[Congressional Record Volume 151, Number 18 (Thursday, February 17, 2005)]
[Senate]
[Page S1656]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM (for himself, Mr. Nelson of Florida, Mr. Kyl, Mr. 
        Allen, Mr. Bunning, Mrs. Dole, and Mr. Chambliss):
  S. 441. A bill to amend the Internal Revenue Code of 1986 to make 
permanent the classification of a motorsports entertainment complex; to 
the Committee on Finance.
  Mr. SANTORUM. Mr. President, I rise to introduce, along with Senator 
Nelson of Florida, Senator Kyl of Arizona, Senator Allen of Virginia, 
Senator Bunning of Kentucky, Senator Chambliss of Georgia, and Senator 
Dole of North Carolina, legislation that would permanently extend the 
current treatment of investments made to motorsports entertainment 
complexes, ensuring that this important economic engine for our economy 
continues to roar. The Motorsports Fairness and Permanency Act of 2005 
will help ensure that job-creating investments in motorsports 
facilities continue to be made under the same economic assumptions and 
tax treatment used for the last several decades--decades that have 
witnessed the most explosive growth in motorsports' long history.
  Motorsports is the fastest growing sport in the United States, 
drawing fans to tracks and speedways around the country. In fact, there 
are over 900 motorsports facilities throughout the U.S., with tracks in 
every State. These facilities contribute to the economy by attracting 
motorsports enthusiasts and tourists, hiring permanent and temporary 
employees, and making capital investments. Facilities of every type--
from local tracks that run weekly racing series to ``superspeedways'' 
that host nationally-televised events--must continually upgrade and 
reinvest in order to remain competitive.
  Motorsports play a significant role in the Commonwealth of 
Pennsylvania, where racing is an integral part of Pennsylvania's 
economy with 60 racing facilities in every corner of the State. In 
fact, Pennsylvania is tied with California for the second-most 
motorsports facilities of any State.
  Our facilities and tracks span across the Commonwealth and include 
the nationally known Pocono Raceway in Long Pond, Lake Erie Speedway, 
and Maple Grove Raceway, located just outside of Reading. These and 
other raceways in Pennsylvania hold NASCAR, National Hot Rod 
Association, Import Drag Racing Circuit, and other racing events, 
drawing hundreds of thousands of fans each year contributing vital 
economic support to their local communities.
  It is clear that motorsports racing plays an important role in 
Pennsylvania, just as it does across this country. When making these 
capital investments, owners of motorsports facilities have long relied 
on and in good faith applied a 7-year depreciation life for these 
assets, but a few years ago the IRS began to raise some questions about 
the use of the 7-year classification. Last year, in H.R. 4520, the 
American Jobs Creation Act of 2004, Congress clarified that the 
appropriate depreciation period for motorsports assets was indeed 7 
years. Due to revenue constraints in that particular bill, the 
provision on motorsports asset classification will lapse in 2008, 
meaning that Congress needs to act to permanently extend the provision. 
These capital expenditures, such as major improvements to existing 
tracks or building new tracks, require several years of planning 
followed by construction. Without a permanent provision that provides 
clarity and certainty, significant capital investments in motorsports 
facilities--and the jobs and economic gains those investments bring--
could be negatively impacted.
  I am hopeful that my colleagues in the Senate will join me in support 
of permanently extending the current treatment of investments in 
motorsports entertainment facilities.
                                 ______