Motorsports Tax Break Made Permanent: Race Tracks Get Accelerated 7-Year Write-Off on Buildings

The aptly named Motorsports Fairness and Permanency Act of 2025 is short, sweet, and laser-focused on one thing: making a specific tax break for race tracks permanent. Specifically, it removes the expiration date on the accelerated depreciation schedule for motorsports entertainment complexes. This means owners of these facilities can continue to write off the cost of their buildings over seven years, rather than the much longer standard period for commercial real estate.

The Fast Lane on Tax Deductions

Think of depreciation as the government’s way of acknowledging that buildings and equipment wear out over time. Normally, if you build a commercial property—say, an office building or a shopping mall—you have to deduct that cost over 39 years. That’s a long time to wait for a tax break. However, Congress previously created a special, faster 7-year schedule for motorsports complexes. This bill simply makes that 7-year write-off rule permanent (SEC. 2), providing long-term certainty for the industry.

For the owners and investors behind these complexes—the folks building and running the tracks—this is a big win. It means they get to claim huge deductions much earlier, significantly lowering their taxable income in the short term. This makes capital investment in new or upgraded race facilities much more attractive because the tax benefits kick in right away. If you’re a developer looking to build a new speedway, this permanent rule makes your financial projections much more stable.

Who Pays the Tab?

While this is great news for the motorsports sector, it’s worth asking what it means for everyone else. When a specific industry gets a permanent, accelerated deduction like this, it reduces the amount of tax revenue flowing into the U.S. Treasury. This isn’t a small thing; it's a permanent reduction in the tax base for that sector. Essentially, the rest of the taxpaying public—including you, me, and every other business without this specialized write-off—ends up footing a slightly larger share of the overall tax burden, or contributing to a larger deficit.

For the average person, this bill won't change your daily commute or your paycheck. But it’s a classic example of how tax policy often favors specific, capital-intensive industries. It ensures that the motorsports entertainment complex sector enjoys a significant, ongoing financial advantage that encourages investment in their sector, keeping the lights on and the engines running at the track, but at a cost borne by the collective tax base.