Washington, D.C.— U.S. Congressman Andy Barr (KY-06) reintroduced legislation to incentivize investment in Kentucky’s signature equine industry. The Equine Tax Fairness Act would make the three-year depreciation schedule permanent for racehorses, regardless of their age when put into service. Currently, Congress must reauthorize this provision in the tax law on an annual basis.
Additionally, this legislation would reduce the holding period for equine assets to be considered long term capital gains, putting them on a level playing field with other similar assets. Congressman Barr’s bill is endorsed by the National Thoroughbred Racing Association (NTRA), the Kentucky Thoroughbred Association, the Jockey Club, the Thoroughbred Owners and Breeders Association, Keeneland, and the American Horse Council.
“Permanently delivering tax incentives for owners and breeders will strengthen investment in our signature equine industry,” said Congressman Barr, who serves as Co-Chair of the Congressional Horse Caucus. “I want to continue the momentum started with the enactment of the Horseracing Integrity and Safety Act to push another key industry initiative across the finish line that will help solidify the sport for decades to come.”
“The three-year depreciation of racehorses (similar to other investment assets) is critically important to encourage robust investment in Thoroughbred horses and to maintain the vibrant economy and trade we have seen throughout this Thoroughbred sales cycle and consistently over the past 85 years at Keeneland,” said Shannon Arvin, President and CEO of Keeneland. “We appreciate Congressman Barr’s consistent support of this legislation and the entire Thoroughbred industry.”
“Congressman Barr understands the horse racing industry and appreciates the impact this bill would have on attracting and maintaining ownership in racehorses,” said Alex Waldrop, President and CEO of NTRA. “We thank him for introducing the Equine Fairness Act and for helping support an industry that is a job-creating economic engine for his home state of Kentucky and for other states. Both provisions offer a level of tax fairness and flexibility that racehorse owners seek when determining their level of investment. This bill simply is good for business.”
“The Jockey Club wholeheartedly supports the Equine Tax Fairness Act, introduced by Congressman Barr,” said James Gagliano, President of the Jockey Club. “This bill will put horse ownership on par with other investment assets. The three-year depreciation schedule accurately reflects the typical career of a racehorse since nearly three-quarters of foals that race have a career of four years or less. This change has been enacted by Congress on a temporary, year-to-year basis since 2008, and needs to be permanent law.” You can read the Jockey Club’s full statement on the bill here.
“The Kentucky Thoroughbred Association endorses the Equine Tax Fairness Act, and is very grateful to Congressman Andy Barr for introducing it. Kentucky breeders produce foals that become racehorses in 38 states, and the 3-year depreciation encourages racehorse ownership which we know supports 241,000 direct racing sector jobs nationwide as well as the 60,000 direct, indirect and induced jobs in the Commonwealth of Kentucky,” said Chauncey Morris, Executive Director of the Kentucky Thoroughbred Association.
“The Thoroughbred Owners and Breeders Association fully endorses Congressman Barr’s bill to reward investment in our great sport,” said Dan Metzger, President of the Thoroughbred Owners and Breeders Association. “We thank him for his consistent support for owners and breeders and the Thoroughbred horse racing industry as a whole.”
“The American Horse Council is pleased to endorse Rep Barr's Equine Tax Bill, which will help ensure growth and investment in the $122 billion equine industry,” said Julie Broadway, President American Horse Council.