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WASHINGTON – The senses. Americans Mark R. Warner (D-VA) and Todd Young (R-IN), today presented the Motorsports Fairness and Permanence Act, bipartisan legislation that would make permanent an asset depreciation tax classification for motorsports entertainment facilities. The legislation would allow sites to more effectively plan improvements and make safety updates, creating additional jobs and positive economic impacts on surrounding communities.
“THE Motorsports Fairness and Permanence Act is a simple solution to our tax code that will give highways the freedom to make long-term investments and upgrade their facilities,” said Senator Warner. “I’m proud to introduce legislation that will improve driver safety, enhance the fan experience and support jobs in our racing communities.”
“Motorsports are steeped in Indiana’s history and culture and play a major role in our state’s economy. This bill will provide a simple solution to our tax code to give expressways the ability to make necessary improvements, invest in safety and improve the spectator experience. I am proud to support this bill on behalf of the Hoosier motorsports industry and racing fans across Indiana,” said Senator Young.
Since 2004, Congress has codified the definition of a motor sports entertainment complex into the tax code as a temporary provision, recently extended as part of the 2020 omnibus and set to expire at the end of 2025. This provision allows racetrack complexes to operate under the condition that all assets inside the facility depreciate as one over a seven-year period. However, the current uncertainty over whether the provision will be renewed has hampered the ability of track owners to make informed, long-term investment decisions for facility improvements in the future. If the provision were to expire, approximately one-third of all motorsport assets would be reclassified under the 39-year amortization period and two-thirds would fall under the 15-year period, putting racetracks at a serious disadvantage compared to other sports and entertainment facilities.
Complementary bipartisan legislation was introduced in the House of Representatives in April of this year. THE Motorsports Fairness and Permanence Act is supported by the Automobile Competition Committee for the United States (ACCUS), the umbrella organization of motor racing sanctioning bodies in the United States.
“As future investments in capital projects are considered here at Martinsville Speedway, this important legislation provides much-needed certainty not only for our facility, but also for motorsport facilities across the country,” said Clay Campbell, president of Martinsville Speedway.
“The Motorsports Fairness and Continuity Act will help protect jobs and investments in the motorsports industry. We appreciate the leadership of Senator Warner and Senator Young on this important issue,” said Lori Waran, president of Richmond Raceway.
“Motorsports entertainment complexes are using the seven-year period granted by the Motorsports Fairness and Permanency Act to reinvest in their facilities and organizations to create jobs, improve safety and enrich surrounding economies, most of which are in rural areas like VIRginia International Raceway (VIR) east to Halifax and Pittsylvania counties” said Connie Nyholm, owner and CEO, Virginia International Raceway. “Thanks to our year-round investment and operations, VIR has already attracted eighteen companies to its campus and more than 600,000 visitors a year through its doors.”
“Motorsport is a big economic driver in Indiana and the many racing facilities around Hoosier State create and support thousands of jobs and millions of dollars in investment every year. Indianapolis Motor Speedway is proud to be the largest sports venue in the world with nearly 235,000 permanent seats around our 2.5-mile, 114-year-old facility. Investing in our infrastructure and customer experience is an ongoing priority and this legislation is beneficial. for our planning and execution of projects and upgrades that our fans expect when they visit the racing capital of the world,” said Doug Boles, president, Indianapolis Motor Speedway.
“The Motorsport Fairness and Permanence Act impacts everyone at every level of Indiana motorsport. And he treats everyone fairly. Regardless of the size of the racetrack or the type of racing fans enjoy, we all need certainty to continue investing in improvements that help boost the local economy and improve the sport. Thank you to Senators Young and Warner for their leadership on this important legislation,” said Reece O’Connor, president of Kokomo Speedway.
A copy of the text of the bill is available here.
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