Louisiana lawmaker Dixon McMakin proposes bill that would make NIL deals tax free for college athletes

By JOE GALLINARO, LouisianaRadioNetwork.com

Louisiana lawmaker Dixon McMakin proposes bill that would make NIL deals tax free for college athletes

A Baton Rouge lawmaker is preparing to file a bill for the upcoming regular session that would make NIL deals tax free for college athletes, meaning they will not have to pay state income taxes on them. State Representative Dixon McMakin says the proposal would help Louisiana schools attract and retain top talent.

“So, what we’re trying to do with this bill is to make sure that Louisiana is always competing for the very best, brightest when it comes to everything we do,” McMakin explained.

Other states, including Illinois, Alabama, and Georgia, are pursuing similar legislation. Critics argue that such policies create tax code disparities and could burden other taxpayers. McMakin says it’s ultimately about helping Louisiana colleges stay competitive.

“Whatever your view on it is, at this current moment, it’s the state we’re playing in. And if we’re going to play, we’re going to be competitive, and we want to maintain our championship excellence at all of our universities. This bill is not just for one university. It’s for the entire State of Louisiana to be competitive,” McMakin said.

NIL deals have become essential for recruitment, alongside a pending settlement that will allow universities to directly compensate players as early as next athletic season. McMakin says tax-free NIL compensation can help convince some of the best high school recruits or transfer portal prospects to play collegiately in Louisiana. “Their endowments are increasing. Their enrollments are increasing. We need to do anything and everything we can in our power, here in Louisiana, to make sure we stay competitive,” McMakin said.