Bill > HB3871

This bill creates a new income tax deduction for student-athletes in Illinois specifically related to compensation earned from their name, image, and likeness (NIL). Starting in tax years beginning on or after January 1, 2027, student-athletes will be able to deduct the total amount of NIL compensation that is included in their federal adjusted gross income. This means that if a student-athlete earns money through endorsements, sponsorships, or other NIL-related activities, they can reduce their Illinois state taxable income by that same amount. The deduction is designed to help student-athletes keep more of the money they earn through their personal brand and athletic talents, providing a financial benefit that aligns with recent changes in collegiate athletics that allow athletes to profit from their name, image, and likeness. The bill specifically references the Student-Athlete Endorsement Rights Act, indicating a broader context of legal protections for student-athletes' earning potential.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3871&GAID=18&DocTypeID=HB&SessionID=114&GA=104