Louisiana Athletes Could Soon Get Tax Break on NIL Money

Sports are a big deal in Louisiana. Whether you hit a high school football field on a Friday night or attend a D3 basketball game at one of our local colleges, fans go nuts cheering on their teams. And, the expect success.

However in the world of college sports the landscape has changed due to NIL. Louisiana athletes that would typically stay home are going to out-of-state colleges to seek fortune and fame.

Well, that's not sitting right with some lawmakers who want the best talent to come to Louisiana - not Georgia or Michigan or other out-of-state programs.

The Louisiana Legislature Could Change College Sports

Louisiana is set to be the next major state to propose a law to make it easier to get college athletes. Rep. Dixon McMakin of Baton Rouge is proposing a bill that would make NIL money state-tax free for college athletes. Why would he propose such a bill? Well, as he says, "we're not going to let them outcompete us."

According to reports, LSU and other Louisiana colleges contacted Dixon about the proposal.

In short, if this bill passes, it would make the money that Louisiana student-athletes earn from NIL deals exempt from state income tax. States like Illinois & Alabama already have similar bills in place. So, in his mind, this levels the playing field and would allow Louisiana to get & retain talent.

What Impact Would This Bill Have on Louisiana College Sports?

Obviously, it would have a major impact on the state and its college sports programs. LSU, for instance, is already regarded as one of the top colleges in the country for athletes. Baseball, Football, etc., put major stars in the pros every single year. That's a big draw. However, when compared to let's say Alabama who also puts a lot of athletes into the pros, a decision could come down to money. Getting a tax break could make the difference on signing day.

A bill like this would allow LSU to financially compete for top athletes like Paul Skenes from out of state while also helping to retain guys from in-state. The more stars you have, the more successful you are and the more money you could potentially make.

For colleges that aren't as well recognized as LSU, a smaller college like Louisiana Tech just for the sake of argument, they could be able to grab more 3 or 4 star recruits who aren't at LSU levels but could still compete for major programs across the country via financial incentive.

So, this is kind of a big deal for Louisiana sports - if passed.