Performing Artist Tax Parity Act of 2025

Bill: 119-s-1121
Sponsor: full_name: Sen. Warner, Mark R. [D-VA]
Introduced: 2025-03-25
Policy area: Taxation
Latest action: action_date: 2025-03-25
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2025-03-25
action_desc: Introduced in Senate
text: <p><strong>Performing Artist Tax Parity Act of 2025</strong></p><p>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.)</p><p>Under current law, a <em>qualified performing artist</em> (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.</p><p>The bill modifies the definition of a <em>qualified performing artist</em> (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).</p><p>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.)</p><p>Finally, the bill provides that commissions paid to a manager or agent by a qualified performing artist are deductible business expenses.</p>

tv_txt: II 119th CONGRESS 1st Session S. 1121 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.

1. Short title This Act may be cited as the Performing Artist Tax Parity Act of 2025 . 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.