H.R. 10682, Professional Sports Tax Carve-out. Quorum's AI analysis reads it as a net cost — and names who bears it.
H.R. 10682 · Net cost
What it does
This bill amends the tax code to exempt professional athletes from the $1 million cap on corporate tax deductions for executive compensation. Currently, companies can only deduct up to $1 million per year in pay for their top five executives; this bill carves out anyone who 'performs services in the field of athletics,' allowing sports franchises to deduct unlimited athlete salaries as a business expense. The change takes effect for tax years after December 31, 2026.
The analysis names professional sports franchises (NFL, NBA, MLB, NHL, MLS teams) — and 2 more groups — among the beneficiaries.
The cost
The exemption applies to 'any individual who performs services in the field of athletics' — potentially broader than just star players; could extend to coaches, trainers, and other sports-industry personnel employed by franchises.
The analysis put a high warning level on this bill. Transparency scores 75%, and the analysis found no provisions unrelated to the bill's subject.
Who is behind it
Filed by Nicole Malliotakis. Cosponsored by Austin Scott, Brian Jack, Clay Fuller and Lucy McBath.
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