I 118TH CONGRESS 1ST SESSION H. R. 2871 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 APRIL 26, 2023 Mr. BUCHANAN (for himself and Ms. CHU) 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 2023’’. 5 VerDate Sep 11 2014 04:41 May 04, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2871.IH H2871 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 2871 IH SEC. 2. ABOVE-THE-LINE DEDUCTION OF EXPENSES OF 1 PERFORMING ARTISTS. 2 (a) IN GENERAL.—Section 62(a)(2)(B) of the Inter- 3 nal Revenue Code of 1986 is amended— 4 (1) by striking ‘‘PERFORMING ARTISTS.—The 5 deductions’’ and inserting the following: ‘‘PER- 6 FORMING ARTISTS.— 7 ‘‘(i) IN GENERAL.—The deductions’’, 8 and 9 (2) by adding at the end the following new 10 clauses: 11 ‘‘(ii) PHASEOUT.—The amount of ex- 12 penses taken into account under clause (i) 13 shall be reduced (but not below zero) by 10 14 percentage points for each $2,000 ($4,000 15 in the case of a joint return), or fraction 16 thereof, by which the taxpayer’s gross in- 17 come for the taxable year exceeds 18 $100,000 (200 percent of such amount in 19 the case of a joint return). 20 ‘‘(iii) COST-OF-LIVING ADJUST- 21 MENT.—In the case of any taxable year be- 22 ginning in a calendar year after 2023, the 23 $100,000 amount under clause (ii) shall be 24 increased by an amount equal to— 25 VerDate Sep 11 2014 04:41 May 04, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2871.IH H2871 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 2871 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 2022’ 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) INCREASE IN THRESHOLD FOR DETERMINING 20 NOMINAL EMPLOYERS.—Section 62(b)(2) of such Code is 21 amended— 22 (1) by striking ‘‘An individual’’ and inserting 23 the following: 24 ‘‘(A) IN GENERAL.—An individual’’; 25 VerDate Sep 11 2014 04:41 May 04, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2871.IH H2871 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 2871 IH (2) by striking ‘‘$200’’ and inserting ‘‘$500’’, 1 and 2 (3) by adding at the end the following new sub- 3 paragraph: 4 ‘‘(B) COST-OF-LIVING ADJUSTMENT.—In 5 the case of any taxable year beginning in a cal- 6 endar year after 2023, the $500 amount under 7 subparagraph (A) shall be increased by an 8 amount equal to— 9 ‘‘(i) such dollar amount, multiplied by 10 ‘‘(ii) the cost-of-living adjustment de- 11 termined under section 1(f)(3) for the cal- 12 endar year in which the taxable year be- 13 gins, determined by substituting ‘calendar 14 year 2022’ for ‘calendar year 2016’ in sub- 15 paragraph (A)(ii) thereof. 16 If any amount after adjustment under the pre- 17 ceding sentence is not a multiple of $50, such 18 amount shall be rounded to the nearest multiple 19 of $50.’’. 20 (d) CONFORMING AMENDMENTS.— 21 (1) Section 62(a)(2)(B)(i) of such Code, as 22 amended by the preceding provisions of this Act, is 23 amended by striking ‘‘by him’’ and inserting ‘‘by the 24 performing artist’’. 25 VerDate Sep 11 2014 04:41 May 04, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2871.IH H2871 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 2871 IH (2) Section 62(b)(1) 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 (e) EFFECTIVE DATE.—The amendments made by 6 this section shall apply to taxable years beginning after 7 December 31, 2022. 8 Æ VerDate Sep 11 2014 04:41 May 04, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H2871.IH H2871 pbinns on DSKJLVW7X2PROD with $$_JOB