Performing Artist Tax Parity Act of 2025

This bill creates a new tax deduction for individual performing artists (such as actors, musicians, and dancers) to deduct work-related expenses directly from their taxable income. It includes a phaseout that reduces the deduction by 10% for every $2,000 earned above $100,000 annually (or $200,000 for joint filers). The bill also raises the threshold for small employer tax breaks from $200 to $500 per year and clarifies that commissions paid to an artist’s manager or agent count as deductible expenses. These changes apply to tax years beginning after December 31, 2024.