SB71: SB71 Income Taxes; taxable net income compensation of athletes for the use of the athlete's name, image, or likeness; exempt

Under current Georgia law, income college athletes earn from deals involving their name, image, or likeness (often called NIL deals) counts as taxable income like any other earnings. This bill would change that by adding a new exemption to Georgia's income tax code (O.C.G.A. § 48-7-27). The exemption applies specifically to NIL income that student athletes receive under O.C.G.A. § 20-3-681, a separate Georgia law governing college athlete compensation, but only to the extent that income is already included in the athlete's federal adjusted gross income and is not already exempt under some other law. If passed, the change would apply to taxable years starting on or after January 1, 2025.

• Adds a new exemption to Georgia's income tax law (O.C.G.A. § 48-7-27) for student athletes' name, image, and likeness (NIL) compensation.
• Limits the exemption to NIL income received under O.C.G.A. § 20-3-681, the state law that governs college athlete compensation deals.
• Requires the income to already be counted in the athlete's federal adjusted gross income and not already exempt under another law for the exemption to apply.
• Sets the exemption to apply to taxable years beginning on or after January 1, 2025.
• Repeals any existing Georgia laws that conflict with this change.

College athletes in Georgia who earn money from name, image, and likeness deals, along with the postsecondary institutions they attend, are directly affected. The change also touches the Georgia Department of Revenue, which administers state income tax collection.

If enacted, student athletes earning NIL income in Georgia would keep more of that money because it would no longer be subject to state income tax, potentially making Georgia a more attractive place for athletes to play college sports compared to states without such an exemption.

• Section 1 amends Code Section 48-7-27 by adding paragraph (11.3), exempting NIL compensation received under Code Section 20-3-681 from state taxable net income.
• The exemption only applies to income already included in federal adjusted gross income and not already exempt under another provision of Georgia tax law.
• Section 2 makes the Act applicable to taxable years beginning on or after January 1, 2025.
• Section 3 repeals all laws and parts of laws in conflict with the Act.

1. 2025-02-04Senate Read and Referred (Senate)
2. 2025-02-03Senate Hopper (Senate)

• Brandon Beach (R, SD-021)Primary sponsor
• Greg Dolezal (R, SD-027)
• Ben Watson (R, SD-001)
• Carden Summers (R, SD-013)
• Frank Ginn (R, SD-047)

• name image and likeness
• college athletes
• income taxes
• Georgia tax exemptions
• student athlete compensation