Establishing parity in taxation of professional sports franchises

(a) In general Section 162(m)(3)(C) of the Internal Revenue Code of 1986 is amended to read as follows: (C) such employee is among the 5 highest compensated employees for the taxable year other than— (i) any individual described in subparagraph (A) or (B), or (ii) any individual who performs services in the field of athletics (within the meaning of section 1.199A–5(b)(2)(viii) of title 26, Code of Federal Regulations (as in effect on the date of the enactment of this subparagraph)) for the taxpayer, or. (b) Technical amendment Section 162(m)(3)(D) of such Code is amended by inserting such employee before was a covered employee. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.