[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2897 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2897
To amend the Internal Revenue Code of 1986 to provide that the
exclusion from gross income for qualified scholarships does not apply
to athletic scholarships if the recipient receives certain income
derived from the recipient's name, image, or likeness.
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IN THE SENATE OF THE UNITED STATES
September 29, 2021
Mr. Burr introduced the following bill; which was read twice and
referred to the Committee on Finance
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A BILL
To amend the Internal Revenue Code of 1986 to provide that the
exclusion from gross income for qualified scholarships does not apply
to athletic scholarships if the recipient receives certain income
derived from the recipient's name, image, or likeness.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``NIL Scholarship Tax Act''.
SEC. 2. TREATMENT OF CERTAIN ATHLETIC SCHOLARSHIPS AS INCOME.
(a) In General.--Section 117(c) of the Internal Revenue Code of
1986 is amended to read as follows:
``(c) Limitations.--
``(1) Teaching services.--
``(A) In general.--Except as provided in
subparagraph (B), subsections (a) and (d) shall not
apply to that portion of any amount received which
represents payment for teaching, research, or other
services by the student required as a condition for
receiving the qualified scholarship or qualified
tuition reduction.
``(B) Exceptions.--Subparagraph (A) shall not apply
to any amount received by an individual under--
``(i) the National Health Service Corps
Scholarship Program under section 338A(g)(1)(A)
of the Public Health Service Act,
``(ii) the Armed Forces Health Professions
Scholarship and Financial Assistance program
under subchapter I of chapter 105 of title 10,
United States Code, or
``(iii) a comprehensive student work-
learning-service program (as defined in section
448(e) of the Higher Education Act of 1965)
operated by a work college (as defined in such
section).
``(2) Certain athletic scholarships.--
``(A) In general.--Subsection (a) shall not apply
to any athletic scholarship if--
``(i) the individual receiving such
athletic scholarship received income in excess
of $20,000 during the taxable year from the
name, image, or likeness of such individual, or
``(ii) this paragraph applied to such
athletic scholarship for any prior taxable
year.
``(B) Athletic scholarship.--For purposes of this
paragraph, the term `athletic scholarship' means any
qualified scholarship the terms of which require the
recipient to participate in a program of
intercollegiate athletics at an institution of higher
education (as defined in section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002)) in order to be
eligible to receive such assistance.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
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