I 118th CONGRESS 1st Session H. R. 3908 IN THE HOUSE OF REPRESENTATIVES June 7, 2023 Mr. Garamendi (for himself, Ms. Tlaib , and Ms. Brownley ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to prohibit tax-exempt status for professional sports leagues.

1. Short title This Act may be cited as the No Corporate Tax Exemption for Professional Sports Act . 2. Special rules relating to professional sports leagues (a) In general Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (s) Special rules relating to professional sports leagues No organization or entity shall be treated as described in subsection (c)(6) if such organization or entity— (1) is a professional sports league, organization, or association, a substantial activity of which is to foster national or international professional sports competitions (including by managing league business affairs, officiating or providing referees, coordinating schedules, managing sponsorships or broadcast sales, operating loan programs for competition facilities, or overseeing player conduct). . (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of enactment of this Act.