Passing a state income tax exemption on the name, image, and likeness (NIL) for student athletes is likely not happening in the 2025 legislative session, according to State Sen. Sam Givhan (R-Huntsville).
State Rep. Joe Lovvorn (R-Auburn) introduced HB 240, the Competitive Edge NIL Tax Cut Act, in February. The bill would exempt compensation earned by student-athletes for using their NIL from the state's individual income tax.
The House passed a four bill tax cut package last week. However, the NIL Tax Cut Act hasn’t received a public hearing or vote in committee since being filed. Legislators also haven’t acted on extending the state’s overtime pay tax exemption for hourly workers set to sunset in June.
Givhan, the Senate sponsor of the overtime pay tax exemption passed in 2023, said during an interview on WVNN's "The Dale Jackson Show” on Thursday, “I think this NIL being tax-free, I think that issue is dead.”
“I haven’t heard anything about that lately but there were some people that work by the hour that were pretty upset about that with how we were going to give a tax break to kids playing college football as they used to do for scholarships and $100 bills under their dorm room doors and now they get paid big bucks to do it. So, there’s some competing tensions out there for sure,” Givhan said.
To connect with the author of this story or to comment, email [email protected].
Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.
