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House File 2125 - IntroducedA Bill ForAn Act 1relating to college athletics by requiring a name,
2image, and likeness financial literacy course for college
3athletes, exempting certain net income received by college
4athletes from the individual income tax, and allowing for
5deductions from individual and corporate income taxes for
6contributions made to college athletic collectives, and
7including retroactive applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2NET INCOME TAX EXEMPTION AND DEDUCTION — cOLLEGE ATHLETICS
3 Section 1. Section 422.7, Code 2024, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 44. a. As used in this subsection:
6(1) “Collective” means a for-profit or nonprofit entity that
7pools money to provide benefits to student athletes including
8facilitating opportunities to build and enhance the personal
9brand of student athletes enrolled in the school.
10(2) “Nonprofit” means exempt from federal income taxation
11pursuant to section 501(c)(3).
12(3) “Participates” includes a student athlete who elects
13not to compete for a year against other competitive teams, or
14who is injured but remains on the competitive intercollegiate
15athletic program.
16(4) “School” means a community college as defined in section
17260C.2, an accredited private institution as defined in section
18256.183, or an institution of higher education under the
19control of the state board of regents.
20(5) “Student athlete” means a student enrolled at a
21school and who participates in an organized competitive
22intercollegiate athletic program at the school.
23b. Subtract, to the extent included, net income received by
24a student athlete from a collective.
25c. Subtract the amount of contributions, not to exceed
26twenty thousand dollars, made to a nonprofit collective during
27the tax year for the purpose of providing benefits to student
28athletes.
29 Sec. 2. Section 422.35, Code 2024, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 14. a. Subtract the amount of
32contributions, not to exceed forty thousand dollars, made to a
33collective during the tax year for the purpose of providing a
34benefit to a student athlete.
35b. For purposes of this subsection:
-1- 1(1) “Collective” means a nonprofit entity that pools money
2to provide benefits to student athletes including facilitating
3opportunities to build and enhance the personal brand of
4student athletes enrolled in the school.
5(2) “Nonprofit” means exempt from federal income taxation
6pursuant to section 501(c)(3).
7(3) “Participates” includes a student athlete who elects
8not to compete for a year against other competitive teams, or
9who is injured but remains on the competitive intercollegiate
10athletic program.
11(4) “School” means a community college as defined in section
12260C.2, an accredited private institution as defined in section
13256.183, or an institution of higher education under control
14of the state board of regents.
15(5) “Student” means a student enrolled at a school who
16participates in an organized competitive intercollegiate
17athletic program at the school.
18 Sec. 3. RETROACTIVE APPLICABILITY. This division of this
19Act applies retroactively to January 1, 2024, for tax years
20beginning on or after that date.
21DIVISION II
22FINANCIAL LITERACY COURSE
23 Sec. 4. Section 256.183, subsection 1, unnumbered paragraph
241, Code 2024, is amended to read as follows:
25“Accredited private institution” means an institution of
26higher learning located in Iowa which is operated privately
27and not controlled or administered by any state agency or
28any subdivision of the state and which meets the criteria in
29paragraphs “a” and “b” and all of the criteria in paragraphs “d”
30through “i” “j”, except that institutions defined in paragraph
31“c” of this subsection are exempt from the requirements of
32paragraphs “a” and “b”:
33 Sec. 5. Section 256.183, subsection 1, Code 2024, is amended
34by adding the following new paragraph:
35 NEW PARAGRAPH. j. Adopts a policy requiring student
-2-1athletes as defined in section 422.7, subsection 44, to enroll
2and complete a name, image, and likeness financial literacy
3course in the first and fifth semesters of enrollment.
4 Sec. 6. Section 260C.14, Code 2024, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 25. Establish a policy requiring student
7athletes as defined in section 422.7, subsection 44, to enroll
8and complete a name, image, and likeness financial literacy
9course in the first and fourth semesters of enrollment.
10 Sec. 7. Section 262.9, Code 2024, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 39. Direct the institutions of higher
13education under its control to adopt a policy requiring student
14athletes as defined in section 422.7, subsection 44, to enroll
15and complete a name, image, and likeness financial literacy
16course in the first and fifth semesters of enrollment.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill relates to college athletics by requiring a
21financial literacy course for college athletes, exempting
22certain net income received by a college athlete from the
23individual income tax, and allowing for deductions from
24individual and corporate income taxes for contributions to a
25collective.
26DIVISION I — NET INCOME TAX EXEMPTION AND DEDUCTION —
27COLLEGE ATHLETICS. The bill exempts from the individual income
28tax net income received by a student athlete from a collective.
29The bill allows a deduction from the individual income tax
30the amount of a contribution, not to exceed $20,000, made to
31a nonprofit collective during the tax year for the purpose of
32providing a benefit to a student athlete. The bill allows a
33similar deduction from the corporate income tax not to exceed
34$40,000.
35The bill defines “collective” to mean a for-profit or
-3-1nonprofit entity that pools money to provide benefits to
2student athletes including facilitating opportunities to build
3and enhance the personal brand of the student athlete enrolled
4in the school.
5The bill defines “school” to mean a community college,
6an accredited private institution as defined in Code section
7256.183, or an institution of higher education under the
8control of the state board of regents.
9The bill defines “student athlete” to mean a student
10enrolled at a school who participates in an organized
11competitive intercollegiate athletic program at the school.
12The bill also defines “participates” to include a student who
13elects not to compete for a year against other competitive
14teams, or who is injured but remains on the competitive
15intercollegiate athletic program.
16The division applies retroactively to tax years beginning on
17or after January 1, 2024.
18DIVISION II — NAME, IMAGE, AND LIKENESS FINANCIAL LITERACY
19COURSE — COLLEGE ATHLETE. The bill requires a student as
20defined in the bill to enroll and complete two name, image,
21and likeness financial literacy courses during the enrollment
22period at a community college, accredited private institution,
23or institution of higher education under the control of the
24state board of regents.
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2image, and likeness financial literacy course for college
3athletes, exempting certain net income received by college
4athletes from the individual income tax, and allowing for
5deductions from individual and corporate income taxes for
6contributions made to college athletic collectives, and
7including retroactive applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2NET INCOME TAX EXEMPTION AND DEDUCTION — cOLLEGE ATHLETICS
3 Section 1. Section 422.7, Code 2024, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 44. a. As used in this subsection:
6(1) “Collective” means a for-profit or nonprofit entity that
7pools money to provide benefits to student athletes including
8facilitating opportunities to build and enhance the personal
9brand of student athletes enrolled in the school.
10(2) “Nonprofit” means exempt from federal income taxation
11pursuant to section 501(c)(3).
12(3) “Participates” includes a student athlete who elects
13not to compete for a year against other competitive teams, or
14who is injured but remains on the competitive intercollegiate
15athletic program.
16(4) “School” means a community college as defined in section
17260C.2, an accredited private institution as defined in section
18256.183, or an institution of higher education under the
19control of the state board of regents.
20(5) “Student athlete” means a student enrolled at a
21school and who participates in an organized competitive
22intercollegiate athletic program at the school.
23b. Subtract, to the extent included, net income received by
24a student athlete from a collective.
25c. Subtract the amount of contributions, not to exceed
26twenty thousand dollars, made to a nonprofit collective during
27the tax year for the purpose of providing benefits to student
28athletes.
29 Sec. 2. Section 422.35, Code 2024, is amended by adding the
30following new subsection:
31 NEW SUBSECTION. 14. a. Subtract the amount of
32contributions, not to exceed forty thousand dollars, made to a
33collective during the tax year for the purpose of providing a
34benefit to a student athlete.
35b. For purposes of this subsection:
-1- 1(1) “Collective” means a nonprofit entity that pools money
2to provide benefits to student athletes including facilitating
3opportunities to build and enhance the personal brand of
4student athletes enrolled in the school.
5(2) “Nonprofit” means exempt from federal income taxation
6pursuant to section 501(c)(3).
7(3) “Participates” includes a student athlete who elects
8not to compete for a year against other competitive teams, or
9who is injured but remains on the competitive intercollegiate
10athletic program.
11(4) “School” means a community college as defined in section
12260C.2, an accredited private institution as defined in section
13256.183, or an institution of higher education under control
14of the state board of regents.
15(5) “Student” means a student enrolled at a school who
16participates in an organized competitive intercollegiate
17athletic program at the school.
18 Sec. 3. RETROACTIVE APPLICABILITY. This division of this
19Act applies retroactively to January 1, 2024, for tax years
20beginning on or after that date.
21DIVISION II
22FINANCIAL LITERACY COURSE
23 Sec. 4. Section 256.183, subsection 1, unnumbered paragraph
241, Code 2024, is amended to read as follows:
25“Accredited private institution” means an institution of
26higher learning located in Iowa which is operated privately
27and not controlled or administered by any state agency or
28any subdivision of the state and which meets the criteria in
29paragraphs “a” and “b” and all of the criteria in paragraphs “d”
30through “i” “j”, except that institutions defined in paragraph
31“c” of this subsection are exempt from the requirements of
32paragraphs “a” and “b”:
33 Sec. 5. Section 256.183, subsection 1, Code 2024, is amended
34by adding the following new paragraph:
35 NEW PARAGRAPH. j. Adopts a policy requiring student
-2-1athletes as defined in section 422.7, subsection 44, to enroll
2and complete a name, image, and likeness financial literacy
3course in the first and fifth semesters of enrollment.
4 Sec. 6. Section 260C.14, Code 2024, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 25. Establish a policy requiring student
7athletes as defined in section 422.7, subsection 44, to enroll
8and complete a name, image, and likeness financial literacy
9course in the first and fourth semesters of enrollment.
10 Sec. 7. Section 262.9, Code 2024, is amended by adding the
11following new subsection:
12 NEW SUBSECTION. 39. Direct the institutions of higher
13education under its control to adopt a policy requiring student
14athletes as defined in section 422.7, subsection 44, to enroll
15and complete a name, image, and likeness financial literacy
16course in the first and fifth semesters of enrollment.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill relates to college athletics by requiring a
21financial literacy course for college athletes, exempting
22certain net income received by a college athlete from the
23individual income tax, and allowing for deductions from
24individual and corporate income taxes for contributions to a
25collective.
26DIVISION I — NET INCOME TAX EXEMPTION AND DEDUCTION —
27COLLEGE ATHLETICS. The bill exempts from the individual income
28tax net income received by a student athlete from a collective.
29The bill allows a deduction from the individual income tax
30the amount of a contribution, not to exceed $20,000, made to
31a nonprofit collective during the tax year for the purpose of
32providing a benefit to a student athlete. The bill allows a
33similar deduction from the corporate income tax not to exceed
34$40,000.
35The bill defines “collective” to mean a for-profit or
-3-1nonprofit entity that pools money to provide benefits to
2student athletes including facilitating opportunities to build
3and enhance the personal brand of the student athlete enrolled
4in the school.
5The bill defines “school” to mean a community college,
6an accredited private institution as defined in Code section
7256.183, or an institution of higher education under the
8control of the state board of regents.
9The bill defines “student athlete” to mean a student
10enrolled at a school who participates in an organized
11competitive intercollegiate athletic program at the school.
12The bill also defines “participates” to include a student who
13elects not to compete for a year against other competitive
14teams, or who is injured but remains on the competitive
15intercollegiate athletic program.
16The division applies retroactively to tax years beginning on
17or after January 1, 2024.
18DIVISION II — NAME, IMAGE, AND LIKENESS FINANCIAL LITERACY
19COURSE — COLLEGE ATHLETE. The bill requires a student as
20defined in the bill to enroll and complete two name, image,
21and likeness financial literacy courses during the enrollment
22period at a community college, accredited private institution,
23or institution of higher education under the control of the
24state board of regents.
-4-jm/jh