Sponsors (2)
The bill creates a statutory framework and dedicated accounts to clarify and manage NIL income taxation—benefiting student‑athletes and reducing regulatory uncertainty—at the cost of added compliance for taxpayers and new administrative burdens for government and financial institutions.
Student‑athletes and other taxpayers can open dedicated NIL investment accounts that clarify how name/image/likeness income is treated for tax purposes starting in 2026, enabling clearer tax planning and potentially reducing tax uncertainty or volatility for that income.
The IRS and Treasury receive explicit statutory authority and a statutory framework to administer and regulate NIL-related tax treatment, reducing legal and regulatory uncertainty for tax administrators and financial institutions.
Taxpayers who receive NIL income—especially student‑athletes—will face added compliance complexity and paperwork under the new account rules, increasing time and filing costs.
The IRS, Treasury, and financial institutions must absorb additional administrative burden and conduct new rulemaking and oversight to implement the accounts, raising government and industry implementation costs.
Based on analysis of 2 sections of legislative text.
Adds a new part to the federal tax code creating "NIL investment accounts" and updates Subchapter F table of parts for tax years after 2025.
Official title: To amend the Internal Revenue Code of 1986 to establish name, image, and likeness investment accounts for student-athletes, and for other purposes.
Introduced June 30, 2026 by W. Greg Steube · Last progress June 30, 2026
Creates a new, tax-code backed category called "NIL investment accounts" by adding a new part to Subchapter F of Chapter 1 of the Internal Revenue Code. The change is structural: it inserts rules for these accounts into the tax code and updates the table of parts. The amendments apply to taxable years beginning after December 31, 2025. The text available only establishes the new part and its effective date; it does not include the detailed account rules in the summary provided. Implementation will require IRS rulemaking and guidance to define eligibility, contributions, distributions, and tax treatment for those accounts.