9:15-9:45am
1208 Longworth HOB

10:00am
2349 Rayburn HOB

10:45am
2112 Rayburn HOB

12:00-12:15pm
1632 Longworth HOB

1:50pm
344 Cannon HOB

3:00pm
1305 Longworth HOB

3:30pm
2239 Rayburn HOB

In 2004, Congress clarified the Tax Code to include Motorsports complexes in the 1986 Tax Reform making “Motorsports entertainment complexes” eligible for the 7-year depreciation that was commonly used for “Theme and Amusement Parks”, which includes “assets used in the provision of rides, attractions, and amusements in activities defined as theme and amusement parks . . . [which are] combinations of amusements, rides, and attractions which are permanently situated on park land and open to the public for the price of admission”

The inclusion of Motorsports Venues to depreciate assets for 7 years is expiring at the end of 2025.

Motorsports, like other businesses, need to plan and grow in a healthy and stable environment. To do so, we need to know what the rules of our future expansion are sooner rather than later.

Motorsports positively impact the community and economy by creating jobs and increasing tourism while providing a family-friendly environment for entertainment and community.

With more than 1200 motorsports venues across the country, this is a regional issue with a national impact.

If not passed:

• 1/3 of motorsports venues will be required to depreciate over 39 years. 
• 2/3 of motorsports venues will be required to depreciate over 15 years.

These changes will inhibit track owners from reinvesting in the facilities which will affect safety and experience unless they raise ticket prices.

Raising ticket prices will have a direct impact on attendance and all the benefits that motorsports venues provide to their areas.

The effects could be disastrous for surrounding communities. Track events generate a significant amount of revenue for local track markets that the communities rely on, and the relationships between motorsports complexes, vendors, and neighboring establishments are a central aspect of the entertainment businesses. The lack of a 7-year depreciation could result in a reinvestment loss, threaten community relationships, and affect the jobs and economic impact that these entertainment complexes provide.

The Tax Cuts and Jobs Act enabled the depreciation of some assets that were placed in service between September 28, 2017, and December 31, 2022, with some limitations and some additional benefits for various asset classes.

As a simple rule, this allowed for assets to be depreciated for 5 years, significantly increasing the buying power of the dollar for improvements and capital equipment.

Because the Tax Cuts and Jobs Act has not been renewed and is not permanent, roughly 1/3 of the motorsports venue assets will fall under the 39-year depreciation lifespan.