NASCAR depreciation schedule acceleration provokes controversy
October 28, 2011
Critics of House Bill 3087 - which was refiled this month by Florida Republican Congressman Vern Buchanan - claim the accelerated depreciation
would undercut Internal Revenue Service regulations, the Palm Beach Post reports.
The aim of the bill is to take provisions contained in the Internal Revenue Code of 1986 and make the depreciation classification of "motorsports entertainment complexes" permanent. Specifically, it would allow the extension of the seven-year straight line cost recovery period for such complexes, letting them write off costs over a shorter depreciation schedule
. The estimated cost of the legislation to taxpayers in 2011 is $40 million.
Independent watchdog Taxpayers for Common Sense notes, "the IRS questions whether the increasingly popular tracks really belong in the same tax category as amusement parks. These owners have also gotten plenty of other tax breaks over the years from states and localities eager to get speedways," as quoted by Right Wing News.
Without the tax break, complex owners would have to write off costs over a 39-year period for nonresidential property and a 15-year period for improvements.