Kutak Rock attorney Matt Boch was featured in Tax Notes in an article by Amy Hodges examining how states are using tax policy to recruit college athletes in the new name, image and likeness (NIL) era.

The article, “Recruiting College Athletes with Tax,” explores state efforts to attract student- athletes through income tax exemptions for NIL earnings. Arkansas became the first state to enact such legislation earlier this year with Act 839, which exempts NIL income from state income tax beginning in 2025.

Matt provided insight into the motivations behind the Arkansas law and its potential impact on competitiveness within the Southeastern Conference. He explained that Arkansas’s NIL legislation was designed to level the playing field with neighboring states that do not impose an income tax and to make the State’s collegiate programs more competitive in recruiting top talent.

Matt said that “sandwiched between Texas and Tennessee, Arkansas is sensitive to the challenges of competing for talent against states without an income tax.” He pointed out that Arkansas and nearly every other SEC state that imposes an income tax “aspires to catch up to Florida, Texas, and Tennessee as no-income-tax states.” Matt added, “The NIL tax exemption was a relatively affordable way to make Arkansas programs more competitive and maybe give us a leg up against some of the other SEC states. It will be interesting to see how the exemption helps with recruiting.”

Read the full article here: “Recruiting College Athletes with Tax” (Subscription may be required)

Matt is a tax, business and regulatory attorney with a particular focus on state and local taxes (SALT) and economic development incentives. Matt advises taxpayers on SALT matters across the country, including state income taxes, sales and use taxes, gross receipts taxes, property taxes, excise taxes, premium taxes and severance taxes. He represents taxpayers in all stages of tax controversies as well as taxpayers seeking voluntary disclosures or guidance requests.  Policy work has been a particular focus for Matt, and he has been associated with several Arkansas tax reforms.