Income Taxes; taxable net income compensation of athletes for the use of the athlete's name, image, or likeness; exempt
Summary
SB 71 amends Georgia’s income tax code to exclude certain name, image, and likeness (NIL) compensation from taxable net income. Specifically, it adds a new subtraction from Georgia taxable income for income received by a student athlete at a postsecondary educational institution under Code Section 20-3-681, when that income is paid for the use of the athlete’s name, image, or likeness and is already included in federal adjusted gross income.
The bill applies beginning with taxable years on or after January 1, 2025. It does not create a new NIL compensation program or change eligibility rules for athletes; rather, it changes how Georgia treats this income for state tax purposes. The measure also includes a standard repeal of conflicting laws.
Impact
SB 71 would reduce Georgia taxable income for qualifying student-athletes receiving NIL compensation, thereby lowering or eliminating state income tax liability on that income to the extent it is otherwise taxable federally. It amends Code Section 48-7-27 in Title 48, Chapter 7, and affects student-athletes at postsecondary educational institutions who receive NIL payments under Georgia law. The bill is prospective only, applying to tax years beginning on or after January 1, 2025.
Sentiment
The available record shows no committee transcript, vote tally, or recorded debate, so there is no direct evidence of opposition or support from the legislative process in the materials provided. Based on the bill’s subject matter and narrow scope, it appears to be a targeted tax relief measure for student-athletes rather than a broader tax overhaul. The absence of recorded votes or discussion means sentiment cannot be measured from the provided context.
Contention
No specific points of contention are documented in the provided materials. Potential areas of debate, if any, would likely center on whether NIL income should receive a special state tax exemption, whether the exemption creates unequal treatment compared with other taxpayers or student workers, and the fiscal impact on state revenue. However, none of these concerns are explicitly raised in the available transcript or voting history.
Authorizes an individual income tax deduction for compensation earned by certain intercollegiate athletes for use of their name, image, or likeness (OR DECREASE GF RV See Note)
Authorizes income tax deductions for income earned by an intercollegiate athlete and compensation paid by a taxpayer for use of an intercollegiate athlete's name, image, or likeness (OR DECREASE GF RV See Note)