H.R. 721 — Performing Artist Tax Parity Act of 2025

This section modifies the above-the-line deduction for unreimbursed employee business expenses of qualified performing artists, effective for taxable years beginning after December 31, 2024, by (1) establishing a phaseout that reduces the allowable expenses (but not below zero) by 10 percentage points for each $2,000 ($4,000 for joint returns), or fraction thereof, by which the taxpayer's gross income exceeds $100,000 ($200,000 for joint returns)—with both dollar amounts adjusted annually for inflation after 2025 using a cost-of-living adjustment based on calendar year 2024; (2) clarifying that deductible expenses include commissions paid to the performing artist's manager or agent; (3) increasing the minimum compensation threshold for treating an employer as nominal to $500 (from $200)—adjusted annually for inflation after 2025 using a cost-of-living adjustment based on calendar year 2024; and (4) making conforming amendments.