Neil Portnow, president of the MusiCares Foundation and The Recording Academy, named the 63-year-old Young on Tuesday as the honoree for his "standard of artistic integrity and iconoclastic creativity for more than four decades."
Young will be saluted at a dinner and concert in Los Angeles on Jan. 29, two days before the 52nd annual Grammys. The event marks the music industry charity's 20th person of the year tribute.
Past recipients include Aretha Franklin and Neil Diamond.
Young's hits include 1972's "Heart of Gold" and 1989's "Rockin' in the Free World."