Baton Rouge, Louisiana, August 18, 2025
News Summary
The Louisiana Legislature is considering several proposals aimed at providing tax breaks for college athletes, including exemptions on state income taxes for NIL deals. Proposed House Bill 639 seeks to increase the tax on sports gambling to raise funds for NCAA Division I programs. Critics are concerned about the potential impact on state services while supporters argue it enhances Louisiana’s competitive edge. Additional bills propose varying levels of tax exemptions for NIL income, reflecting a growing emphasis on athlete compensation amid a changing national landscape.
BATON ROUGE, Louisiana — The Louisiana Legislature is currently deliberating on a series of legislative proposals aimed at providing tax breaks and creating new funding sources for college athletes amidst concerns over the impact on state services. Proposed measures include exemptions from state income taxes on name, image, and likeness (NIL) deals, as well as new funding mechanisms for NCAA Division I athletics programs, including major schools like Louisiana State University (LSU).
House Bill 639, introduced by Representative Neil Riser, seeks to raise the tax rate on sports gambling from 15% to 32.5%. The revenue generated from this increased tax is intended to tackle social issues associated with gambling and also designate 25% of the funds to support student-athletes in NCAA Division I schools in Louisiana, which encompasses UL Lafayette, UL Monroe, Louisiana Tech, and LSU. This shift could potentially boost annual sports gambling revenue for the state from an estimated $54 million to around $116 million, channeling approximately $30 million towards college athletics.
The current allocation of sports gambling tax revenue is primarily focused on essential services, with 25% directed towards early childhood education, 10% to local governments, and portions also designated for gambling addiction programs. Critics have raised concerns that diverting these funds to athletics could detract from crucial state services, arguing that it runs counter to the Republican party’s free-market principles.
In addition to House Bill 639, two other measures, House Bill 166 and House Bill 168, have been proposed to exempt college athletes from state income tax on NIL compensation. House Bill 166 calls for a complete exemption of all NIL income from state taxes, while House Bill 168 proposes a cap of $12,500 on taxable NIL income. The goal of these tax exemptions is to enhance Louisiana’s competitive edge over states that do not impose a state income tax.
As college athletics in Louisiana thrived during the 2021-22 academic year, LSU’s athletic programs generated around $500 million for the state economy. However, there is concern about equity as graduate assistants will still be taxed on their income, raising questions about the fairness of the new tax structures. Furthermore, House Bill 168 includes a proposed tax deduction for businesses entering into NIL agreements with athletes.
Other ongoing legislative initiatives include a resolution led by Rep. Rashid Young advocating for a task force focused on NIL transparency issues, and Senate Bill 200, which seeks to limit financial assistance for international athletes at Louisiana colleges to a maximum of 25%. Additionally, House Concurrent Resolution 13 aims to reschedule LSU’s home games to later in the day to mitigate heat-related concerns.
In a related move, Louisiana Governor Jeff Landry has signed an executive order that protects colleges from penalties when facilitating athlete compensation under NIL arrangements. This executive order restricts the use of state funds for athlete compensation but remains effective until federal NIL legislation is enacted or a settlement is reached allowing for such compensation.
The legislative efforts in Louisiana represent a significant push to strengthen support for student-athletes in a national landscape marked by uncertainty surrounding NIL regulations, with stakeholders raising questions about the prioritization of funding, the cultural divide between academic and athletic disciplines, and the potential consequences for essential state services, particularly education.
FAQ
What is the proposed tax break for college athletes in Louisiana?
The Louisiana Legislature is proposing to exempt college athletes from state income taxes on their name, image, and likeness (NIL) deals through two bills: House Bill 166 and House Bill 168, which provide different exemptions for NIL income.
How will the state fund college athletics?
House Bill 639 aims to increase the tax on sports gambling from 15% to 32.5%. The new revenue will support college athletics, potentially generating additional revenue that can be directed towards NCAA Division I programs.
What are some criticisms of the new legislation?
Critics argue that the proposals contradict free-market principles, may exacerbate cultural divides between academics and athletics, and could divert essential funds away from priority state services such as early childhood education.
Key Features of the Legislative Proposals
| Proposal | Details |
|---|---|
| House Bill 639 | Increases sports gambling tax to 32.5% and allocates 25% to college athletics. |
| House Bill 166 | Full exemption of NIL compensation from state income tax. |
| House Bill 168 | Exempts the first $12,500 of NIL income from state taxes. |
| Senate Bill 200 | Limits financial assistance to international athletes. |
| Governor’s Executive Order | Protects colleges from penalties for facilitating NIL compensation. |
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- LA Illuminator: Louisiana Governor Signs Order to Allow Schools to Pay College Athletes
- KPLC: Louisiana Legislators Consider College Athletics Subsidies
- New Orleans City Business: Louisiana NIL Order College Athlete Compensation
- The Advertiser: LSU Baseball at Baton Rouge Regional NCAA Tournament
- Rhode Island Athletics: Baseball Looks to Extend Season at Baton Rouge Regional
- Wikipedia: College Athletics in the United States
- Encyclopedia Britannica: College Sport
- Google Search: College Athletes NIL Regulations
- Google Scholar: College Athletes Compensation
- Google News: College Athletics Legislation Louisiana
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