With the Interlagos Circuit’s F1 future in doubt, the Rio de Janeiro state government is stepping in. Recently, the Sports Secretariat approved a bill granting a tax incentive of $302 million for the first two editions of the race in 2021 and 2022.
This money will be used to pay the fee required by F1 owners, Liberty Media. In addition to that, a 10-year project was green lit for the race, named “Formula 1 Rio de Janeiro 2021-2030”.
To his delight, the motion received unanimous approval at a Project Approval Committee meeting on November 26. Since then, representatives of Rio Motorsport presented the project’s approval as a guarantee that they will pay the promised fee during the Abu Dhabi Grand Prix weekend.
According to consortium leader, JR Pereira, the approval of the project is important. The idea is “to rebuild the suppliers that no longer exist in Rio de Janeiro, which no longer has so many large events”.
Since the proposal is for a 10-year F1 contract, the plan is to get fundraising authorization via the Sports Incentive Act. After two years, the fundraising project will be done annually based on the financial results presented by the organizers.
According to the minutes of the meeting, the criteria considered was timeliness and convenience. Among the ones who voted in favor of the bill were Thiago Ribeiro de Paula, acting president of Suderj and lawyer Rafael Fernandes Lira. The third and decisive vote in favor of the project came from Valnei Costa Rosa.
Lira mentioned in his speech, “Notwithstanding the importance of the project for the city / state of Rio de Janeiro, it was initially controversial within the voter to approve the values envisaged in the project and its proposal. enjoyment.”
In a note to UOL Esporte , the Secretariat of Sports said, “It should be clarified that the total amount of the incentive claimed is R $ 302,400,000.00 and that the project has annual fruition limits, so as to prevent it from exceeding the annual ICMS tax waiver ceiling. impairment or limitation of the enjoyment of other projects, especially in view of the resumption of economic activity that results in increased revenue. In addition, the granting of the tax benefit is subject to the presentation and validation of the sponsor who will make the financial contribution.”