Performing Artist Tax Parity Act of 2025
The proposed amendments would modify existing provisions in the tax code that affect performing artists by raising the income threshold at which deductions begin to phase out. Under the new terms, deductions would be reduced by 10 percentage points for every $2,000 of income exceeding $100,000 for individual taxpayers, which would assist middle-income artists in claiming more of their legitimate business expenses. Additionally, the bill includes a cost-of-living adjustment feature to maintain the real value of the deduction over time.
SB1121, also known as the Performing Artist Tax Parity Act of 2025, is designed to amend the Internal Revenue Code to provide greater tax benefits for performing artists. The bill aims to increase the adjusted gross income limitation for above-the-line deductions related to the expenses of performing artist employees. This is particularly significant as it would allow artists to better recover expenses incurred in their craft, potentially enhancing their financial stability in a sector often characterized by financial fragility.
Notably, the act also addresses payments made to managers or agents of performing artists, clarifying that commissions paid to these representatives will be included as deductible expenses. This aspect could generate discussion around how widespread such practices are within the industry and whether this could lead to disputes regarding allowable deductions. Overall, the bill attempts to highlight and address the unique financial challenges faced by performing artists, making it a significant piece of legislation within the context of cultural and economic policy.