A bill 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 renumeration, and for other purposes.

This bill changes the tax rules for professional sports franchises in the United States. It was introduced in the Senate by Mr. Warnock and Mrs. Britt on September 30, 2026. The legislation amends the Internal Revenue Code of 1986 regarding the deduction limits for certain employee pay. Specifically, it excludes individuals who perform services in the field of athletics from being counted among the highest compensated employees for these tax deduction limits. These changes are set to apply to taxable years beginning after December 31, 2026.