Bill > A08709

This bill introduces a new personal income tax exemption for professional athletes residing in New York state, called the Professional Athletes' Local Monetary Tax Relief and Exemption (PALM TREE) Act. The legislation allows qualifying professional athletes to subtract up to $250,000 of their income from federal adjusted gross income, provided they meet specific criteria. To be eligible, an athlete must be domiciled in New York, have a valid player contract with a qualified sports franchise based in the state, and maintain their primary residence in New York for at least 183 days per year. Qualified sports franchises include professional teams in MLB, NFL, NBA, NHL, MLS, NWSL, WNBA, and PWHL that are based in New York and play home games within the state. The tax exemption applies only to income directly related to the athlete's professional duties, such as salaries, bonuses, performance incentives, and signing bonuses. The tax commissioner is authorized to create rules for implementing the exemption, which will take effect for taxable years beginning on or after January 1, 2026. The bill aims to provide financial relief and potentially attract or retain professional athletes in New York state.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A8709