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An Alabama state representative is pushing an NIL bill that would help “level the playing field” for its college sports programs. Joe Lovvorn of Auburn is looking to provide a “competitive advantage” for NCAA athletes in the Yellowhammer State.
That would involve making NIL earnings exempt from Alabama individual income tax. The bill, if passed, would theoretically benefit Kalen DeBoer and Hugh Freeze on the recruiting trail.
House Bill 240, otherwise known as the Competitive Edge NIL Tax Cut Act, was introduced on Tuesday. If signed into law, it would go into effect on October 1.
247 Sports broke the situation down further this week.
The bills would theoretically level the playing field when it comes to college in states that don’t have individual income tax like Florida and Texas.
Alabama’s individual income tax is 2% on the first $500 of taxable income, 4% on the next $2,500… and 5% on all taxable income over $3,000.
Both Alabama and Auburn directly compete against programs in the states of Texas and Florida, where individual income tax is non-existent. NIL has played a large role in the successes of those SEC rivals.
Lovvorn noted the impact the bill could have on college sports. “One common thread shared among Alabamians is their love for collegiate athletics,” he said. “The state must foster an environment that helps our schools land top recruits.”
“Exempting NIL earnings from the state income tax gives Alabama a competitive edge, leading to more students receiving a quality education here and more championships coming home to Alabama.”
-Joe Lovvorn
Looking at the 2025 college football recruiting rankings, Texas leads the way. Georgia, which plays in a state that introduced a similar bill earlier this month, ranks second.
Both Alabama (No. 3) and Auburn (No. 9) are ranked among the nation’s Top 10 recruiters in the current cycle. They could become even more successful in the future should the bill pass.
The Crimson Tide and Tigers each fell below expectation in the 2024 season, with Alabama missing the College Football Playoff and Auburn missing out on a bowl game. They watched from home as others competed for a national title.
Feeling as though they’re at a recruiting disadvantage in comparison to conference foes, lawmakers are doing what they can to close the gap. It will be interesting to see what happens with the bill, and how that outcome affects success.