To Help Struggling Actors and Performers, Reps. Chu, Buchanan Introduce Bipartisan Tax Legislation
Updates Performing Artist Tax Deduction for 21st Century
WASHINGTON, D.C. — Today, Reps. Judy Chu (CA-28) and Vern Buchanan (FL-16) announced that they reintroduced the Performing Arts Tax Parity Act (PAPTA) to help struggling actors and performers. This legislation updates the existing Qualified Performing Artist (QPA) tax deduction to once again allow working class actors and performers to deduct the costs of work-related expenses. This will be especially impactful for performing artists who have lost everything in the Eaton and Palisades Fires and will need to rebuild studios and replace destroyed equipment in places like Altadena, which has long been a hub for working-class performing artists.
“Creative professionals are found in every state and congressional district in the country and most are middle and working class, not A-list stars,” said Rep. Chu. “In this demanding industry, working class entertainers shouldn't have to choose between meeting their basic needs and paying for essential business expenses like transportation, a talent agent, or equipment. Congressman Buchanan and I are introducing the Performing Arts Tax Parity Act so that entertainment professionals get the tax relief they deserve and can continue inspiring Americans around the country.”
“An overwhelming majority of performing artists are lower-income and middle-class Americans struggling to make ends meet,” said Buchanan. “Performing artists are an asset to our community, and they should not have to choose between paying for work-related expenses and their basic needs. I’m proud to once again join Congresswoman Chu to lead this bipartisan effort to update this 40-year-old law to deliver needed tax relief for performing artists in Southwest Florida and across the country.”
Sens. Mark Warner (VA) and Thom Tillis (NC) introduced companion legislation to PAPTA during the 118th Congress.
The Tax Cuts and Jobs Act eliminated the ability to claim miscellaneous itemized deductions, which previously allowed artists to deduct their work expenses. As a result, performing artists, who often spend up to one-third of their gross income on work-related expenses, have paid thousands more in tax each year. Since 1986, the tax code has allowed working artists the ability to take an above-the-line tax deduction for work-related expenses. However, this provision, which enjoys broad bipartisan support, has not been updated since its inception nearly four decades ago. Today, it is only available to those making less than $16,000 a year.
Under current law, a Qualified Performing Artist is defined as having: 1) performed services in the performing arts for, at minimum, two different employers during a taxable year, 2) an amount of allowable deductions exceeding 10 percent of their gross income related to those services and 3) an adjusted gross income of no more than $16,000.
To better reflect today’s cost of living, this legislation would update and increase the income ceiling to reflect today’s cost of living more appropriately: $100,000 for individuals and $200,000 for married joint filers. PATPA includes an automatic Consumer Price Index for All Urban Consumers (CPI-U) increase to ensure that the deduction remains relevant as the cost of living increases in the future.
This legislation is supported by the Actors’ Equity Association, the International Alliance of Theatrical Stage Employees (IATSE), the Motion Picture Association, Americans for the Arts, the League of American Orchestras, the Theatre Communications Group, the National Independent Venue Association, the Recording Industry Association of America (RIAA), the America Federation of Musicians (AFM) and the Department for Professional Employees, AFL-CIO (DPE), and SAG-AFTRA.
“We have entered yet another tax season with a policy that unfairly penalizes arts professionals. We thank Representatives Chu and Buchanan for once again introducing a bipartisan bill that will mean that actors, stage managers and their colleagues no longer have to pay hundreds, and sometimes thousands of dollars more in taxes simply due to baseline costs of working in this industry. This was an oversight in tax reform that can be remedied with a simple fix. That needs to happen this year,” said Brooke Shields, President, Actors’ Equity Association.
“All of us at SAG-AFTRA are grateful for Reps. Vern Buchanan and Judy Chu for reintroducing the Performing Arts Tax Parity Act. This is an essential piece of bipartisan legislation that addresses the skyrocketing business costs for journeyman performers, allowing them to deduct their legitimate expenses such as agent and manager fees. This allows actors to remain working in this highly risky profession while supporting the wider economy that generates income from the entertainment industry. Thank you Reps. Buchanan and Chu for helping working class actors as they navigate the financial challenges of the film and television business,” said Fran Drescher, President, SAG-AFTRA.
“I commend Reps. Buchanan and Chu for reintroducing the Performing Artist Tax Parity Act (PATPA) at the start of the 119th Congress. They have been persistent in their determination to pass this legislation. It’s time to lower the cost of living for entertainment workers by including PATPA in tax legislation expected later this year, correcting an oversight that has taken money out of the pockets of middle-class IATSE members since 2017. In that time, IATSE members have endured a global pandemic, a months-long industry work stoppage, and contraction in film and television production in the United States – each further compounding the financial hardship felt by so many. We look forward to locking arms with our Congressional champions to achieve this goal,” said Matthew D. Loeb, International President, IATSE.
“We are grateful to Representative Buchanan and Representative Chu for re-introducing the bipartisan Performing Artist Tax Parity Act into the 119th Congress,” said Jamie Bennett, co-CEO, Americans for the Arts. “This bill will allow employee-based artists to deduct their un-reimbursed business expenses,” added Suzy Delvalle, co-CEO, Americans for the Arts. “Artists are the center of our nation’s cultural sector, which adds more than $1 trillion to our nation’s GDP each year. With the tax fairness and tax relief for work-related expenses provided by the Performing Artist Tax Parity Act, artists and creators across a wide spectrum can be fully acknowledge as contributors to our economy.”
“Musicians are essential contributors to the U.S. workforce and the communities in which they live. We are grateful for Reps. Buchanan and Chu for re-introducing this critical legislation to support tax fairness for performing artists,” said Simon Woods, President and CEO, League of American Orchestras.
“Theatre artists bear unique and significant expenses to continue fostering dialogue, reflection, and creativity on stages across the nation at great personal financial sacrifice. Their contributions not only unite audiences but also fuel economic growth in communities nationwide. Theatre Communications Group proudly supports the Performing Arts Parity Tax Act, a critical tax correction that will return essential resources to these working artists,” said Erica Lauren Ortiz, Interim Senior Programmer, Advocacy & Governance, Theatre Communications Group.
“This legislation is a lifeline for the artists who bring independent stages to life. This bill is an important step toward building a fairer, more sustainable live ecosystem that benefits independent stages, artists, audiences, and communities alike,” said Stephen Parker, Executive Director, National Independent Venue Association.
“The creative community drives culture and economy, and we appreciate the thoughtful leadership of Representatives Buchanan (R-FL) and Chu (D-CA) keeping the bipartisan Performing Artist Tax Parity Act as a priority. Understanding the unique contributions and challenges performers face, this legislation would establish more balanced tax rules that foster new generations of stars and allow for more jobs in music,” said Mitch Glazier, Chairman and CEO, Recording Industry Association of America (RIAA).
“The bipartisan Performing Artist Tax Parity Act will make a tangible difference in the lives of working musicians. We are grateful to Congressman Buchannan and Congresswoman Chu for keeping the drumbeat going on this commonsense update to our tax code. The arts are an economic driver. Musicians and all performing artists and arts workers deserve the fairness PATPA provides,” said Tino Gagliardi, President, America Federation of Musicians (AFM).
“PATPA is a top priority for DPE and our Arts, Entertainment, and Media Industry (AEMI) union coalition because it will ensure middle class, creative professionals can deduct necessary work expenses by updating the Qualified Performing Artist Tax deduction’s eligibility standards for today’s economy. We commend Representatives Buchanan and Chu for re-introducing this important legislation, which will put money back in the hands of hard-working, everyday professionals and reduce barriers to securing employment,” said Jennifer Dorning, President, Department for Professional Employees, AFL-CIO (DPE).
"The reintroduction of the Performing Artist Tax Parity Act (PATPA) is a critical step toward restoring financial fairness for performing artists across the country. For too long, we've been unfairly burdened by a tax system that fails to recognize the realities of our profession. This legislation paves the way for artists to be treated less like expendable contractors and more like the vital parts of an institution that we are. It's an important step toward ensuring that performing artists are no longer penalized for the cost of doing our jobs and toward a future where we receive the same workplace protections and benefits as others who work within the companies we sustain," said President Ned Hanlon of the American Guild of Musical Artists (AGMA).