118 HR 3908 IH: No Corporate Tax Exemption for Professional Sports Act U.S. House of Representatives 2023-06-07 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. 3908IN THE HOUSE OF REPRESENTATIVESJune 7, 2023Mr. Garamendi (for himself, Ms. Tlaib, and Ms. Brownley) introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to prohibit tax-exempt status for professional sports leagues.

1.

Short title

This Act may be cited as the No Corporate Tax Exemption for Professional Sports Act.

2.

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 or entity shall be treated as described in subsection (c)(6) 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)..(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after the date of enactment of this Act.