119-s1121

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1121 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1121

 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

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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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.--

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.
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