To amend the Internal Revenue Code of 1986 to provide parity in the taxation of professional sports franchises under the limitation on the deduction for certain employee remuneration, and for other purposes.

This bill changes a federal tax rule that limits how much pay a company can deduct as a business expense for certain highly paid employees. Under the rule, one group of covered employees is the 5 highest-paid workers for the year, other than top executives. The bill would leave people who perform services in the field of athletics, such as professional athletes, out of that group of 5 highest-paid employees. It also makes a small wording change to the law. The changes would apply to tax years beginning after December 31, 2026.

Full text and official record on Congress.gov

Sponsors

• Nicole Malliotakis Republican sponsor
• 9 cosponsors