Young, Warner Introduce Legislation to Support Local Speedways

WASHINGTON – Ahead of the Indianapolis 500, U.S. Senators Todd Young (R-Ind.) and Mark R. Warner (D-Va.) today introduced the Motorsports Fairness and Permanency Act, legislation that would make permanent a tax classification on depreciating assets for motorsports entertainment facilities. The legislation would allow venues to more effectively plan improvements and make safety updates, bringing additional jobs and positive economic impacts to surrounding communities.

“Motorsports are engrained in Indiana’s history and culture and play a major role in our state’s economy,” said Senator Young. “This bill will make a simple fix to our tax code to give speedways the ability to make needed improvements, invest in safety, and enhance the spectator experience. I’m proud to support this bill on behalf of the Hoosier motorsports industry and race fans across Indiana.”

“The Motorsports Fairness and Permanency Act is a simple fix to our tax code that will offer speedways the freedom to make long-term investments and upgrades to their facilities,” said Senator Warner. “I’m proud to introduce legislation that will improve driver safety, enhance fan experience, and support jobs in our racing communities.”

Since 2004, Congress has enacted temporary extensions to allow investments inside a motorsports entertainment complex to qualify for a seven-year recovery period for tax purposes. This accelerated depreciation provision was most recently extended in 2020 and is set to expire at the end of 2025. The current uncertainty over whether the provision will be renewed has hindered the ability of track owners to make informed, long-term investment decisions for facility improvements in the future. Should the provision expire, roughly one third of all motorsports assets would be reclassified under the 39-year depreciation period and two-thirds would fall under the 15-year period, putting racetracks at a serious disadvantage when compared to other sports and entertainment facilities. The Motorsports Fairness and Permanency Act would make the seven-year depreciation schedule permanent for all eligible assets.

“Motorsports is a big economic engine in Indiana and the many racing facilities around the Hoosier state create and support thousands of jobs and millions of dollars of investment each year. The Indianapolis Motor Speedway is proud to be the world’s largest sporting venue with nearly 235,000 permanent seats around our 2.5 mile, 114 year old facility. Investing in our infrastructure and our customer experience is a constant emphasis and this legislation is beneficial to our planning and execution of projects and upgrades that our fans expect when the visit the Racing Capital of the World,” said Doug Boles, President, Indianapolis Motor Speedway and IndyCar. 

“The Motorsports Fairness and Permanency Act impacts everyone at all levels of Indiana motorsports. And it treats everyone fairly. Regardless of the size of the racetrack, or the type of racing that fans enjoy there,  we all need certainty to continue investing in improvements that help drive the local economy and improve the sport. Thanks to Senators Young and Warner for their leadership on this important Act,” said Reece O’Connor, President, Kokomo Speedway.

The Motorsports Fairness and Permanency Act is also supported by the Automobile Competition Committee for the United States (ACCUS), the umbrella organization of auto racing sanctioning bodies in the United States, as well as the Specialty Equipment Market Association (SEMA) and Performance Racing Industry (PRI).  

Young and Warner previously introduced the Motorsports Fairness and Permanency Act in 2023. 

Full legislative text is available here.