WASHINGTON – Today, Congressman Andy Barrapplauded the Senate’s passage of H.R. 5771, the Tax Increase Prevention Act of 2014, a legislative package designed to prevent a series of automatic tax increases at the end of the year. H.R. 5771 incorporates a provision advocated by Congressman Barr that is critical to Kentucky’s signature equine industry.

Based off legislation Congressman Barr introduced last year known as H.R. 2212, the Race Horse Cost Recovery Act, Section 121 of H.R. 5771 extends through the end of 2014 the three-year depreciation schedule for all racehorses, which expired at the end of 2013.

The House of Representatives passed H.R. 5771 on December 3 by a bipartisan vote of 378-46, with Congressman Barr’s support. The United States Senate followed suit last night, by a bipartisan vote of 76-16.

“I appreciate Chairman Dave Camp’s support and was glad to work with the Ways and Means Committee to ensure the continued vitality of Kentucky’s signature horse racing industry,” said Barr. “This provision also reaches beyond the Bluegrass to protect the 1.4 million direct and indirect jobs that support America’s horse industry, as well as a large number of other agriculture industries that rely on a vibrant horse industry for their own survival. I am glad that this important provision has been included in H.R. 5771 and look forward to the President signing this bill into law. I will continue to advocate for a tax code that promotes economic growth and supports our signature equine industry.”

Background:

In addition to direct discussions between Congressman Barr and House Ways and Means Committee Chairman Dave Camp and their staff:

  • In May 2013, Congressman Barr wrote a letter to Chairman Camp requesting that the Committee prioritize this tax provision in any upcoming legislation.
     
  • In November 2014, Congressman Barr wrote a letter to Chairman Camp asking that he give the three-year depreciation schedule every consideration as a critical component of the larger legislative package. He also reiterated the importance of this provision to his constituents, the signature industries of central and eastern Kentucky, and the American horse industry.

In May 2013, Congressman Andy Barr introduced H.R. 2212, the Race Horse Cost Recovery Act, which would make permanent for all race horses the three-year depreciation schedule which expired at the end of 2013.