Nascar Race for the Chase

Tax Breaks for Tracks

Today marks the end of the season for the NASCAR Sprint Cup Chase. For those of you who are not race fans, today is akin to the Super Bowl or the World Series of racing. Today’s race – the Ford EcoBoost 400 – is truly an event to experience; and for race fans, today’s experience at the Homestead-Miami Speedway will be much like those of children at an amusement park. 

The beginning of the 2013 race season was February 16th at the Daytona International Speedway, where little over a month earlier the Daytona Beach-based NASCAR celebrated a victory for the racing community as a whole. In 2004, Congress codified a decades-old allowance for motorsports facilities’ election to accelerate depreciation for track construction and improvements. But much like many of the “Bush-era tax cuts,” it was too set to expire. As part of the January fiscal cliff bill, Congress voted to extend the “NASCAR loop hole.”

The tax incentive – which directly benefits track owners – “allows us to compete with football, baseball and basketball, whose facilities are often financed with state and local tax money,” said Daniel Houser of the International Speedway Corporation of Daytona Beach, Florida. Although indirectly, the incentive benefits NASCAR as well as the sport of racing as a whole. NASCAR’s Marcus Jadotte told the New York Times that NASCAR supports “the efforts of Congress to preserve the same tax treatment that motorsports facilities have been operating under for decades.”  

Tracks Added to the 2014 Circuit

The Utica-Rome Speedway in Vernon, New York, will rejoin the NASCAR Wheelen All-American Series next year, along with the Airborne Park Speedway in Plattsburgh, New York.

Although there are no new tracks slated to break ground in the states, the $400 million Canadian Motor Speedway broke ground earlier this year and is expected to be completed to host its first race by 2016. The track, located in Fort Erie, Ontario, is a three-quarter-mile track similar to the NASCAR-sanctioned track in Richmond, Virginia. 

By Misty Priest

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Posted in: Federal Tax Law


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