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Performing Artist Tax Parity Act of 2025
2/22/2025, 6:23 AM
Summary of Bill HR 721
The bill does not specify the exact amount by which the adjusted gross income limitation would be increased, but it is clear that the intention is to provide financial relief to performing artists who often incur significant expenses related to their work. This could include costs such as travel, costumes, equipment, and training.
In addition to the above-the-line deduction provision, the bill also includes language stating that it is intended for "other purposes," which leaves room for potential additional changes or provisions related to performing artist employees. Overall, Bill 119 HR 721 is focused on providing tax benefits to performing artists by allowing them to deduct more of their expenses from their taxable income. This could potentially help alleviate some of the financial burdens faced by these individuals and support their ability to continue pursuing their careers in the arts.
Congressional Summary of HR 721
Performing Artist Tax Parity Act of 2025
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.)
Under current law, a qualified performing artist (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.
The bill modifies the definition of a qualified performing artist (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).
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.)
Finally, the bill provides that commissions paid to a manager or agent by a qualified performing artist are deductible business expenses.
