21-04-2025
Louisiana bills propose NIL tax breaks for college athletes, new limits for international players
BATON ROUGE, La. (Louisiana First) — A Louisiana lawmaker wants to let college athletes deduct income from name, image and likeness (NIL) deals from their state taxes.
House Bill 166, authored by Rep. Dixon McMakin (R-Baton Rouge), would create a state tax deduction for NIL compensation earned by student-athletes.
The deduction would apply only to athletes at Louisiana public universities and private colleges that receive state funding. It would not cover NIL income related to tobacco, alcohol, illegal substances or activities, gambling, sports betting, or earnings unrelated to college athletic participation.
According to the bill, the deduction amount would be equal to the NIL compensation earned. If passed, the deduction would apply to income earned on or after Jan. 1, 2026.
A second proposal focused on student-athletes is advancing in the Senate. Senate Bill 200, sponsored by Sen. Jeremy Stine (R-Lake Charles), would restrict international college athletes from receiving scholarships or earning NIL income unless they are permanent U.S. residents.
The bill would cap scholarships for foreign students at 25% of a program's total per school year. It also states that international athletes would not be eligible for scholarships if they have received financial assistance from a professional sports organization.
Additionally, the bill proposes banning NIL participation for international students unless they hold permanent resident status.
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