Sponsors (27)
The bill gives performing artists more generous and inflation-protected above-the-line tax relief (including manager/agent commissions) but restricts benefits for higher-income performers, may exclude some small‑employer workers, and modestly lowers federal revenue.
Performing artists (e.g., actors, musicians, dancers) can claim above-the-line deductions for work-related expenses — including commissions paid to managers and agents — which lowers their adjusted gross income and reduces taxable income for qualifying taxpayers.
The bill indexes the deduction phaseout and the nominal-employer thresholds for cost-of-living adjustments after 2025, preserving the real value of those thresholds over time and preventing inflation erosion of eligibility and benefit levels.
Higher-income performers will see the deduction phase out rapidly (reduced 10 percentage points per $2,000 above $100,000), which may eliminate the benefit for many artists with incomes above the threshold.
Raising the nominal-employer threshold to $500 may disqualify some workers from counting small employers toward the employer-size test, potentially making some performers ineligible for the deduction.
Expanding above-the-line deductions reduces taxable income broadly, which may modestly lower federal revenue and could increase deficits or require offsets elsewhere in the budget.
Based on analysis of 2 sections of legislative text.
Makes performing-artist expenses an explicit above-the-line deduction, includes manager/agent commissions, raises/indexes the employer threshold, and phases down the deduction for higher incomes.
Introduced January 24, 2025 by Vernon G. Buchanan · Last progress January 24, 2025
Makes expenses for performing artists an explicit above-the-line (adjusted gross income) deduction, raises and indexes the small-nominal employer threshold, clarifies commissions to managers/agents are deductible, and phases down the deduction for higher-income taxpayers with cost-of-living indexing after 2025. Changes apply to tax years beginning after December 31, 2024.