[Congressional Record Volume 150, Number 60 (Tuesday, May 4, 2004)]
[Senate]
[Page S4826]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  MOTORSPORTS FACILITIES FAIRNESS ACT

  Mr. GRAHAM of South Carolina. Mr. President, I rise today to urge my 
colleagues to join me in supporting S. 1524, the Motorsports Facilities 
Fairness Act.
  S. 1524 would clarify the tax treatment of motorsports facilities, 
codifying the 7-year depreciation classification that track owners have 
used, in good faith, for many years. This classification went without 
question in numerous audits and reviews until very recently. Now the 
IRS wants to implement a new interpretation of the law that would 
result in a retroactive tax increase for motorsports facility owners.
  This new interpretation would penalize the owners of motorsports 
entertainment facilities who have invested hundreds of millions of 
dollars in these properties in order to meet the demands of sanctioning 
bodies and racing fans. Technological changes and enhanced safety 
requirements can render even recent track repair and reconstruction 
obsolete. Tracks must also compete to host premier racing events, in 
part by drawing as many fans as possible. This is why facilities must 
constantly renovate, rebuild, upgrade and expand.
  Darlington Raceway in South Carolina typifies this reinvestment 
ethic. The track that is ``too touch to tame,'' is undergoing 
substantial upgrades. Earlier this year, Darlington installed ``SAFER'' 
(Steel And Foam Energy Reduction) barriers. The track is currently 
installing lighting for night racing, which will be completed before 
the next running of the NASCAR Southern 500 in November.
  S. 1524 would not only cover large facilities such as Darlington. The 
legislation would also clarify the tax law for hundreds of tracks 
around the country, including approximately 30 other facilities in 
South Carolina alone.
  The government should not punish these track owners for making 
capital investments in their facilities. These investments provide 
substantial economic benefits for the communities where these 
facilities are located.
  Congress should promptly enact S. 1524 to provide certainty and 
clarity to the Tax Code and to encourage motorsports facility owners to 
continue to make economically beneficial investments.

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