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
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 2024forcalendar year 2016in 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 2024forcalendar year 2016in 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.