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S. 1121Senate119th Congress (2025-2027)In Committee

Performing Artist Tax Parity Act of 2025

Sponsored by Mark R. WarnerSen. Mark R. Warner (D-VA)
Introduced March 25, 2025

AI-Generated Summary

Updated November 24, 2025 at 1:43 AM UTC

The Performing Artist Tax Parity Act of 2025 updates the tax code to give performing artists a larger above‑the‑line deduction for work‑related expenses. It introduces a phase‑out of the deduction for higher‑income earners, adjusts the income threshold for inflation, and includes manager or agent commissions as deductible. The bill also raises the dollar amount that defines a nominal employer, affecting how certain employment relationships are taxed. These changes take effect for tax years starting after 2024.

Key Provisions

  • Adds a new deduction for performing artists that phases out by 10% for each $2,000 (or $4,000 for joint returns) a taxpayer’s income exceeds $100,000, with the $100,000 threshold adjusted for inflation each year after 2025.
  • Specifies that commissions paid to a performing artist’s manager or agent are included in the deductible expenses.
  • Raises the amount that defines a “nominal employer” from $200 to $500 (adjusted for inflation after 2025), which affects how employer‑employee relationships are treated for tax purposes.
  • Makes several technical wording changes to align the new rules with existing code language.
  • The changes apply to tax years beginning after December 31, 2024.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

March 25, 2025

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SenateIntro Referral

Introduced in Senate

March 25, 2025

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

March 25, 2025

Bill Text

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Introduced in SenateIssued March 25, 2025

II

119th CONGRESS

1st Session

S. 1121

IN THE SENATE OF THE UNITED STATES

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

A BILL

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.

1.

Short title

This Act may be cited as the Performing Artist Tax Parity Act of 2025.

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 2024 for calendar year 2016 in 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 2024 for calendar year 2016 in 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.