NASCAR Track Owners Secure $70 Million Tax Break in US Fiscal Deal
A provision in the 2013 US fiscal cliff legislation extended tax relief for NASCAR racetrack owners, with an estimated $70 million in benefits for major operators.
NASCAR racetrack owners received an estimated $70 million in tax breaks as part of the fiscal legislation passed by US lawmakers in early January 2013. The provision, included in the wider “fiscal cliff” deal, extended a special depreciation schedule for motorsport facilities, delivering a direct financial benefit to major track operators.
The tax measure allows track owners to depreciate their facilities over seven years rather than the standard 39 years for commercial property. This accelerated cost recovery period was originally introduced in 2004 and has been renewed several times, but was due to expire at the end of 2012. The 2013 fiscal package granted a further one-year extension, with the Joint Committee on Taxation estimating the lost tax revenue at $70 million for the year.
Who benefits from the extension?
International Speedway Corporation (ISC), which is majority-owned by the France family, operates a dozen tracks on the NASCAR Sprint Cup calendar. Speedway Motorsports, another major beneficiary, owns eight tracks used in the series. Together, these two companies control the majority of venues for top-level NASCAR events, and both stand to gain from the continued tax relief.
- International Speedway Corporation: 12 Sprint Cup tracks
- Speedway Motorsports: 8 Sprint Cup tracks
The provision is not exclusive to NASCAR, but its structure and timing have made it particularly valuable to the stock car racing industry. The tax break covers construction, renovation and improvement costs for racing facilities, including grandstands, parking lots and other infrastructure. By accelerating depreciation, track owners can reduce their taxable income and free up capital for further investment.
Political context and other beneficiaries
NASCAR’s links to US politics have drawn attention to the provision. Senior figures in the sport, including CEO Brian France and president Mike Helton, were active supporters of Republican presidential candidate Mitt Romney in the 2012 election. The inclusion of the racetrack tax break in the fiscal cliff deal followed lobbying efforts by motorsport interests, but it was not the only industry to benefit. The same package extended tax incentives for Hollywood film production, Puerto Rican rum producers and algae growers.
Impact on track owners and the wider sport
For ISC and Speedway Motorsports, the extension of accelerated depreciation provides a tangible financial advantage. It reduces their annual tax bills and can support ongoing upgrades to facilities, which may benefit teams, sponsors and fans. The provision does not directly affect NASCAR teams or drivers, but it helps maintain the infrastructure that underpins the sport’s commercial success.
While the measure drew criticism from some quarters as an example of industry-specific tax relief, it passed as part of a much broader package designed to avoid automatic tax increases and spending cuts. The future of the racetrack tax break beyond 2013 remained uncertain at the time, with further extensions subject to Congressional negotiations.
