Musicians in the U.S. may be eligible for a significant tax relief thanks to an much-needed update to old legislation.

Navigating the financial landscape can be a complex and often challenging endeavour. Particularly as a musician, income can be sporadic and difficult to manage on a self-employed basis. Thankfully, there could be some very good news for musicians in the U.S.

The Performing Arts Tax Parity Act (PAPTA) brings much-needed modernity to the Qualified Performing Artist (QPA) tax deduction. The QPA became law in 1986, allowing artists to take an above-the-line tax deduction for work expenses. The deduction has not been updated since and has only been available to those making less than $16,000 a year.

Finally, a new bill aims to reflect current costs of living and inflation since 1986. The new income ceiling is $100,000 for individual artists, and $200,000 for married joint filers. This will provide huge relief to many working artists.

Additionally, PAPTA would introduce an automatic Consumer Price Index for All Urban Consumers This will provide an automatic annual adjustment to the income limit and ensure that the deduction remains relevant and effective as the cost of living continues to rise, preventing it from becoming obsolete like the current version.

Executive Director for the National Independent Venue Association, Stephen Parker said: “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.”

The act has been introduced to Congress and the industry eagerly awaits its progress. It is supported by the National Independent Venue Association, the Recording Industry Association of America (RIAA), the America Federation of Musicians (AFM)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 Actors’ Equity Association, and the Department for Professional Employees, AFL-CIO (DPE).