Federal

No Tax Subsidies for Stadiums Act of 2023

Source: Congress.gov · 344 words in original text

What This Bill Does

This bill changes federal tax law to stop treating bonds used to finance professional stadiums as tax-exempt bonds. Tax-exempt bonds allow organizations to borrow money without paying certain federal taxes. The bill removes this tax benefit specifically for professional sports stadiums.

Who It Affects

Organizations and entities that issue bonds to finance professional sports stadiums or arenas. Investors who buy these bonds. Professional sports teams and facilities that use these bonds for construction or improvements.

Key Provisions

• Bonds used to finance or refinance building costs for stadiums and arenas cannot be treated as tax-exempt bonds (Sec. 2(a)) • A "professional stadium bond" means any bond where the money is used to build or improve a facility that operates as a stadium or arena for professional sports exhibitions, games, or training for at least 5 days per calendar year (Sec. 2(b))

What Changes

Bonds issued after this law passes will no longer receive tax-exempt status if their money finances professional stadiums or arenas. This removes a financial advantage that previously made it cheaper for organizations to borrow money for these projects.

Important Definitions

Professional stadium bond: Any bond used to finance or refinance building costs for a facility that serves as a stadium or arena for professional sports exhibitions, games, or training at least 5 days per calendar year.

Effective Date

Bonds issued after the date this bill becomes law.

I 118TH CONGRESS 1ST SESSION H. R. 993 To amend the Internal Revenue Code of 1986 to ensure that bonds used to finance professional stadiums are not treated as tax-exempt bonds. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 14, 2023 Mr. BLUMENAUER 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 ensure that bonds used to finance professional stadiums are not treated as tax-exempt bonds. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘No Tax Subsidies for 4 Stadiums Act of 2023’’. 5 SEC. 2. NO TAX-EXEMPT BONDS FOR PROFESSIONAL STA- 6 DIUMS. 7 (a) IN GENERAL.—Section 103(b) of the Internal 8 Revenue Code of 1986 is amended by adding at the end 9 the following new paragraph: 10 VerDate Sep 11 2014 05:16 Mar 03, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H993.IH H993 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 993 IH ‘‘(4) PROFESSIONAL STADIUM BOND.—Any pro- 1 fessional stadium bond.’’. 2 (b) PROFESSIONAL STADIUM BOND DEFINED.—Sec- 3 tion 103(c) of such Code is amended by adding at the end 4 the following new paragraph: 5 ‘‘(3) PROFESSIONAL STADIUM BOND.—The 6 term ‘professional stadium bond’ means any bond 7 issued as part of an issue any proceeds of which are 8 used to finance or refinance capital expenditures al- 9 locable to a facility (or appurtenant real property) 10 which, during at least 5 days during any calendar 11 year, is used as a stadium or arena for professional 12 sports exhibitions, games, or training.’’. 13 (c) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to bonds issued after the date of 15 the enactment of this Act. 16 Æ VerDate Sep 11 2014 05:16 Mar 03, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H993.IH H993 kjohnson on DSK79L0C42PROD with BILLS

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