House Bill No. by Representative McMakin proposes to amend existing tax law to allow an individual income tax deduction for compensation earned by intercollegiate athletes for the use of their name, image, or likeness while attending a postsecondary education institution. The bill specifically adds new definitions and provisions under R.S. 47:293(9)(a)(ii) and R.S. 47:297.6, stating that the deduction will equal the actual amount of compensation earned by the athlete. It also defines "intercollegiate athlete" and "postsecondary education institution," ensuring that the deduction applies only to institutions that receive or disburse state financial assistance.

Additionally, the bill outlines certain limitations on the deduction, excluding compensation related to endorsements of tobacco, alcohol, illegal substances, or gambling, as well as any compensation earned beyond the athlete's participation in an athletic program. The Secretary of the Department of Revenue is authorized to create rules and regulations to implement these provisions. The new law will take effect on January 1, 2026, and will apply to compensation earned from that date forward.

Statutes affected:
HB166 Original: 47:293(10)