II 

117TH CONGRESS 

1ST SESSION S. 2872 

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 

SEPTEMBER 28, 2021 

Mr. WARNER (for himself and Mr. HAGERTY) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Performing Artist Tax 

5 Parity Act of 2021’’. 


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1 SEC. 2. ABOVE-THE-LINE DEDUCTION OF EXPENSES OF 

2 PERFORMING ARTISTS. 

3 (a) IN GENERAL.—Section 62(a)(2)(B) of the Inter4 nal Revenue Code of 1986 is amended— 

5 (1) by striking ‘‘PERFORMING ARTISTS.—The 

6 deductions’’ and inserting the following: ‘‘PER7 FORMING ARTISTS.— 

8 ‘‘(i) IN GENERAL.—The deductions’’; 

9 and 

10 (2) by adding at the end the following new 

11 clauses: 

12 ‘‘(ii) PHASEOUT.—The amount of ex13 penses taken into account under clause (i) 

14 shall be reduced (but not below zero) by 10 

15 percentage points for each $2,000 ($4,000 

16 in the case of a joint return), or fraction 

17 thereof, by which the taxpayer’s gross in18 come for the taxable year exceeds 

19 $100,000 (200 percent of such amount in 

20 the case of a joint return). 

21 ‘‘(iii) COST-OF-LIVING ADJUST22 MENT.—In the case of any taxable year be23 ginning in a calendar year after 2021, the 

24 $100,000 amount under clause (ii) shall be 

25 increased by an amount equal to— 


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1 ‘‘(I) such dollar amount, multi2 plied by 

3 ‘‘(II) the cost-of-living adjust4 ment determined under section 1(f)(3) 

5 for the calendar year in which the tax6 able year begins, determined by sub7 stituting ‘calendar year 2020’ for ‘cal8 endar year 2016’ in subparagraph 

9 (A)(ii) thereof. 

10 If any amount after adjustment under the 

11 preceding sentence is not a multiple of 

12 $1,000, such amount shall be rounded to 

13 the nearest multiple of $1,000.’’. 

14 (b) CLARIFICATION REGARDING COMMISSION PAID

15 TO PERFORMING ARTIST’S MANAGER OR AGENT.—Sec16 tion 62(a)(2)(B)(i) of such Code, as amended by sub17 section (a), is amended by inserting before the period at 

18 the end the following: ‘‘, including any commission paid 

19 to the performing artist’s manager or agent’’. 

20 (c) INCREASE IN THRESHOLD FOR DETERMINING

21 NOMINAL EMPLOYERS.—Section 62(b)(2) of such Code is 

22 amended— 

23 (1) by striking ‘‘An individual’’ and inserting 

24 the following: 

25 ‘‘(A) IN GENERAL.—An individual’’; 


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1 (2) by striking ‘‘$200’’ and inserting ‘‘$500’’; 

2 and 

3 (3) by adding at the end the following new sub4 paragraph: 

5 ‘‘(B) COST-OF-LIVING ADJUSTMENT.—In 

6 the case of any taxable year beginning in a cal7 endar year after 2021, the $500 amount under 

8 subparagraph (A) shall be increased by an 

9 amount equal to— 

10 ‘‘(i) such dollar amount, multiplied by 

11 ‘‘(ii) the cost-of-living adjustment de12 termined under section 1(f)(3) for the cal13 endar year in which the taxable year be14 gins, determined by substituting ‘calendar 

15 year 2020’ for ‘calendar year 2016’ in sub16 paragraph (A)(ii) thereof. 

17 If any amount after adjustment under the pre18 ceding sentence is not a multiple of $50, such 

19 amount shall be rounded to the nearest multiple 

20 of $50.’’. 

21 (d) CONFORMING AMENDMENTS.— 

22 (1) Section 62(a)(2)(B)(i) of such Code, as 

23 amended by the preceding provisions of this Act, is 

24 amended by striking ‘‘by him’’ and inserting ‘‘by the 

25 performing artist’’. 


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1 (2) Section 62(b)(1) of such Code is amended 

2 by inserting ‘‘and’’ at the end of subparagraph (A), 

3 by striking ‘‘, and’’ at the end of subparagraph (B) 

4 and inserting a period, and by striking subparagraph 

5 (C). 

6 (e) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2020. 

Æ 


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