Congressman Andy Barr (KY-06), the Chairman of the Congressional Horse Caucus, introduced three bills that would make reforms to the tax code to encourage greater investment and participation in Kentucky's signature horse industry.
“Kentucky's signature horse industry is not only essential to the history and culture of the Commonwealth, but also to our economy,” said Congressman Barr. “The reforms included in these three bills will encourage growth and investment in the equine industry which will create jobs and benefit all Kentuckians.”
According to the University of Kentucky Department of Agricultural Economics, Kentucky's equine industry employs more than 40,000 Kentuckians and has a $3-billion economic impact.
H.R. 1804, the Race Horse Cost Recovery Act, would permanently reschedule race horses that are put into service before the age of two into the three-year depreciation asset class.
H.R. 1805, the Equine Tax Parity Act, would reduce the holding period requirement from 24 months to 12 for equine investments, allowing equine investments to qualify for capital gains tax treatment on equal terms with similar types of assets.
H.R. 1806, the Race Horse Expensing Certainty Act, would allow all investments in racehorses to be immediately expensed consistent with Section 179 of the Internal Revenue Code.
“Congressman Barr has once again demonstrated his dedication to the Thoroughbred industry by introducing these pieces of tax legislation,” commented NTRA President and CEO Alex Waldrop. “The NTRA and its federal legislative team look forward to working with Congressman Barr to pass this and other federal legislative and regulatory measures as part of our overall agenda in the 115th Congress.”
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