Barr Introduces Three Proposals To Reform Tax Code, Would Benefit Horse Industry

Congressman Andy Barr (KY-06), the Chairman of the Congressional Horse Caucus, today introduced three bills that would make simple reforms to the tax code to encourage greater investment and participation in Kentucky's signature horse industry. These 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,” 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. This change is needed because the three-year depreciation schedule better reflects the useful life of race horses, 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 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. This legislation is necessary to provide clarity and certainty within the tax code that all equine assets are available for Section 179 expensing.

The post Barr Introduces Three Proposals To Reform Tax Code, Would Benefit Horse Industry appeared first on Horse Racing News | Paulick Report.

Comments are closed