No Corporate Tax Exemption for Professional Sports Act

I 118TH CONGRESS 1ST SESSION H. R. 3908 To amend the Internal Revenue Code of 1986 to prohibit tax-exempt status for professional sports leagues. IN THE HOUSE OF REPRESENTATIVES JUNE 7, 2023 Mr. GARAMENDI (for himself, Ms. TLAIB, and Ms. BROWNLEY) 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 prohibit tax-exempt status for professional sports leagues. 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 Corporate Tax Ex- 4 emption for Professional Sports Act’’. 5 SEC. 2. SPECIAL RULES RELATING TO PROFESSIONAL 6 SPORTS LEAGUES. 7 (a) IN GENERAL.—Section 501 of the Internal Rev- 8 enue Code of 1986 is amended by adding at the end the 9 following new subsection: 10 VerDate Sep 11 2014 06:46 Jul 06, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3908.IH H3908 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 3908 IH ‘‘(s) SPECIAL RULES RELATING TO PROFESSIONAL 1 SPORTS LEAGUES.—No organization or entity shall be 2 treated as described in subsection (c)(6) if such organiza- 3 tion or entity— 4 ‘‘(1) is a professional sports league, organiza- 5 tion, or association, a substantial activity of which is 6 to foster national or international professional sports 7 competitions (including by managing league business 8 affairs, officiating or providing referees, coordinating 9 schedules, managing sponsorships or broadcast sales, 10 operating loan programs for competition facilities, or 11 overseeing player conduct).’’. 12 (b) EFFECTIVE DATE.—The amendment made by 13 this section shall apply to taxable years beginning after 14 the date of enactment of this Act. 15 Æ VerDate Sep 11 2014 06:46 Jul 06, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H3908.IH H3908 pbinns on DSKJLVW7X2PROD with $$_JOB