← Back to Bills
H.R. 10682House119th Congress (2025-2027)In Committee

To amend the Internal Revenue Code of 1986 to provide parity in the taxation of professional sports franchises under the limitation on the deduction for certain employee remuneration, and for other purposes.

Sponsored by Nicole MalliotakisRep. Nicole Malliotakis (R-NY)
Introduced October 1, 2026

AI-Generated Summary

Updated October 6, 2026 at 7:21 AM UTC

This bill changes the tax rules that limit deductions for certain employee pay so that professional sports teams are treated the same as other businesses. It modifies the definition of which high‑paid employees count toward the deduction limit, specifically excluding athletes from that count. The change applies to tax years starting after December 31, 2026 and affects professional sports franchises and the IRS rules they follow.

Key Provisions

  • Amends the rule that limits deductions for compensation of the five highest‑paid employees by adding an exception for individuals who work in athletics, so they are not counted among those five.
  • Adds a minor wording change to a related clause for clarity.
  • Sets the effective date of these changes to tax‑the ​​​​​​  ​  ​  ​  …

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

October 1, 2026

View full timeline
HouseIntro Referral

Introduced in House

October 1, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

October 1, 2026

Bill Text

Latest available legislative text

Reading Mode
Latest
Raw Text PDF XML
Introduced in HouseIssued October 1, 2026

I

119th CONGRESS

2d Session

H. R. 10682

IN THE HOUSE OF REPRESENTATIVES

October 1, 2026

Ms. Malliotakis (for herself, Mr. Suozzi, Mr. Jack, and Mrs. McBath) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide parity in the taxation of professional sports franchises under the limitation on the deduction for certain employee remuneration, and for other purposes.

1.

Establishing parity in taxation of professional sports franchises

(a)

In general

Section 162(m)(3)(C) of the Internal Revenue Code of 1986 is amended to read as follows:

(C)

such employee is among the 5 highest compensated employees for the taxable year other than—

(i)

any individual described in subparagraph (A) or (B), or

(ii)

any individual who performs services in the field of athletics (within the meaning of section 1.199A–5(b)(2)(viii) of title 26, Code of Federal Regulations (as in effect on the date of the enactment of this subparagraph)) for the taxpayer, or

.

(b)

Technical amendment

Section 162(m)(3)(D) of such Code is amended by inserting such employee before was a covered employee.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2026.