WASHINGTON — Today, Congressman Vern Buchanan and Congresswoman Judy Chu announced that they introduced the Performing Arts Tax Parity Act (PAPTA) to help struggling actors and performers. This legislation updates the existing Qualified Performing Artist (QPA) tax deduction originally signed into law by President Reagan in 1986 to adjust for increased cost of living.
“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.”
“Creative professionals are found in every state and congressional district in the country and most are middle and working class, not A-list stars. 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,” said Rep. Chu.
Sens. Mark Warner and Thom Tillis introduced companion legislation to PAPTA during the 118th Congress.
Since being signed into law in 1986 by President Reagan, the tax code has allowed working artists the ability to take an above-the-line tax deduction for much-needed 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, Buchanan’s bill 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. PAPTA 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 Motion Picture Association, the International Alliance of Theatrical Stage Employees (IATSE), 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 Actors’ Equity Association, the America Federation of Musicians (AFM), the Department for Professional Employees, AFL-CIO (DPE) and the Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA).
“Across the country, the film, television, and streaming industry supports more than 2.32 million high-quality, high-paying jobs -- and the Performing Artist Tax Parity Act (PATPA) strengthens the pocketbooks and economic security of the entire creative workforce. The MPA thanks Reps. Chu and Buchanan for their commitment to the creative community and is again proud to endorse this bipartisan legislation,” said Charlie Rivkin, Chairman and CEO, MPA.
“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).
“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.
“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).
“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, Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA).
Buchanan is the vice chairman and most senior Republican on the powerful U.S. House Ways and Means Committee, which has jurisdiction over tax policy.
