118 HR 6774 IH: To amend the Internal Revenue Code of 1986 to establish special rules relating to which professional sports leagues qualify to be exempt from taxation. U.S. House of Representatives 2023-12-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS1st SessionH. R. 6774IN THE HOUSE OF REPRESENTATIVESDecember 13, 2023Mr. Thompson of California (for himself and Mr. Buchanan) introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to establish special rules relating to which professional sports leagues qualify to be exempt from taxation.

1.

Special rules relating to professional sports leagues

(a)

In general

Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:(s)

Special rules relating to professional sports leagues

No organization shall be treated as described in subsection (c)(6) for any taxable year if such organization or entity—(1)is a professional sports league, organization, or association, a substantial activity of which is to foster national or international professional sports competitions (including by managing league business affairs, officiating or providing referees, coordinating schedules, managing sponsorships or broadcast sales, operating loan programs for competition facilities, or overseeing player conduct), and(2)has annual gross receipts in excess of $1,000,000,000 during any of the 5 preceding taxable years..(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2022.