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Representative Joe Lovvorn, R-Auburn, has introduced HB240, the Competitive Edge NIL Tax Cut Act, which would exempt any compensation earned by student-athletes for the use of their name, image and likeness from the state’s individual income tax.
“One common thread shared among Alabamians is their love for collegiate athletics,” said Rep. Lovvorn. “Alabama is proudly home to many of the nation’s top programs, and celebrating their success is a central part of our state’s identity. As NIL continues to change the landscape of college sports, the state must work to foster an environment that helps our schools land America’s top recruits. Exempting NIL earnings from state income tax gives Alabama a competitive edge, leading to more students receiving a quality education here and more championships coming home to Alabama.”
Alabama was one of the first states to enact legislation allowing student-athletes to profit from their name, image and likeness. The Competitive Edge NIL Tax Cut Act reaffirms Alabama’s commitment to ensuring its college and university athletic programs are positioned for success.
“A few years ago, the State Legislature passed a bill that, at the time, firmly placed Alabama at the forefront of NIL but later proved to be too restrictive after the U.S. Supreme Court handed down its ruling in NCAA v. Alston,” said Rep. Danny Garrett, R-Trussville, who chairs the House Ways and Means Education Committee. “The status of NIL can change rapidly, so it is important for this legislation to include a sunset provision. I am proud to support this bill to ensure that Alabama’s colleges and universities remain competitive at the national level.”
Rep. Chris Blackshear, R-Phenix City, helped identify the need for this legislation and assisted in its drafting.
“One thing has become clear over the last four years in college sports: the teams that best utilize NIL will be the teams that compete for championships,” said Rep. Blackshear. “Recruiting top athletes has become similar to attracting top businesses – you need to offer the best facilities, incentives and opportunities for success. This legislation gives Alabama’s colleges and universities another useful tool to best represent our state on the national stage.”
