The Motorsports Fairness and Permanency Act (MFPA) is a bipartisan bill introduced in both the House and Senate (S. 1763/H.R. 2231) that would make permanent the 7-year cost recovery period for investments in motorsports entertainment complexes. This policy has been utilized by racetracks and motorsports facilities for over 40 years and has been repeatedly extended by Congress with broad bipartisan support. However, the current definition in tax code expired on December 31, 2025, which means racetracks must now depreciate their costs over a period of 19 to 39 years instead of 7 years.

SEMA and PRI support the MFPA and are calling on Congress to pass this critical tax policy to provide tax certainty to motorsports facilities. Click here to send a letter to your members of Congress asking for their support for the bill.

Background

Our nation’s 1,500+ local racetracks provide live, family-friendly entertainment and foster a strong sense of community. Track operators are constantly innovating and finding ways to put on high-quality motorsports and community events.

While racing is an exciting, action-packed sport, owning and operating a racetrack is often a labor of love. Most tracks are family-owned businesses that operate on narrow margins, requiring owners to carefully invest in facility upgrades such as grandstands, viewing structures, and even parking lots.

Beginning in the 1980s, Congress identified a policy fix for America’s racetracks as well as amusement and theme parks, where each business could accelerate its depreciation instead of waiting for the full amount dictated by the IRS. Refined in 2002, racetracks could implement a 7-year recovery window to incentivize investment in a low-margin industry.

However, the accelerated depreciation schedule for motorsports facilities expired at the end of 2025. Without this vital economic tool, racetracks are subject to outdated IRS guidelines on how to invest in their business.

The Motorsports Fairness and Permanency Act

The bipartisan “Motorsports Fairness and Permanency Act” (S. 1763/H.R. 2231) would amend the Federal Tax Code to make permanent the seven-year recovery period for investments in motorsports entertainment complexes.

  • S. 1763 is sponsored by U.S. Senators Todd Young (R-IN) and Mark Warner (D-VA)
    • Click here to see if your U.S. Senators are cosponsors of the bill.
  • H.R. 2231 is sponsored by U.S. Representatives Claudia Tenney (R-NY) and Mike Thompson (D-CA).
    • Click here to see if your U.S. Representative is a cosponsor of the bill.

The Federal Tax code defines a “motorsports entertainment complex” to mean a racetrack facility that “(i) is permanently situated on land, and (ii) during the 36-month period following the asset being placed in service, hosts 1 or more racing events for automobiles (of any type), trucks, or motorcycles which are open to the public for the price of admission.” 

Accelerated depreciation of investments in a motorsports entertainment complex applies to capital expenditures in a facility’s ticket booths, race track surfaces, suites and hospitality facilities, grandstands and viewing structures, props, walls, facilities that support the delivery of entertainment services, other special-purpose structures, facades, shop interiors, and buildings in addition to support facilities (including food and beverage retailing, souvenir vending, and other non-lodging accommodations), parking lots, sidewalks, bridges, fences, and landscaping. The tax incentive does not, however, apply to transportation equipment, administrative services, assets, warehouses, administrative buildings, hotels, or motels. 

Key Points

  • With the motorsports tax provision expiring on December 31, 2025, , racetracks must now depreciate their costs over a period of 19 to 39 years instead of 7 years.
  • There are over 1,500 racetracks across the U.S., which provide affordable, family-friendly entertainment.
  • Racetracks play an important role in providing jobs and a sense of community in towns throughout the U.S.
  • The majority of motorsports facilities are small businesses that employ many hard-working Americans and provide positive economic benefits to the surrounding communities they serve.
  • Congress should make this provision permanent so all owners can make necessary investments in their tracks and property to ensure that racing continues to be available to enthusiasts nationwide.