S. 1121

119th CONGRESS 1st Session

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 · Sponsor: Mr. Warner · Committee: Committee on Finance

Table of contents

• S. 1121
  • SEC. 1. Short title
  • SEC. 2. Above-the-line deduction of expenses of performing artists

SEC. 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
  • of the Internal Revenue Code of 1986 is amended— Section 62(a)(2)(B)
    • by striking and inserting the following:
      • (i) The deductions
      • (ii) 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) 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—
      • such dollar amount, multiplied by
      • the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting for in subparagraph (A)(ii) thereof. calendar year 2024 calendar year 2016
      • 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.
    • by adding at the end the following new clauses:
• (b) Clarification regarding commission paid to performing artist’s manager or agent
  • of the Internal Revenue Code of 1986, as amended by subsection (a), is amended by inserting before the period at the end the following: . Section 62(a)(2)(B)(i)
• (c) Increase in threshold for determining nominal employers
  • of the Internal Revenue Code of 1986 is amended— Section 62(b)(2)
    • by striking and inserting the following:
      • (A) In general
        • An individual
    • by striking 00and inserting $500, and
      • (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 for in subparagraph (A)(ii) thereof. calendar year 2024 calendar year 2016
        • 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.
    • by adding at the end the following new subparagraph:
• (d) Technical and conforming amendments
  • of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended by striking by himand inserting by the performing artist. Section 62(a)(2)(B)(i)
  • Section 62(b)(1) of such Code is amended by inserting at the end of subparagraph (A), by striking 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.