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TAX INFORM

What the new bill means for sports
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1 THE PLAN hits college boosters by eliminating deductions for donations made to university athletic departments for the purpose of securing the right to purchase tickets. Under the IRS's current treatment, 80% of such donations are eligible to be deducted as a charitable donation—no longer.

2 THE BILL stands to benefit pro athletes since the top marginal tax rate (over $500,000 for singles, $600,000 for couples, i.e. many athletes) ticks down from 39.6% to 37.0%. But because the plan caps deductions for state and local taxes, high earners in high-tax states (California, New York, New Jersey) may not come out ahead.

3 WHAT'S MOST noteworthy, though, is what the final bill ultimately excluded. The first version called for an end to tax-free stadium-construction bonds, an exemption that fueled public financing for projects (left) that primarily benefited billionaire team owners. But that matter is not addressed in the final bill.