Alabama Following Georgia's Lead to Exempt NIL Money from State Income Taxes

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Alabama lawmakers have cooked up a plan to recruit more athletes to the state and win more championships, by tempting top prospects with tax breaks on the money they take in for name, image and likeness.

Rep. Joe Lovvorn, R-Auburn, introduced HB240, the Competitive Edge NIL Tax Cut Act, in the Alabama House of Representatives on Tuesday. This would exempt student athletes from paying state income tax on the money they earn through NIL deals.

“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,” Rep. Lovvorn said in a statement. “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.”

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https://www.al.com/sports/2025/02/co...ecruiting.html

I'm guessing we're going to see something like that in the upcoming Louisiana Legis session. Exempt college athletes from having to pay state income taxes on their NIL deals, while the kid washing dishes at Pizza Village to work his/her way through school, or the kid being paid $12/hour by the university to tutor said athletes in study hall has to pay state income taxes on their earnings.

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Originally Posted by Cajunrunner

https://www.al.com/sports/2025/02/co...ecruiting.html

I'm guessing we're going to see something like that in the upcoming Louisiana Legis session. Exempt college athletes from having to pay state income taxes on their NIL deals, while the kid washing dishes at Pizza Village to work his/her way through school, or the kid being paid $12/hour by the university to tutor said athletes in study hall has to pay state income taxes on their earnings.

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Priorities. The South makes fun of the government silliness that goes on in places like California (and rightly so), but they show their stupidity just the same.

That’s a no vote here. I’m done with exemptions upon exemptions. What was Huey’s line, “No taxes for me, tax the fellow behind the tree”, or something like that.

But then again, were we not getting rid of state income tax?

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Originally Posted by ZoomZoom

That’s a no vote here. I’m done with exemptions upon exemptions. What was Huey’s line, “No taxes for me, tax the fellow behind the tree”, or something like that.

But then again, were we not getting rid of state income tax?

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I think Louisiana may be doing a “phase out”. The current plan, though, is a lower income tax rate with additional state sales taxes.

I thought going to college was supposed to prepare kids for the "real world"!!! I guess not anymore.

This is some bull____.

Im more interested in the disconnect from admitting that no income tax is good for the economy but lets not do it for the bigger economy

Taxpayers/voters should be outraged and make their voices heard. Giving tax breaks to NIL recipients reeks of government being out of touch with the needs of their constituents. You're telling me that those tax dollars aren't needed for infrastructure projects? If Louisiana were to attempt passing similar legislation, we should all be ready to contact our legislators.

Hard NO!!!

This is our priority today in this country. How about tax breaks for businesses and hard working citizens. It's pretty sad what we prioritize. Bread and Circus.