H.R. 10682
To amend the Internal Revenue Code of 1986 to provide parity in the taxation of professional sports franchises under the limitation on the deduction for certain employee remuneration, and for other purposes.
Summary:
• Amends the Internal Revenue Code of 1986 to create parity in how professional sports franchises are taxed under the limitation on deductions for certain employee compensation
• Excludes athletes (individuals who perform services "in the field of athletics") from the definition of the 5 highest-compensated employees when determining which employees' compensation is subject to the deduction limitation under Section 162(m)
• The changes apply to taxable years beginning after December 31, 2026
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• Excludes athletes (individuals who perform services "in the field of athletics") from the definition of the 5 highest-compensated employees when determining which employees' compensation is subject to the deduction limitation under Section 162(m)
• The changes apply to taxable years beginning after December 31, 2026
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