Sponsor
Claudia Tenney
Representative · R-NY
Representative · R-NY
The bill reduces tax preferences for certain franchise transactions and forces Treasury to issue verification rules to enforce franchise sex-designation policies, but does so at the cost of excluding transgender athletes from protections and imposing higher tax and administrative burdens on owners and government.
U.S. taxpayers could pay less indirect subsidy because franchises that open female-designated teams to males would no longer qualify to amortize franchise acquisition costs, reducing tax preferences for those transactions.
The Treasury is required to issue verification rules that clarify how franchise designations and participant sex policies are identified, giving clearer guidance to tax administrators and affected entities on compliance.
Transgender individuals (and some women) could be excluded from participating in female-designated teams and lose protections under policies that define sex by biology at birth, raising civil‑rights and discrimination concerns.
Franchise owners and small businesses acquiring affected teams would lose the ability to amortize acquisition costs, increasing their taxable income and tax liabilities for purchases after enactment.
The Treasury will face added verification and enforcement responsibilities, creating new administrative and compliance costs and potential enforcement challenges for the agency and related financial actors.
Based on analysis of 2 sections of legislative text.
Disallows amortization tax treatment for female-designated professional sports franchises that permit participation by individuals whose sex is male and requires Treasury verification rules.
Official title: To amend the Internal Revenue Code of 1986 to prohibit amortization of any professional women's sports franchise which allows biological males to participate, and for other purposes.
Introduced June 25, 2026 by Claudia Tenney · Last progress June 25, 2026
Prohibits federal tax amortization treatment for certain professional sports franchises that are designated for females but allow individuals whose sex is male to participate. It directs the Treasury to issue rules to verify which franchises are female-designated and whether they permit participation by individuals whose sex is male, and applies to property acquired after enactment. The change modifies the Internal Revenue Code's amortization rules by adding a targeted disallowance for specified sports franchises and related property, and tasks the Secretary of the Treasury with creating verification and policy guidance for administering the rule.