Tracking legal, legislative, and regulatory developments impacting the racing and performance industry.

PRI’s Washington, D.C.-based advocacy team works around the clock to protect race tracks and motorsports businesses. We are currently engaged in a number of federal and state initiatives, including a new campaign to raise awareness and pass the RPM Act, along with an update on international tariffs for U.S. businesses and a note about how PRI is supporting race tracks. 

Call Congress, Tell Your Lawmakers To Pass The RPM Act

Support for the bipartisan Recognizing the Protection of Motorsports Act (RPM Act), H.R. 3281 and S. 2736, is more critical in 2022 than ever before. The bipartisan bill, designed to protect Americans’ right to convert street vehicles into dedicated race cars, has garnered healthy backing by lawmakers. As of press time, the RPM Act had 113 members of the House and 22 Senators co-sponsoring the initiative, thanks in large part to the Save Our Race Cars letter-writing campaign, which saw over 1.5 million letters sent to Congress. The industry’s efforts have garnered the attention of lawmakers, but we can’t let up until the bill becomes law. 

PRI thanks the racers, businesses, enthusiasts, and fans that have already sent a letter to elected officials, and we encourage you to follow up by making a quick call to voice support for the bill. Talking points and the phone numbers of your local elected officials can be found at votervoice.net/SEMA/campaigns/88605/respond.

“Lawmakers are more likely to address the issues they hear the most about. If an office hasn’t heard from their constituents in significant numbers over a period of time, they assume the issue isn’t very important or has been addressed. We can’t let them think that the hard work has been completed on the RPM Act,” said Daniel Ingber, PRI’s Vice President of Government and Legal Affairs. “Now is the time to step on the gas and apply pressure. We need our co-sponsors to make passing the RPM Act a top priority, so go online to find out how to call your lawmakers and ask that they save racing from government threat.”

Beyond phone calls, below is a list of actions industry members can take to help to pass the RPM Act:

• For those that have not sent a letter, visit saveourracecars.com. A letter has already been drafted, and it takes less than a minute.

• Sign and send a letter to your lawmakers on company letterhead. Email erics@sema.org for a template and more information.

• Post about the RPM Act on your company’s social media accounts using the toolkit of digital assets found at performanceracing.com/rpm-assets.

• Become a member of PRI and learn more about PRI’s Political Action Committee (PAC). The Performance Racing PAC allows PRI members to support the lawmakers that stand up for racing in Washington. Visit performanceracing.com/membership for more information.

For details about the RPM Act and more information about working with your lawmakers, contact Eric Snyder at erics@sema.org.

New RPM Act Supporters (as of late November 2021) 

U.S. Senators:

• Tammy Baldwin (D-WI)
• Marsha Blackburn (R-TN)
• Deb Fischer (R-NE)
• Mike Braun (R-IN)
• John Kennedy (R-LA)
• John Hoeven (R-ND)
• Bob Casey (D-PA)

U.S. Representatives:

• Clay Higgins (R-LA)
• Gus M. Bilirakis (R-FL)
• David P. Joyce (R-OH)
• Cynthia Axne (D-IA)
• Angie Craig (D-MN)
• Darren Soto (D-FL)
• John R. Carter (R-TX)

PRI Social Media Campaign Brings Awareness To RPM Act

In conjunction with ongoing efforts, PRI’s advocacy team has begun a social media campaign encouraging the racing community to call and write their members of Congress and ask them to support the RPM Act. 

“The men and women who work in the motorsports industry, racers, and their fans are on the front lines in the fight to pass the RPM Act,” said Eric Snyder, PRI’s Director of Congressional Affairs. “We have commenced a social media campaign that is focused on getting everyone who is a part of the racing community to write their members of Congress in support of the bill. For those who have already written their lawmakers and want to do more, this campaign is for you. We’re asking that you take the next step and call your lawmakers and ask them to pass the RPM Act.”

The phone campaign is off to a fast start, with over 500 calls to Congress in just its first few weeks. PRI appreciates the efforts of everyone who has helped so far and is enthusiastic about the campaign’s impact as it continues to evolve. 

U.S., E.U. Agree To End Steel And Aluminum Tariffs, U.S. Now in Talks With Japan

The United States and the European Union have agreed to end a three-year dispute over steel and aluminum tariffs. As a result, effective January 1, 2022, the U.S. will no longer impose 25% tariffs on steel (sheets, bars, tubes, etc.) and 10% on aluminum, and will instead use a quota system. The agreement will also apply to derivative products made in the E.U. and subject to tariffs such as steel bumper stampings (HTSUS 8708.10.30).

“For motorsports manufacturers who have been subject to tariffs—those who import raw steel or aluminum, or certain finished products like steel bumper stampings from the E.U.—it means they are no longer subject to the 25% tariffs on steel or 10% tariffs on aluminum unless the value of the U.S. imports exceeds the E.U.’s allotted quota. This should save these companies money and will take effect this year,” said Stuart Gosswein, PRI’s Senior Director, Federal Government Affairs.

Related, the U.S. and Japan are now pursuing a new commercial and industrial partnership to bolster economic ties, including strengthening supply chains, export controls, and innovations such as digital technologies. As part of the discussions, the two countries have agreed to pursue a quota approach to remove the metal tariffs.

“If the discussions between the U.S. and Japan are successful, it would mean that motorsports manufacturers who import steel or aluminum from Japan would no longer have to pay the 25% and 10% tariffs and instead would be able to take advantage of a quota system for metal imports,” Gosswein said. 

The Trump administration first imposed the metal tariffs in 2018 under Section 232 of U.S. trade law, citing that dependence on foreign sources posed a national security threat. Based on quotas, Argentina, Australia, Brazil, and South Korea were excluded, and Canada and Mexico were eventually excluded based on the USMCA trade agreement. Although the tariffs have been imposed worldwide, a primary issue to be addressed is the global overproduction of metals, especially by China.

For more information, contact Stuart Gosswein at stuartg@sema.org.

PRI Supports Race Tracks With Motorsports Fairness And Permanency Act Of 2021

The Motorsports Fairness and Permanency Act of 2021 (H.R. 4674 and S.2940) has been introduced in the U.S. Senate by Senators Debbie Stabenow (D-MI) and Richard Burr (R-NC). The PRI-supported bill would amend the Federal Tax Code to make the seven-year recovery period for race venue investments permanent, ensuring race track owners and investors can claim an important tax incentive for their facilities for years to come (more on that below).

“The bill will help to speed up the depreciation schedule for investments made in race facilities. If passed, this law would provide an incentive to invest in racing facilities,” said Eric Snyder, PRI’s Director of Congressional Affairs.

The Act also has bipartisan support in the U.S. Congress, having been introduced by U.S. Representative Mike Thompson (D-CA), and with eight co-sponsors as of press time, including PRI allies Rep. Richard Hudson (R-NC) and Bill Posey (R-FL), along with Terri Sewell (D-AL), Stephanie Murphy (D-FL), Tom Reed (R-NY), Jackie Walorski (R-IN), Drew Ferguson IV (R-GA), and Michael Waltz (R-FL).

Currently, accelerated depreciation of race tracks is authorized through December 31, 2025. Accelerated depreciation of race track investments applies to capital expenditures in a facility’s ticket booths, track surfaces, suites and hospitality facilities, grandstands and viewing structures, props, walls, special-purpose structures, facades, shop interiors, and buildings. In addition, support buildings such as food and beverage retailing, souvenir vending, and other non-lodging accommodations, parking lots, sidewalks, bridges, fences, and landscaping are also eligible. 

The tax incentive does not apply to transportation equipment, administrative services assets, warehouses, administrative buildings, hotels, or motels. 

For more information and to see if your race complex is eligible, contact Eric Snyder at erics@sema.org.