Bill Summary
The "No Tax Subsidies for Stadiums Act of 2025" is legislation aimed at amending the Internal Revenue Code to prohibit the classification of bonds used to finance professional stadiums as tax-exempt. The bill specifically adds a provision that defines "professional stadium bonds" and clarifies that any bonds issued for the purpose of financing or refinancing capital expenditures for facilities used for professional sports events are not eligible for tax-exempt status. This change is intended to eliminate tax subsidies that benefit professional sports teams and their stadiums. The new rules will apply to bonds issued after the enactment of the legislation.
Possible Impacts
The "No Tax Subsidies for Stadiums Act of 2025" could affect people in various ways. Here are three examples:
1. **Increased Costs for Stadium Financing**: Without tax-exempt status for bonds used to finance professional stadiums, local governments and stadium developers may face higher borrowing costs. This could lead to increased costs for construction and maintenance of stadiums, which may be passed on to consumers through higher ticket prices, concessions, and parking fees.
2. **Impact on Local Economic Development**: Communities that rely on professional sports teams for economic activity might experience a slowdown in development if stadium projects become less financially viable. This could affect job creation in the area, as fewer construction jobs and service jobs related to the stadium may be available, impacting local employment rates and economic growth.
3. **Changes in Public Funding Priorities**: The elimination of tax-exempt financing for professional stadiums may lead local governments to reconsider their funding priorities. Without the ability to subsidize such projects through tax-exempt bonds, funds may be redirected to other public services, such as education, healthcare, or infrastructure, potentially benefiting a wider segment of the community but at the expense of sports-related investments.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1192 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1192
To amend the Internal Revenue Code of 1986 to ensure that bonds used to
finance professional stadiums are not treated as tax-exempt bonds.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 27, 2025
Mr. Lankford (for himself and Mr. Booker) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to ensure that bonds used to
finance professional stadiums are not treated as tax-exempt bonds.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``No Tax Subsidies for Stadiums Act of
2025''.
SEC. 2. NO TAX-EXEMPT BONDS FOR PROFESSIONAL STADIUMS.
(a) In General.--Section 103(b) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraph:
``(4) Professional stadium bond.--Any professional stadium
bond.''.
(b) Professional Stadium Bond Defined.--Section 103(c) of such Code
is amended by adding at the end the following new paragraph:
``(3) Professional stadium bond.--The term `professional
stadium bond' means any bond issued as part of an issue any
proceeds of which are used to finance or refinance capital
expenditures allocable to a facility (or appurtenant real
property) which, during at least 5 days during any calendar
year, is used as a stadium or arena for professional sports
exhibitions, games, or training.''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
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