.maybe a dumb question but can I use this up on music so I can free up some space on my iphone?
Free gets you a lot.
When you sign up for iCloud, you automatically get 5GB of free storage. And thats plenty of room, because of the way iCloud stores your content. Your purchased music, movies, apps, books, and TV shows as well as your Photo Stream dont count against your free storage. That 5GB goes a long way for your mail, documents, account information, settings, and other app data. And if you need more storage, you can easily purchase an upgrade right from your device.