Authorizes an individual income tax deduction for compensation earned by certain intercollegiate athletes for use of their name, image, or likeness (OR DECREASE GF RV See Note)
Impact
If passed, HB 166 would modify existing Louisiana tax law by allowing eligible intercollegiate athletes to deduct earnings associated with their name, image, or likeness from their taxable income. This legislation could pave the way for greater financial independence for student-athletes, reflecting the national trend towards allowing athletes to monetize their personal brands. However, the bill explicitly prohibits deductions for earnings derived from endorsements associated with activities that are illegal or prohibited under relevant state laws, thus ensuring that the framework remains aligned with regulations governing student-athlete behavior.
Summary
House Bill 166, introduced by Representative McMakin, seeks to authorize an individual income tax deduction for compensation earned by intercollegiate athletes for the use of their name, image, or likeness while attending postsecondary educational institutions in Louisiana. By defining 'intercollegiate athlete' as students participating in athletic programs at public or private postsecondary institutions that receive state financial assistance, the bill aims to allow these athletes to benefit financially from their personal brand while still pursuing their education. The deduction applies to compensation earned from January 1, 2026, onwards, marking an important shift in how the state recognizes and supports its student-athletes.
Sentiment
The sentiment surrounding HB 166 appears to be largely positive, especially among supporters advocating for the rights of student-athletes to earn from their likenesses. Proponents argue that this kind of legislation recognizes the contributions of student-athletes and provides them with opportunities to receive compensation that reflects their unique value. However, there are concerns, particularly regarding how institutions will manage these earnings and the implications such financial opportunities might have on academic performance and student welfare.
Contention
Notable points of contention may arise from the bill's implications on the relationships between institutions and student-athletes, specifically in how the revenue and earnings from name, image, or likeness are regulated. Some may argue that there could be potential disparities in the income earned by athletes based on the fame of their programs or sports, leading to a debate over equity and fairness. Additionally, concerns about maintaining academic integrity and the potential for exploitation through lucrative endorsements could emerge as this bill progresses through the legislative process.
Provides for a flat rate for purposes of calculating income tax for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits (Item #5 and 6) (RE1 DECREASE GF RV See Note)
Provides for a flat rate for purposes of calculating income tax for individuals, estates, and trusts and modifies certain income tax deductions and credits (OR +$19,000,000 GF RV See Note)
Provides for the rate of the state sales and use tax and for exemptions, exclusions, credits, and rebates claimed against sales and use taxes; and provides for a flat rate of income tax for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits (Items #5, 6, and 8) (EN SEE FISC NOTE RV See Note)
Provides relative to the compensation of intercollegiate athletes for the use of their name, image, or likeness. (gov sig) (EN INCREASE SG EX See Note)