The Performing Artist Tax Parity Act (PATPA) would provide much needed tax relief to middle-class performing artists who are no longer able to deduct the necessary expenses they spend in order work after the dissolution of miscellaneous itemized tax deduction. On average, a performer spends 20 to 30 percent of their income on expenses such as travel, an agent and headshots. Since performers are artists and not contractors, they no longer have an avenue to deduct these costs. PATPA provides a commonsense solution to this problem by updating the Qualified Performing Artists deduction (QPA), something that has not been done since 1986.
The state of Tennessee has one of the highest concentrations of music groups and artists in the United States. In Nashville alone, a study of the music and entertainment industry done in conjunction with the Nashville Area Chamber of Commerce shows it has a $10 billion annual economic impact on the region. The report also found that the greater Nashville area has more music industry jobs than any other U.S. city in the relation to population and total employment, even more than New York or Los Angeles. The music industry helps create and sustain more than 56,000 jobs in the region, supporting more than $3.2 billion of labor income annually. The passage of PATPA would greatly benefit many of these middle-class musicians and artists in The Volunteer State.
Senator Hagery understood the need for PATPA and we appreciate his leadership joining as an original co-sponsor in the Senate. Please call his office at (615) 736-5129 or email and thank him for his efforts on our behalf and encourage him to work with his colleagues to include PATPA in any end of the year spending bill.