H.R.2231 - Motorsports Fairness and Permanency Act of 2025 (119th Congress)
Summary
H.R.2231, the Motorsports Fairness and Permanency Act of 2025, seeks to amend the Internal Revenue Code of 1986 to make permanent the 7-year recovery period for motorsports entertainment complexes. This bill was introduced in the House of Representatives on March 18, 2025, and referred to the Committee on Ways and Means. The bill aims to provide long-term tax certainty for investments in motorsports entertainment facilities.
Expected Effects
The primary effect of this bill would be to provide permanent tax relief to motorsports entertainment complexes by allowing them to depreciate their assets over a 7-year period. This could incentivize further investment in these facilities. It could also lead to increased economic activity in the areas where these complexes are located.
Potential Benefits
- Increased Investment: Permanent tax benefits could encourage more investment in motorsports entertainment complexes.
- Job Creation: Construction and operation of these facilities could lead to new job opportunities.
- Economic Growth: Increased tourism and spending in local economies could result.
- Tax Certainty: Businesses will have a predictable tax environment for long-term planning.
- Competitiveness: US motorsports facilities may become more competitive globally.
Most Benefited Areas:
Potential Disadvantages
- Revenue Loss: The federal government could experience a slight decrease in tax revenue.
- Industry Specific: The tax break is specific to one industry, which may be seen as unfair by others.
- Potential for Abuse: There is a potential for misclassification of assets to take advantage of the tax break.
- Limited Impact: The overall economic impact may be relatively small.
- Opportunity Cost: The forgone tax revenue could be used for other public services.
Constitutional Alignment
This bill falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the US Constitution. The bill does not appear to infringe on any specific constitutional rights or limitations. The decision to provide tax benefits to a specific industry is a policy choice within the powers granted to Congress.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).