Washington, D.C.— Today, U.S. Congressman Andy Barr (R-KY-06), Co-Chair of the Congressional Horse Caucus, celebrated major wins for the thoroughbred horse racing industry contained in the One Big Beautiful Bill Act (OBBBA). Congressman Barr worked closely with industry advocates and led the charge on Capitol Hill to ensure these victories were included in the final OBBBA package. Congressman Barr testified in Congress to their importance and regularly advocated with Congressional leadership along the way. President Donald Trump signed the OBBBA into law on Friday.
“By making bonus depreciation permanent and protecting small-business loss carryovers, OBBBA delivers targeted but a critical boost for our signature horse industry,” said Congressman Barr. “The thoroughbred horse racing industry is a special part of Kentucky, and this bill ensures it will thrive for generations to come.”
“Thanks to the efforts spearheaded by Congressman Barr, Thoroughbred racing will come away with significant gains from the One Big Beautiful Bill. It can’t be overstated how important permanent 100% bonus depreciation is to the sport,” said Tom Rooney, President and CEO of the National Thoroughbred Racing Association. “Equally as important was getting the language changing section 461(l) removed. Those changes to the excess business loss carryover would have wiped out many gains that those in the horse industry would have seen with 100% bonus depreciation. I’m grateful for all of the hard work that the Congressman put into getting this done for Thoroughbred breeding and racing.”
“Congressman Barr’s work to secure permanent 100% bonus depreciation and other key tax provisions in this legislation is a significant win for the Thoroughbred industry. These measures provide much-needed stability for owners and breeders, support reinvestment in bloodstock and infrastructure and strengthen the long-term health of our sport. We appreciate his continued leadership and advocacy on behalf of the industry,” said Shannon Arvin, Keeneland President & CEO.
“On behalf of the great sport of Thoroughbred racing, we extend our sincere appreciation to Congressman Andy Barr and his team for their efforts,” said Drew Fleming, President and CEO of Breeders’ Cup Limited. “Congressman Barr’s leadership and continued support will help preserve our proud heritage and continue to cultivate economic growth in our industry by encouraging investment in Thoroughbred farms and racing operations, therefore sustaining an extensive workforce across the country. We are truly grateful for Congressman Barr’s steadfast commitment to Thoroughbred racing and his recognition of the significant economic impact our sport makes on the nation and around the world.”
Key victories for the horse industry include:
- Permanent 100% Bonus Depreciation — The final bill locks in full expensing for eligible business investments—including horses, breeding stock, vehicles, and farm equipment—permanently. This immediate deduction will encourage reinvestment and growth throughout rural America.
- Restored Net Operating Loss Carryover under Section 461(l) — Horse owners and small farm operators will now be able to carry forward excess business losses as net operating losses—ensuring they receive the full tax benefit from bonus depreciation.
- Stable Tax Environment for Breeders and Farm Owners — For equine enterprises that require multi-year planning and capital-intensive investments, the permanence of these provisions offers predictability—enabling expansion, modernization, and long-term hiring.