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Pay Local Musicians Tax Break

Official:Amending Chapter 19-2600 of The Philadelphia Code, entitled “Business Income and Receipts Taxes,” by creating a tax credit to encourage certain merchants to utilize the services of Philadelphia-based performing artists, all under certain terms and conditions.

Sponsor: Councilmember Thomas

Introduced: June 12, 2025

: Committee on Finance

business historic preservation taxation

Plain-Language Summary

This bill proposes a tax credit for merchants who hire Philadelphia-based performing artists.

What This Bill Does

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Creates a tax credit for qualifying merchants who hire Philadelphia-based performing artists.
Defines the following terms: * Qualifying Merchant: businesses in the following industries: hotels (except casino hotels), full-service restaurants, and limited-service restaurants. * Performing Artist: individuals who derive at least $5,000 in gross income or 15% of their total gross income from the creation, performance, or teaching of work in the performing arts. * Performing Arts Organization: businesses that meet specific NAICS codes for musical groups and artists or independent artists, writers, and performers. * Philadelphia-based Performing Artist: a performing artist who maintains a primary residence in Philadelphia. 3.

Both Sides

AI-written arguments. Every figure is checked against the bill text.

The case for

This bill supports Philadelphia's creative economy by incentivizing local businesses to hire city-based performing artists, defined as those who derive at least 15% of their income from the performing arts and live in Philadelphia. This benefits merchants in hotels, full-service and limited-service restaurants, who can claim a tax credit for hiring qualified performers. By doing so, the bill boosts local economic development by fostering partnerships between businesses and Philadelphia-based artists, thereby strengthening the city's performing arts community.

The case against

This bill unfairly burdens taxpayers to fund a selective economic incentive that benefits only a small group of merchants and performing artists. By requiring businesses to comply with the new definitions and reporting requirements, the city will incur additional administrative costs and enforcement burdens, while also shifting the financial burden onto taxpayers to cover the estimated tax credits.

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