Performing Artist Tax Parity Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 3121 To amend the Internal Revenue Code of 1986 to increase the adjusted gross income limitation for above-the-line deduction of expenses of per- forming artist employees, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 5, 2019 Ms. JUDY CHU of California (for herself and Mr. BUCHANAN) introduced the following bill; which was referred to the Committee on Ways and Means 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Performing Artist Tax 4 Parity Act of 2019’’. 5 VerDate Sep 11 2014 16:51 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3121.IH H3121 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 3121 IH SEC. 2. ABOVE-THE-LINE DEDUCTION OF EXPENSES OF 1 PERFORMING ARTISTS. 2 (a) IN GENERAL.—Section 62(a)(2)(B) of the Inter- 3 nal Revenue Code of 1986 is amended— 4 (1) by striking ‘‘PERFORMING ARTISTS.—The 5 deductions’’ and inserting the following: ‘‘PER- 6 FORMING ARTISTS.— 7 ‘‘(i) IN GENERAL.—The deductions’’, 8 and 9 (2) by adding at the end the following new 10 clauses: 11 ‘‘(ii) PHASEOUT.—The amount of ex- 12 penses taken into account under clause (i) 13 shall be reduced (but not below zero) by 10 14 percentage points for each $2,000 ($4,000 15 in the case of a joint return), or fraction 16 thereof, by which the taxpayer’s adjusted 17 gross income (determined without regard 18 to this subparagraph) for the taxable year 19 exceeds $100,000 (200 percent of such 20 amount in the case of a joint return). 21 ‘‘(iii) COST-OF-LIVING ADJUST- 22 MENT.—In the case of any taxable year be- 23 ginning in a calendar year after 2019, the 24 $100,000 amount under clause (ii) shall be 25 increased by an amount equal to— 26 VerDate Sep 11 2014 16:51 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3121.IH H3121 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 3121 IH ‘‘(I) such dollar amount, multi- 1 plied by 2 ‘‘(II) the cost-of-living adjust- 3 ment determined under section 1(f)(3) 4 for the calendar year in which the tax- 5 able year begins, determined by sub- 6 stituting ‘calendar year 2018’ for ‘cal- 7 endar year 2016’ in subparagraph 8 (A)(ii) thereof. 9 If any amount after adjustment under the 10 preceding sentence is not a multiple of 11 $1,000, such amount shall be rounded to 12 the nearest multiple of $1,000.’’. 13 (b) CLARIFICATION REGARDING COMMISSION PAID 14 TO PERFORMING ARTIST’S MANAGER OR AGENT.—Sec- 15 tion 62(a)(2)(B)(i) of such Code, as amended by sub- 16 section (a), is amended by inserting before the period at 17 the end the following: ‘‘, including any commission paid 18 to the performing artist’s manager or agent’’. 19 (c) CONFORMING AMENDMENTS.— 20 (1) Section 62(a)(2)(B)(i) of such Code, as 21 amended by the preceding provisions of this Act, is 22 amended by striking ‘‘by him’’ and inserting ‘‘by the 23 performing artist’’. 24 VerDate Sep 11 2014 16:51 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3121.IH H3121 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 3121 IH (2) Section 62(b)(a) of such Code is amended 1 by inserting ‘‘and’’ at the end of subparagraph (A), 2 by striking ‘‘, and’’ at the end of subparagraph (B) 3 and inserting a period, and by striking subparagraph 4 (C). 5 Æ VerDate Sep 11 2014 16:51 Jun 12, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H3121.IH H3121 pamtmann on DSKBFK8HB2PROD with BILLS