Section 1 Short title
This Act may be cited as the “No Corporate Tax Exemption for Professional Sports Act”.
No Corporate Tax Exemption for Professional Sports Act
A BILL
To amend the Internal Revenue Code of 1986 to prohibit tax-exempt status for professional sports leagues.
Sec. 2 Special rules relating to professional sports leagues
In general— Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(s) Special rules relating to professional sports leagues—No organization or entity shall be treated as described in subsection (c)(6) if such organization or entity—
“(1) is a professional sports league, organization, or association, a substantial activity of which is to foster national or international professional sports competitions (including by managing league business affairs, officiating or providing referees, coordinating schedules, managing sponsorships or broadcast sales, operating loan programs for competition facilities, or overseeing player conduct).”
Effective date— The amendment made by this section shall apply to taxable years beginning after the date of enactment of this Act.