It Just Means More: Alabama Lawmakers Want To Make NIL Earnings Exempt From Income Taxes To Create a Recruiting Advantage
247Sports — A new bill could aid the recruiting and roster management efforts of Alabama's Kalen DeBoer and other college coaches in the state.
State representative Joe Lovvorn of Auburn is seeking to create what he says is a "competitive edge" for college athletes in Alabama by making their name, image and likeness earnings exempt from Alabama's individual income tax.
Lovvorn introduced House Bill 240, the Competitive Edge NIL Tax Cut Act, on Tuesday.
Representatives Danny Garrett (R-Trussville) and Chris Blackshear (R-Phenix City) helped write the bill.
The bill, if it is signed into law, would go into effect on October 1. It would apply retroactively to Jan. 1, 2025, and remain in effect through the end of 2027.
Never tell me there is anything like SEC football until you can find me another example of politicians going out of their way to take away existing income taxes for certain individuals so their state's schools get a leg up in recruiting. This is the greatest league in the world.
I guess it's not even really a leg up if you're Alabama and Auburn, because you're just trying to get even with schools in Florida, Texas and Tennessee which already don't have state income tax. But there are not very many institutions in the country that could get lawmakers to get rid of existing tax revenue. If Lincoln Riley took something like this to the California state legislature, I'm pretty sure he would be arrested and sent to San Quentin.
As we now get several years into the whole NIL landscape and kids get smarter about the money they can earn in college, this obviously has to be a factor. If you're a five-star prospect with relatively equal offers on the table from Alabama, Tennessee and Florida, picking the Tide out of that group could mean paying $500,000 more in income taxes over the three or four years you're in school. Couple that with Nick Saban now spending his Saturdays on College Gameday and you have a problem all of a sudden.
I think some people in the Alabama legislature need to stand up for what is right and make sure everyone is paying their fair share. We can't let our states' government become beholden to such trivial pursuits as college football. Tax the rich.