2. Sec. 317. Seven-year cost recovery period for motorsports racing track facility. . Track owners want to be able write off the cost of their facilities on their taxes over seven years - a depreciation timetable many of them have used for decades. But the IRS has wanted to stretch it to at least 15 years and has raised questions whether the increasingly popular tracks really belong in the same tax category as amusement parks. Auto track owners are simply trying to get out of paying more taxes - which they'd have to do if they deducted less every year. These owners have gotten plenty of tax breaks over the years from states and localities eager to get speedways. The provision would be extend 2 years till the end of 2009 and would cost 100 million. The provision encompasses all facilities including grandstands, parking lots and concession stands.[Chicago Tribune; Photo Credit: Funnyhub.com]
One of the so-called "sweeteners" added to the financial markets bailout bill that passed the Senate Tuesday night was an obscure provision allowing motorsports race track owners to write off the cost of their facilities over seven years. Apparently the IRS has been trying to extend the track write-off period to 15 years — which means track owners would be able to deduct less every year — but thanks to the Wall Street Bailout, superspeedway owners barely able to scrape by with obscure NASCAR and IndyCar races will finally get the tax breaks they deserve. Cost to taxpayers? $100 million. Provision and analysis courtesy of The Chicago Tribune after the jump.