Performing Artist Tax Parity Act of 2025

The Performing Artist Tax Parity Act of 2025 would modify tax rules for qualified performing artists who can deduct business expenses from their income. Currently, performing artists must earn at most $16,000 in adjusted gross income to qualify for this deduction and must receive at least $200 from each of at least two employers. If enacted, this bill would eliminate the $16,000 income cap and raise the minimum payment requirement to $500 per employer, adjusted for inflation starting in 2026.

However, the bill would introduce new income limits at higher levels. The tax deduction would begin phasing out for individuals with gross income exceeding $100,000 (or $200,000 for joint filers) and would completely phase out at $120,000 (or $240,000 for joint filers), with these thresholds also adjusted for inflation beginning in 2026. Additionally, the bill would allow performing artists to deduct commissions paid to managers or agents as business expenses.

The bill is currently in the early stages of the legislative process, having been introduced in January 2025 and referred to committee. If enacted, these changes could make it easier for mid-career performing artists to claim business expense deductions, though the new income phase-out limits would prevent higher-earning performers from using this deduction.