Bill Text: IA HF2125 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to college athletics by requiring a name, image, and likeness financial literacy course for college athletes, exempting certain net income received by college athletes from the individual income tax, and allowing for deductions from individual and corporate income taxes for contributions made to college athletic collectives, and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2024-02-01 - Subcommittee Meeting: 02/01/2024 12:00PM RM 304 (Cancelled). [HF2125 Detail]
Download: Iowa-2023-HF2125-Introduced.html
House
File
2125
-
Introduced
HOUSE
FILE
2125
BY
RINKER
and
NORDMAN
A
BILL
FOR
An
Act
relating
to
college
athletics
by
requiring
a
name,
1
image,
and
likeness
financial
literacy
course
for
college
2
athletes,
exempting
certain
net
income
received
by
college
3
athletes
from
the
individual
income
tax,
and
allowing
for
4
deductions
from
individual
and
corporate
income
taxes
for
5
contributions
made
to
college
athletic
collectives,
and
6
including
retroactive
applicability
provisions.
7
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
8
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2125
DIVISION
I
1
NET
INCOME
TAX
EXEMPTION
AND
DEDUCTION
——
COLLEGE
ATHLETICS
2
Section
1.
Section
422.7,
Code
2024,
is
amended
by
adding
3
the
following
new
subsection:
4
NEW
SUBSECTION
.
44.
a.
As
used
in
this
subsection:
5
(1)
“Collective”
means
a
for-profit
or
nonprofit
entity
that
6
pools
money
to
provide
benefits
to
student
athletes
including
7
facilitating
opportunities
to
build
and
enhance
the
personal
8
brand
of
student
athletes
enrolled
in
the
school.
9
(2)
“Nonprofit”
means
exempt
from
federal
income
taxation
10
pursuant
to
section
501(c)(3).
11
(3)
“Participates”
includes
a
student
athlete
who
elects
12
not
to
compete
for
a
year
against
other
competitive
teams,
or
13
who
is
injured
but
remains
on
the
competitive
intercollegiate
14
athletic
program.
15
(4)
“School”
means
a
community
college
as
defined
in
section
16
260C.2,
an
accredited
private
institution
as
defined
in
section
17
256.183,
or
an
institution
of
higher
education
under
the
18
control
of
the
state
board
of
regents.
19
(5)
“Student
athlete”
means
a
student
enrolled
at
a
20
school
and
who
participates
in
an
organized
competitive
21
intercollegiate
athletic
program
at
the
school.
22
b.
Subtract,
to
the
extent
included,
net
income
received
by
23
a
student
athlete
from
a
collective.
24
c.
Subtract
the
amount
of
contributions,
not
to
exceed
25
twenty
thousand
dollars,
made
to
a
nonprofit
collective
during
26
the
tax
year
for
the
purpose
of
providing
benefits
to
student
27
athletes.
28
Sec.
2.
Section
422.35,
Code
2024,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
14.
a.
Subtract
the
amount
of
31
contributions,
not
to
exceed
forty
thousand
dollars,
made
to
a
32
collective
during
the
tax
year
for
the
purpose
of
providing
a
33
benefit
to
a
student
athlete.
34
b.
For
purposes
of
this
subsection:
35
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(1)
“Collective”
means
a
nonprofit
entity
that
pools
money
1
to
provide
benefits
to
student
athletes
including
facilitating
2
opportunities
to
build
and
enhance
the
personal
brand
of
3
student
athletes
enrolled
in
the
school.
4
(2)
“Nonprofit”
means
exempt
from
federal
income
taxation
5
pursuant
to
section
501(c)(3).
6
(3)
“Participates”
includes
a
student
athlete
who
elects
7
not
to
compete
for
a
year
against
other
competitive
teams,
or
8
who
is
injured
but
remains
on
the
competitive
intercollegiate
9
athletic
program.
10
(4)
“School”
means
a
community
college
as
defined
in
section
11
260C.2,
an
accredited
private
institution
as
defined
in
section
12
256.183,
or
an
institution
of
higher
education
under
control
13
of
the
state
board
of
regents.
14
(5)
“Student”
means
a
student
enrolled
at
a
school
who
15
participates
in
an
organized
competitive
intercollegiate
16
athletic
program
at
the
school.
17
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
division
of
this
18
Act
applies
retroactively
to
January
1,
2024,
for
tax
years
19
beginning
on
or
after
that
date.
20
DIVISION
II
21
FINANCIAL
LITERACY
COURSE
22
Sec.
4.
Section
256.183,
subsection
1,
unnumbered
paragraph
23
1,
Code
2024,
is
amended
to
read
as
follows:
24
“Accredited
private
institution”
means
an
institution
of
25
higher
learning
located
in
Iowa
which
is
operated
privately
26
and
not
controlled
or
administered
by
any
state
agency
or
27
any
subdivision
of
the
state
and
which
meets
the
criteria
in
28
paragraphs
“a”
and
“b”
and
all
of
the
criteria
in
paragraphs
“d”
29
through
“i”
“j”
,
except
that
institutions
defined
in
paragraph
30
“c”
of
this
subsection
are
exempt
from
the
requirements
of
31
paragraphs
“a”
and
“b”
:
32
Sec.
5.
Section
256.183,
subsection
1,
Code
2024,
is
amended
33
by
adding
the
following
new
paragraph:
34
NEW
PARAGRAPH
.
j.
Adopts
a
policy
requiring
student
35
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athletes
as
defined
in
section
422.7,
subsection
44,
to
enroll
1
and
complete
a
name,
image,
and
likeness
financial
literacy
2
course
in
the
first
and
fifth
semesters
of
enrollment.
3
Sec.
6.
Section
260C.14,
Code
2024,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
25.
Establish
a
policy
requiring
student
6
athletes
as
defined
in
section
422.7,
subsection
44,
to
enroll
7
and
complete
a
name,
image,
and
likeness
financial
literacy
8
course
in
the
first
and
fourth
semesters
of
enrollment.
9
Sec.
7.
Section
262.9,
Code
2024,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
39.
Direct
the
institutions
of
higher
12
education
under
its
control
to
adopt
a
policy
requiring
student
13
athletes
as
defined
in
section
422.7,
subsection
44,
to
enroll
14
and
complete
a
name,
image,
and
likeness
financial
literacy
15
course
in
the
first
and
fifth
semesters
of
enrollment.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
college
athletics
by
requiring
a
20
financial
literacy
course
for
college
athletes,
exempting
21
certain
net
income
received
by
a
college
athlete
from
the
22
individual
income
tax,
and
allowing
for
deductions
from
23
individual
and
corporate
income
taxes
for
contributions
to
a
24
collective.
25
DIVISION
I
——
NET
INCOME
TAX
EXEMPTION
AND
DEDUCTION
——
26
COLLEGE
ATHLETICS.
The
bill
exempts
from
the
individual
income
27
tax
net
income
received
by
a
student
athlete
from
a
collective.
28
The
bill
allows
a
deduction
from
the
individual
income
tax
29
the
amount
of
a
contribution,
not
to
exceed
$20,000,
made
to
30
a
nonprofit
collective
during
the
tax
year
for
the
purpose
of
31
providing
a
benefit
to
a
student
athlete.
The
bill
allows
a
32
similar
deduction
from
the
corporate
income
tax
not
to
exceed
33
$40,000.
34
The
bill
defines
“collective”
to
mean
a
for-profit
or
35
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nonprofit
entity
that
pools
money
to
provide
benefits
to
1
student
athletes
including
facilitating
opportunities
to
build
2
and
enhance
the
personal
brand
of
the
student
athlete
enrolled
3
in
the
school.
4
The
bill
defines
“school”
to
mean
a
community
college,
5
an
accredited
private
institution
as
defined
in
Code
section
6
256.183,
or
an
institution
of
higher
education
under
the
7
control
of
the
state
board
of
regents.
8
The
bill
defines
“student
athlete”
to
mean
a
student
9
enrolled
at
a
school
who
participates
in
an
organized
10
competitive
intercollegiate
athletic
program
at
the
school.
11
The
bill
also
defines
“participates”
to
include
a
student
who
12
elects
not
to
compete
for
a
year
against
other
competitive
13
teams,
or
who
is
injured
but
remains
on
the
competitive
14
intercollegiate
athletic
program.
15
The
division
applies
retroactively
to
tax
years
beginning
on
16
or
after
January
1,
2024.
17
DIVISION
II
——
NAME,
IMAGE,
AND
LIKENESS
FINANCIAL
LITERACY
18
COURSE
——
COLLEGE
ATHLETE.
The
bill
requires
a
student
as
19
defined
in
the
bill
to
enroll
and
complete
two
name,
image,
20
and
likeness
financial
literacy
courses
during
the
enrollment
21
period
at
a
community
college,
accredited
private
institution,
22
or
institution
of
higher
education
under
the
control
of
the
23
state
board
of
regents.
24
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