Motorsports Fairness and Permanency Act of 2025
The Motorsports Fairness and Permanency Act of 2025 would permanently classify motorsports entertainment complexes (such as racetracks and related facilities) as a seven-year property for depreciation under the Internal Revenue Code. Specifically, the bill amendments would strike subparagraph (D) from Section 168(i)(15), removing a temporary or sunset-type provision and making the seven-year recovery period permanent. In practical terms, owners of motorsports venues would be allowed to depreciate the cost of qualifying property over seven years on an ongoing basis, rather than facing a potential expiration or change to this treatment in the future. The intent is to provide tax certainty for investors and developers in motorsports facilities, encouraging ongoing and future investment in such venues. The change could affect cash flow for owners, influence financing and construction decisions, and potentially spur activity in related trades and services. The bill as introduced does not include detailed transitional rules, so the exact applicability (e.g., placing property in service after enactment) would come from the final text and accompanying committee language.
Key Points
- 1Makes permanent the seven-year depreciation (recovery) period for motorsports entertainment complexes.
- 2Achieves this by striking subparagraph (D) from Section 168(i)(15) of the Internal Revenue Code.
- 3Provides tax certainty for investors, developers, and operators of motorsports venues, potentially encouraging new construction and upgrades.
- 4Could accelerate tax deductions in early years of property ownership, affecting after-tax cash flow and financing considerations.
- 5The introduced text does not include transitional or effective-date rules; those details would appear in the final version or accompanying committee language.