S. 5661

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 renumeration, and for other purposes.

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II

119th CONGRESS

2d Session

S. 5661

IN THE SENATE OF THE UNITED STATES

September 30, 2026

Mr. Warnock (for himself and Mrs. Britt) introduced the following bill; which was read twice and referred to the Committee on Finance

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.