Despite the everchanging political climate throughout the past few years, the Specialty Equipment Market Association (SEMA) has maintained a consistent presence to combat unfair automotive laws that directly impact the motorsports industry. As the parent organization of the Performance Racing Industry (PRI), SEMA has established a Public and Government Affairs team to represent various specialty equipment market industries at local, state, and federal levels. Their mission is to ensure the longevity of an industry that contributes over $336 billion to the economy each year and supports more than 1.3 million American jobs.
Government can have a heavy hand within the automotive industry as it has the power to set regulations, implement tax policies, or create a negative public perception that can result in detrimental effects on motorsports. In 1997, the SEMA Action Network (SAN) was formed to unite vehicle clubs, enthusiasts, racers, and business owners as a political voice for the industry. The SAN advocacy experts, based in Washington D.C, believe it is essential for racers and enthusiasts to use their voices to educate lawmakers about the many positive economic, safety, and community benefits that the motorsports industry offers.
“I think one of the biggest strengths of our industry is the fact that we have such a passionate community. We care very deeply about motorsports and its future, especially drag racing,” said Karen Bailey-Chapman, SEMA Senior Vice President of Public and Government Affairs. “Our voices are really impactful and necessary for us to help educate and communicate with lawmakers.”
In the coming months, SEMA will unveil new racing-specific initiatives that they believe will help grow the drag racing sector of the motorsports industry. These initiatives will include new tax policies designed for owners of performance racing small businesses and racetracks. Recently, SEMA backed the introduction of the “Motorsports Fairness and Permanency Act,” a bi-partisan bill that seeks to amend the Federal Tax Code. This amendment would make the seven-year cost recovery period for investments in motorsports facilities a permanent fixture. As a result, racetrack owners would be able to make necessary facility improvements, ensuring that high-quality racing events will be made available to enthusiasts nationwide.
“Racetracks are an investment, and we want to make sure that owners have a safer ability within the tax code to make investments just like any other business owner,” Bailey-Chapman said. “Racing is still a business as much as it is people’s hobbies. They create jobs, they support families, and they support American manufacturing.”
In recent years, the motorsports industry has faced significant scrutiny from the Environmental Protection Agency (EPA). This scrutiny escalated when the agency attempted to ban the conversion of street vehicles into race cars, leading to widespread backlash. Although the EPA has since modified their stance, there are still unfair actions being taken against manufacturers of high-performance parts which could have a negative impact on the industry. With a new presidential administration set to take office in January, along with a new nominee for EPA Administrator, SEMA is hopeful that there will be a more open dialogue between the EPA and the motorsports industry compared to the previous administration.
SEMA believes it is crucial for government policy to remain technology-neutral in the pursuit of decarbonizing vehicles. Emission levels from vehicles 40 years ago were considerably higher than those today, thanks to advancements in alternative fuels. Historically, SEMA and the specialty equipment aftermarket industry have led the way on alternative innovations, including the conversion of older engines to cleaner fuel options such as hydrogen-fueled internal combustion engine (ICE) technology.
California currently has an electric vehicle mandate, or a ban on internal combustion engines (ICE), aimed at eliminating 100% of new ICE vehicles by 2035. The mandate, which would set an extreme precedent, is still awaiting action by the EPA before it can be signed into law. While it is possible that President Biden could sign it before leaving office, President-elect Trump has the power to reverse it on day one, a promise he frequently stressed during his winning campaign, according to Bailey-Chapman.
“The reasoning behind our opposition to the EV mandates is the fact that there’s already innovation in the marketplace and technologies to support these innovations,” Bailey-Chapman said. “Let the market continue to innovate, allow consumers to drive demand, and let us help educate and drive that innovation going forward.”
In October, Willowbank Raceway in Queensland, Australia, announced a formal ban on racers running all-electric vehicles due to the high risks associated with providing effective emergency response in the event of an incident. The statement cited numerous safety concerns, including the release of toxic and flammable battery fumes, the inability to open doors or to be towed without power, and the requirement for fire suppression systems specifically designed for electric vehicles. Willowbank Raceway’s ban on electric vehicles was released shortly after a dangerous incident involving a Jr. Dragster occurred at Wagler Motorsports Park in Lyons, Indiana, when a battery-powered Jr. Dragster erupted into a major fire, releasing large clouds of smoke and toxins into the air. Fortunately, the young driver was uninjured.
Another key issue at the forefront of SEMA’s advocacy efforts is the preservation of amateur drag racing. Many new vehicles are being manufactured with Advanced Driver-Assistance Systems (ADAS), which include both active and passive safety technologies designed to assist drivers and automate vehicle functions. These features can include automatic emergency braking and lane centering assistance. While SEMA supports improvements in vehicle safety, they also believe that ADAS should not hinder aftermarket businesses from installing products that modify vehicles or restrict owners from disabling these features while racing on a dragstrip.
“If ADAS becomes normalized in the marketplace, all vehicles will eventually have those systems. SEMA is closely monitoring what kind of impact that mandated ADAS could have on the amateur racing community,” Bailey-Chapman said. “If someone wants to take their street car and test it out on the dragstrip but can’t turn those safety systems off, that’s going to hurt the racing industry in the long run.”
While the list of key issues affecting the billion-dollar aftermarket automotive industry is extensive and continually growing, SEMA is committed to addressing all challenges that come their way. They are ramping up efforts to ensure all forms of motorsports exist for future generations to enjoy as a hobby or profession. Bailey-Chapman and the rest of the SEMA Action Network team are keeping their thumbs on the pulse of new threats emerging from the halls of Congress, but they also emphasize the significance that public perception has on their efforts.
“The vast majority that races professionally or as a hobby do so on a sanctioned facility. However, a lot of the illegal street racing that we see on TikTok and Instagram is a real challenge because it automatically brands us as irresponsible,” she said. “We have to be very thoughtful about the sport’s reputation and how the racing industry is perceived to the rest of America.”
There’s no doubt the awareness of governmental impact on motorsports has grown steadily over the years, proving the effectiveness of SEMA’s advocacy. To help maintain their positive momentum, SEMA encourages all racers and enthusiasts to use their voice to educate lawmakers and fight back against unfair automotive laws. There are several ways to get involved, but the best way to stay informed is to join the SEMA Action Network at www.semasan.com. As with all things, great strength comes with great numbers, and the motorsports community is always stronger when it works together.
This story was originally published on December 10, 2024. 
The post Stronger Together: SEMA Leads Motorsports Advocacy Efforts in Washington first appeared on Drag Illustrated.