Bill · H.R. 10682· House(119-HR-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.
- Introduced
- 10/1/2026
- Last activity
- 10/1/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Nicole Malliotakis
- Cosponsors
- - 1 - 2
- Introduced
- In Committee
What this bill would do
This bill is about changing how professional sports franchises are taxed regarding employee pay deductions. It was introduced in the House of Representatives by Ms. Malliotakis along with three other members. The text updates the Internal Revenue Code of 1986. Specifically, it changes the rules for who counts as one of the highest-compensated employees whose pay has deduction limits. These new rules are set to apply to taxable years starting after December 31, 2026.
Yes
Does this cut taxes for small businesses?+3
The bill provides targeted tax deduction relief related to employee remuneration that may benefit certain franchise-oriented business structures.
Would business owners be better off under this?+3
Professional sports franchise owners benefit from parity in tax deductions for employee remuneration.
Does this make it easier to run a small business?+2
By modifying taxation rules for professional sports franchises regarding employee pay deductions, it offers minor operational clarity for sports businesses.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Section 1(a): This part updates the tax code to exclude individuals who perform services in the field of athletics from being counted among the five highest-compensated employees under specific deduction limits. This could be seen as positive for professional sports franchises because it provides parity in how they are taxed regarding employee pay deductions.
Potential Negative Impacts for People
- Section 1(c): This section states that the new tax rules will apply to taxable years beginning after December 31, 2026. The provided text does not mention any specific negative consequences or burdens for individuals or groups of people resulting from this timeline.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Reduces Small Business Taxes+3Improves Small Business Support+2
- Demographic And Interest Groups
- Good For Business Owners+3
- 10/1/2026
- Referred to the House Committee on Ways and Means.
- 3 Cosponsors added.
- Introduced in House
Brian JackRepublican · Georgia
Lucy McBathDemocrat · Georgia
Thomas SuozziDemocrat · New York