MONTGOMERY — State Rep. Joe Lovvorn (R-Auburn) introduced on Tuesday HB 240, the Competitive Edge NIL Tax Cut Act, which would exempt compensation earned by student-athletes for the use of their name, image and likeness (NIL) from the state's individual income tax.
"One common thread shared among Alabamians is their love for collegiate athletics," Lovvorn said. "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 among the first states to enact legislation allowing student-athletes to profit from NIL.
"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," State Rep. Danny Garrett (R-Trussville) said. "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."
State Rep. Chris Blackshear (R-Phenix City) is also a co-sponsor of the bill 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," Blackshear said. "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."
To connect with the story's author or comment, email caleb.taylor@1819News.com.
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