Actors' Equity Association Welcomes Reintroduction Of Bipartisan Performing Artist Tax Parity Act In The Senate

Actors' Equity Association applauds the reintroduction of the bipartisan Performing Artist Tax Parity Act (PATPA) in the Senate by Sen. Mark Warner (D-VA) and Sen. Thom Tillis (R-NC).

This bill, like its companion introduced in the House earlier this month, corrects an unintended consequence of prior tax reform efforts, which led to tax increases for many performing artists who could no longer deduct the cost of their ordinary and necessary unreimbursed business expenses.

Working Theatre artists may typically spend 20 to 30 percent of their income on necessary expenses – such as to pay for travel to auditions or a talent agent – to stay in the business and to procure employment.

Actors' Equity Association President Brooke Shields offered a statement regarding this news:

“With just a few weeks until Tax Day, Senator Tillis and Senator Warner could not have better timed this critically important bipartisan bill that would mean actors, stage managers and other creative professionals won't have to pay hundreds, and sometimes thousands of dollars more in taxes simply due to common business costs like their agents and managers fees and travel to auditions. I'm grateful for the leadership of Senator Tillis and Senator Warner and look forward to working with them as we fight to make this bill law.”

“Middle class and up-and-coming artists have found their home in the Commonwealth making meaningful contributions to our rich culture,” Sen. Warner said. “This legislation levels the Playing Field for more artists by treating them like the small businesspeople they are, enriching our society and spurring our commerce.”

“The arts play a vital role in North Carolina's culture and economy, yet many artists struggle with financial burdens that make it difficult to sustain their careers,” Sen. Tillis said. “By updating this outdated tax deduction, this commonsense legislation ensures that hardworking artists can deduct necessary expenses, just like other professionals. I'm proud to support this bipartisan effort to provide long-overdue tax relief to the creative community.” 

A House version of the Performing Artist Tax Parity Act was introduced by Rep. Judy Chu (D-CA) and Vern Buchanan (R-FL) in January.

The legislation has been endorsed by a broad coalition of employers and unions, including The Broadway League, the League of Resident Theatres (LORT), the National Independent Venue Association (NIVA), Americans or the Arts, Recording Academy, American Federation of Musicians, SAG-AFTRA, IATSE and Department for Professional Employees, AFL-CIO.

While the 2019 tax reform bill did not harm high-income artists, many others in the industry have reported massive tax increases because they lost the ability to deduct their business expenses. “People sit with me and just break into tears because they didn't know what to do,” Sandra Karas, a tax attorney and secretary-treasurer of Actors' Equity Association, told the LA Times, which covered the devastating tax increases that hit performing artists.

The bill would update the bipartisan Qualified Performing Artist (QPA) deduction, which was originally signed into law by President Ronald Reagan. The QPA allows an above-the-line tax deduction for qualified performing artists but has been limited since it was enacted to a total adjusted gross income of the taxpayer to $16,000. PATPA would update the deduction to $100,000 for single filers and $200,000 for married artists filing jointly.