Alabama lawmakers introduce bill that would exempt NIL money from tax

By Chris Marler

Alabama lawmakers are exploring legislation that would create a competitive advantage for potential recruits and college athletes who sign with in-state schools. Alabama would become the latest state in the footprint of the SEC to pass a bill exempting NIL earnings from state taxes. 

Georgia was recently in the news for doing something similar, which would eliminate state taxes for NIL earnings. Alabama’s state income tax rate ranges from 2% to 5%. However, states like Florida, Tennessee, and Texas all have no state income tax. 

The bill would put schools in the state of Alabama, and Georgia, on an even playing field with those schools in the aforementioned states without state income tax. The legislation was introduced early Tuesday afternoon from state representative Joe Lovvorn.