By BloodHorse Staff
March 30, 2017-U.S. Rep. Andy Barr, a Kentucky Republican and chairman of the Congressional Horse Caucus, introduced three bills March 30 that would make simple tax code reforms designed to encourage greater investment and participation in the horse industry.
The three bills include:
- H.R. 1804, the Race Horse Cost Recovery Act, would permanently reschedule racehorses that are put into service before the age of 3 into the three-year depreciation asset class. Barr said this change is needed because the three-year depreciation schedule better reflects the useful life of racehorses, as opposed to the seven-year schedule.
- H.R. 1805, the Equine Tax Parity Act, would reduce the holding period requirement from 24 months to 12 months for equine investments, allowing those 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. Barr said this legislation is necessary to provide clarity and certainty within the tax code that all equine assets are available for Section 179 expensing.
Barr said the reforms are needed to reflect the realities faced by participants in the horse industry and to provide a level playing field between equine investments and other forms of investments.
"Kentucky's signature horse industry is not only essential to the history and culture of the Commonwealth, but also to our economy," Barr said. "The reforms included in these three bills will encourage growth and investment in the equine industry, which will create jobs and benefit all Kentuckians."
The NTRA applauded Barr for his efforts on behalf of Thoroughbred racing and breeding, not just in Kentucky, but also nationally through his position as co-chair of the Congressional Horse Caucus.
"Congressman Barr has once again demonstrated his dedication to the Thoroughbred industry by introducing these pieces of tax legislation," said NTRA president 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."
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.