Official Summaries

Performing Artist Tax Parity Act of 2025

This bill increases the income limit and makes other modifications to the above-the-line tax deduction for business expenses of qualified performing artists. (Above-the-line deductions are subtracted from gross income to calculate adjusted gross income.)

Under current law, a qualified performing artist (who may deduct certain business expenses from gross income) is defined as an individual who (1) performs services in the performing arts as an employee for at least two employers during the tax year and receives at least $200 from each employer (minimum payment), (2) has business deductions attributable to such services exceeding 10% of the gross income received from such services, and (3) has adjusted gross income of $16,000 or less.

The bill modifies the definition of a qualified performing artist (for purposes of the business expense deduction) to eliminate the $16,000 adjusted gross income limitation and increase the minimum payment amount to $500 (adjusted for inflation beginning in 2026).

However, under the bill, the tax deduction for business expenses of qualified performing artists phases out for individuals with gross income exceeding $100,000 (or $200,000 for joint filers) such that the tax deduction completely phases out for individuals with gross income exceeding $120,000 (or $240,000 for joint filers). (The phase-out threshold is adjusted for inflation beginning in 2026.)

Finally, the bill provides that commissions paid to a manager or agent by a qualified performing artist are deductible business expenses.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1121 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1121

  To amend the Internal Revenue Code of 1986 to increase the adjusted 
  gross income limitation for above-the-line deduction of expenses of 
          performing artist employees, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2025

Mr. Warner (for himself and Mr. Tillis) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to increase the adjusted 
  gross income limitation for above-the-line deduction of expenses of 
          performing artist employees, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Performing Artist Tax Parity Act of 
2025''.

SEC. 2. ABOVE-THE-LINE DEDUCTION OF EXPENSES OF PERFORMING ARTISTS.

    (a) In General.--Section 62(a)(2)(B) of the Internal Revenue Code 
of 1986 is amended--
            (1) by striking ``performing artists.--The deductions'' and 
        inserting the following: ``performing artists.--
                            ``(i) In general.--The deductions'', and
            (2) by adding at the end the following new clauses:
                            ``(ii) Phaseout.--The amount of expenses 
                        taken into account under clause (i) shall be 
                        reduced (but not below zero) by 10 percentage 
                        points for each $2,000 ($4,000 in the case of a 
                        joint return), or fraction thereof, by which 
                        the taxpayer's gross income for the taxable 
                        year exceeds $100,000 (twice such amount in the 
                        case of a joint return).
                            ``(iii) Cost-of-living adjustment.--In the 
                        case of any taxable year beginning in a 
                        calendar year after 2025, the $100,000 amount 
                        under clause (ii) shall be increased by an 
                        amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2024' for 
                                `calendar year 2016' in subparagraph 
                                (A)(ii) thereof.
                        If any amount after adjustment under the 
                        preceding sentence is not a multiple of $1,000, 
                        such amount shall be rounded to the nearest 
                        multiple of $1,000.''.
    (b) Clarification Regarding Commission Paid to Performing Artist's 
Manager or Agent.--Section 62(a)(2)(B)(i) of the Internal Revenue Code 
of 1986, as amended by subsection (a), is amended by inserting before 
the period at the end the following: ``, including any commission paid 
to the performing artist's manager or agent''.
    (c) Increase in Threshold for Determining Nominal Employers.--
Section 62(b)(2) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``An individual'' and inserting the 
        following:
                    ``(A) In general.--An individual'',
            (2) by striking ``$200'' and inserting ``$500'', and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Cost-of-living adjustment.--In the case of 
                any taxable year beginning in a calendar year after 
                2025, the $500 amount under subparagraph (A) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2024' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                If any amount after adjustment under the preceding 
                sentence is not a multiple of $50, such amount shall be 
                rounded to the nearest multiple of $50.''.
    (d) Technical and Conforming Amendments.--
            (1) Section 62(a)(2)(B)(i) of the Internal Revenue Code of 
        1986, as amended by the preceding provisions of this Act, is 
        amended by striking ``by him'' and inserting ``by the 
        performing artist''.
            (2) Section 62(b)(1) of such Code is amended by inserting 
        ``and'' at the end of subparagraph (A), by striking ``, and'' 
        at the end of subparagraph (B) and inserting a period, and by 
        striking subparagraph (C).
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2024.
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