The World of College Athletics continues to evolve at a rapid rate as schools and States adapt with the changes to the sport. As NIL has become more prevalent and with revenue sharing on the horizon, the changes will only continue to ramp up. One of the latest trends has been in regards to how states are taxing NIL deals.
Georgia, Illinois, and Alabama have all proposed bills to make NIL exempt from State Income Tax. If approved, the schools in said states would gain an advantage on the recruiting trail as a player could earn more per year.
As first reported by Wilson Alexander of The Advocate Baton Rouge, Representative Dixon McMakin plans to propose the bill which would exempt the compensation athletes earn through Name, Image, and Likeness from State Income Tax.
Louisiana will become the latest state to introduce a bill exempting NIL money from state income tax, @theadvocatebr has learned. Its sponsor said “we’re not gonna let them outcompete us." LSU and other schools contacted him about the idea.https://t.co/NWquXAC8MJ
— Wilson Alexander (@whalexander_) February 25, 2025
"Other states — Illinois, Alabama and Georgia — have bills right now to make it where NIL compensation is exempt from state income tax. We will be competing with those other states, and we’re not gonna let them outcompete us"Dixon McMackin
The change would allow LSU to compete with Alabama, Auburn, Georgia, and Illinois on the recruiting trail as LSU would be on the same playing field as the schools it is recruiting against. It's not certain that the bill will be approved as it still needs to be proposed but, it's becoming a trend around the Country.
As of late, LSU has gone all in on the NIL movement and the results in the transfer portal could be an example of what comes from the efforts. Brian Kelly himself donated $1,000,000 to be on the front line of the schools efforts and it resulted in the school raising over $3,000,000 for NIL. As the revenue sharing era nears, LSU will continue to adapt to stay at the forefront of the college athletics world.