Govwatch

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10682 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                               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.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 2026

 Ms. Malliotakis (for herself, Mr. Suozzi, Mr. Jack, and Mrs. McBath) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 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 remuneration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ESTABLISHING PARITY IN TAXATION OF PROFESSIONAL SPORTS 
              FRANCHISES.

    (a) In General.--Section 162(m)(3)(C) of the Internal Revenue Code 
of 1986 is amended to read as follows:
                    ``(C) such employee is among the 5 highest 
                compensated employees for the taxable year other than--
                            ``(i) any individual described in 
                        subparagraph (A) or (B), or
                            ``(ii) any individual who performs services 
                        in the field of athletics (within the meaning 
                        of section 1.199A-5(b)(2)(viii) of title 26, 
                        Code of Federal Regulations (as in effect on 
                        the date of the enactment of this 
                        subparagraph)) for the taxpayer, or''.
    (b) Technical Amendment.--Section 162(m)(3)(D) of such Code is 
amended by inserting ``such employee'' before ``was a covered 
employee''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.
                                 <all>
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.

Full Text
