To amend the Internal Revenue Code of 1986 to remove the income limitation on the exclusion from gross income of any medal or prize money won in competition in the Olympic Games or Paralympic Games.
- Bill Number
- H.R. 7731
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-02-26: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-03-24T01:37:59Z
AI-Generated Summary
Purpose
This bill aims to exempt all Olympic and Paralympic medals and prize money from federal income taxes by removing any income-based restrictions on this exclusion, ensuring that such awards are fully tax-free regardless of the recipient's earnings.
Key Provisions
- Amendment to Tax Code: Updates Section 74(d) of the Internal Revenue Code (IRC) of 1986 to state that gross income (the total income subject to tax before deductions) does not include the value of any medal awarded or prize money received from the United States Olympic Committee for competitions in the Olympic or Paralympic Games.
- Effective Date: The change applies to prizes and awards received after December 31, 2025.
Significant Changes to Existing Law
- Under current law, Olympic and Paralympic medals and prize money are excluded from gross income only if the recipient meets certain income limitations (typically for lower-income individuals).
- This bill eliminates those income thresholds entirely, broadening the tax exemption to all qualifying athletes without restrictions based on their overall earnings.
Potential Impacts
- On Citizens: Primarily benefits U.S. athletes by allowing them to keep the full value of their medals and prize money without owing federal income taxes, which could encourage participation in these games and provide financial relief, especially for professional or higher-earning competitors.
- On Government Agencies: The Internal Revenue Service (IRS) will see a minor reduction in taxable income from these awards, potentially leading to slightly lower tax revenue; however, the overall fiscal impact is expected to be small given the limited number of recipients.
- On International Relations: No direct effects, though it may indirectly support U.S. athletes' competitiveness in international events like the Olympics.
Main Stakeholders Affected
- Olympic and Paralympic Athletes: Direct beneficiaries, gaining tax savings on awards.
- United States Olympic Committee: Involved in distributing prizes, with simplified tax reporting for recipients.
- Taxpayers and IRS: Indirectly affected through reduced government revenue and administrative changes in tax processing.
Notable Legal, Constitutional, or Political Implications
- Legal: Streamlines the IRC by removing a conditional exemption, reducing complexity in tax filings for athletes; no challenges to enforceability anticipated.
- Constitutional: Aligns with Congress's authority to regulate taxation under Article I, Section 8 of the U.S. Constitution, with no apparent free speech, due process, or equal protection issues.
- Political: Supports U.S. sports initiatives, potentially appealing to bipartisan interests in promoting national athletic achievements; introduced by a group of representatives from both parties, indicating low controversy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Fischbach, Michelle [R-MN-7]
Cosponsors (5)
Rep. Stauber, Pete [R-MN-8], Rep. Tenney, Claudia [R-NY-24], Rep. Wied, Tony [R-WI-8], Rep. Kelly, Mike [R-PA-16], Rep. Hurd, Jeff [R-CO-3]
Recent Actions
- 2026-02-26: Referred to the House Committee on Ways and Means.
- 2026-02-26: Introduced in House
- 2026-02-26: Introduced in House
Bill Versions
- To amend the Internal Revenue Code of 1986 to remove the income limitation on the exclusion from gross income of any medal or prize money won in competition in the Olympic Games or Paralympic Games. — issued 2026-02-26 — PDF (2 pages)