SB 71: 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 that college athletes earn from deals allowing companies or others to use their name, image, or likeness (often called NIL deals) counts as taxable income just 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 bill amends Chapter 7 of Title 48, the state's income tax law, so that NIL compensation received by a student athlete at a Georgia postsecondary school under O.C.G.A. § 20-3-681 would not count as taxable net income for state purposes, as long as it is included in the athlete's federal adjusted gross income and is not already exempt under some other law. The change would apply to tax years beginning 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 compensation.
• Limits the exemption to NIL payments received under O.C.G.A. § 20-3-681, the existing state law governing college athlete NIL deals.
• Requires the income to already be counted in the athlete's federal adjusted gross income for the exemption to apply.
• Excludes income that is already exempt from Georgia tax under some other law, to avoid double exemptions.
• Sets the exemption to apply starting with tax years beginning on or after January 1, 2025.

College athletes at Georgia postsecondary institutions who earn money from name, image, or likeness deals, and by extension the colleges and universities where they play. The Georgia Department of Revenue would also be affected, since it administers the state income tax exemption.

If enacted, student athletes earning NIL money in Georgia would keep more of that income because it would no longer be taxed at the state level, potentially making Georgia schools more financially attractive to recruits compared to other states without such an exemption.

• Section 1 adds paragraph (11.3) to subsection (a) of O.C.G.A. § 48-7-27, excluding NIL compensation received under O.C.G.A. § 20-3-681 from taxable net income.
• The exemption only applies to income already included in the athlete's federal adjusted gross income and not otherwise exempt under another law.
• Section 2 makes the change apply to taxable years beginning on or after January 1, 2025.
• Section 3 repeals any conflicting laws, a standard clause with no specific substantive effect beyond this bill's changes.

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)

• college athletes
• name image and likeness
• income taxes
• state tax exemptions
• higher education