This legislative proposal aims to amend the Internal Revenue Code of 1986 by requiring income tax withholding at the source for Name, Image, and Likeness (NIL) payments made to student athletes who are independent contractors. The bill mandates a 30 percent withholding rate on these payments, whether in cash or non-cash remuneration, treating them as if they were wages solely for the purpose of tax withholding. A key provision allows student athletes to elect to opt out of this mandatory withholding. Additionally, it includes a one-time waiver for underpayment penalties for new student athletes in their first year subject to these rules, helping to prevent unexpected tax liabilities, while explicitly stating this withholding does not alter their independent contractor classification. The legislation defines a "student athlete" as a full-time student making satisfactory academic progress and participating in intercollegiate athletics. The Secretary of the Treasury is also directed to submit a report to Congress by December 31, 2029, evaluating the effects of this withholding, including its costs, benefits, the accuracy of the 30 percent rate, and payor compliance. These provisions are set to apply to payments made in taxable years beginning after December 31, 2027.