This bill, known as the "Performing Artist Tax Parity Act of 2025," amends the Internal Revenue Code to modify the above-the-line deduction for expenses incurred by performing artist employees. It establishes a new phaseout for this deduction, reducing the amount by 10 percentage points for each $2,000 (or fraction thereof) that a taxpayer's gross income exceeds $100,000 ($200,000 for joint filers). This income threshold will be adjusted annually for inflation starting in 2025. The legislation also explicitly clarifies that commissions paid to a performing artist's manager or agent are included as deductible expenses. Furthermore, it increases the threshold for determining a nominal employer from $200 to $500, which is a criterion for qualifying for the deduction. This new $500 threshold will also be subject to cost-of-living adjustments, with all amendments applying to taxable years beginning after December 31, 2024.