Provides a personal income tax exemption for certain professional athletes residing in New York state of up to two hundred fifty thousand dollars of income.
STATE OF NEW YORK
________________________________________________________________________
8709
2025-2026 Regular Sessions
IN ASSEMBLY
June 2, 2025
___________
Introduced by M. of A. JENSEN -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to providing a personal income
tax exemption for certain professional athletes residing in New York
state
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as "The Profes-
2 sional Athletes' Local Monetary Tax Relief and Exemption Enactment (PALM
3 TREE) Act".
4 § 2. Section 612 of the tax law is amended by adding a new subsection
5 (z) to read as follows:
6 (z) Income exemption for certain professional athletes. 1. For
7 purposes of this subsection:
8 (i) "Qualifying professional athlete" shall mean an individual who:
9 (A) is a natural person domiciled in the state of New York.
10 (B) has a current, valid, and enforceable written player contract with
11 a qualified sports franchise.
12 (C) maintains their primary place of residence in the state of New
13 York for at least one hundred eighty-three days during the taxable year.
14 (ii) "Qualified sports franchise" shall mean a professional sports
15 team or franchise:
16 (A) based in the state of New York.
17 (B) plays its home games at a facility located within the state of New
18 York.
19 (C) which competes in:
20 (1) Major League Baseball (MLB).
21 (2) National Football League (NFL).
22 (3) National Basketball Association (NBA).
23 (4) National Hockey League (NHL).
24 (5) Major League Soccer (MLS).
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13197-01-5
A. 8709 2
1 (6) National Women's Soccer League (NWSL).
2 (7) Women's National Basketball Association (WNBA).
3 (8) Professional Women's Hockey League (PWHL).
4 2. Notwithstanding any other provision of this section, there may be
5 subtracted from federal adjusted gross income the first two hundred
6 fifty thousand dollars of compensation received by a qualifying profes-
7 sional athlete from a qualified sports franchise.
8 3. The exemption under this subsection shall apply only to income
9 derived from services performed directly in connection with the qualify-
10 ing athlete's duties as a professional athlete, including but not limit-
11 ed to salaries, bonuses, performance incentives, and signing bonuses
12 received under the qualifying contract.
13 4. The commissioner shall promulgate such rules and regulations as may
14 be necessary to implement the provisions of this subsection.
15 § 3. This act shall take effect immediately and shall apply to taxable
16 years beginning on or after January 1, 2026.
