McGarvey, Barr Reintroduce Bipartisan Legislation to Strengthen Kentucky’s Equine Industry
Today, Congressmen Morgan McGarvey (KY-03) and Andy Barr (KY-06) reintroduced two bipartisan bills to strengthen Kentucky’s signature equine industry by incentivizing investment and ensuring tax fairness.
The Racehorse Cost Recovery Act would make permanent the three-year depreciation schedule for racehorses, regardless of their age when placed into service—eliminating the need for annual congressional reauthorization. The Racehorse Tax Parity Act would shorten the holding period for equine assets to qualify for long-term capital gains treatment and align them with similar investments, ensuring a level playing field.
“I’m proud to once again work with my colleague and friend, Congressman Barr, to strengthen our state's signature equine industry,” said Congressman Morgan McGarvey. “This important, bipartisan legislation will grow our state's economy and ensure Kentucky remains the horseracing and breeding capital of the United States.”
"Kentucky's equine industry is not just a cultural cornerstone but also a vital economic driver for our Commonwealth," said Congressman Andy Barr, Co-Chair of the Congressional Horse Caucus. "By making the three-year depreciation schedule for racehorses permanent and reducing the holding period for equine assets to qualify for long-term capital gains treatment, we are providing much-needed certainty and fairness in the tax code. These reforms will encourage investment, support the livelihoods of countless Kentuckians, and ensure that our horse industry remains competitive on a national and global scale. I am grateful to lead this effort with my friend and fellow Kentuckian, Morgan McGarvey.”
“We are grateful to Congressman Barr and Congressman McGarvey for their continued support of legislation that is critical to the future success of our industry," said Shannon Arvin, President and CEO of Keeneland. "Policies that promote investment in racehorses are vital to sustaining a strong and dynamic Thoroughbred marketplace. Policies that promote investment in racehorses are vital to sustaining a strong and dynamic Thoroughbred marketplace."
"As Congress navigates critical tax policy decisions with key provisions of the 2017 Tax Cuts and Jobs Act set to expire this year, Congressman Barr and Congressman McGarvey have been tireless champions for the thoroughbred industry," said former Congressman and NTRA President and CEO Tom Rooney. "Their unwavering commitment to securing essential tax incentives, such as 3-year depreciation for yearlings and a reduced 12-month holding period for equine assets to qualify for long-term capital gains treatment, has the potential to drive investment and economic growth in our sport."
"Congressman Barr and McGarvey’s leadership on these initiatives will strengthen the equine economy and provide much-needed stability for our sport," Rooney continued. "As lawmakers work through these pivotal tax decisions, their dedication ensures that these critical provisions remain a priority, positioning the sport for continued success. NTRA looks forward to working with both the House and Senate to get these bills passed into law.”
“Permanent tax incentives for racehorse owners is vital to the economy of the Commonwealth of Kentucky. Kentucky breeders, from Warren and Oldham Counties to the heart of the Bluegrass, sell Thoroughbred horses racing in fifteen states. These important depreciation tools are relied upon by racehorse owners across the country. The Kentucky Thoroughbred Association is grateful to Congressmen Barr & McGarvey for their initiative on this important legislation.” – Executive Director of the Kentucky Thoroughbred Association Chauncey Morris
The Jockey Club strongly commends Congressmen Andy Barr (R-KY) and Morgan McGarvey (D-KY) for introducing the Racehorse Cost Recovery Act of 2025 and the Racehorse Tax Parity Act of 2023. These bills will put horse ownership on par with other investment assets where they should have been all along. These bills address two key deficiencies of the tax code that unfairly single out Horseracing, an industry that directly and indirectly contributes $36.6 billion to the GDP and provides 472,000 jobs nationwide. This reform is needed to ensure the tax code treats our industry like other businesses, and we applaud Congressman Barr and McGarvey for their efforts on behalf of this great industry. -The Jockey Club President and COO James Gagliano
"Breeders' Cup applauds Representatives Barr and McGarvey for their leadership and dedication in reintroducing this important legislation with initiatives that are vital to the long-term sustainability of our great sport,” said Drew Fleming, President & CEO of Breeders’ Cup Limited. “This legislation will drive critical investment in racing, strengthening its foundation and ensuring its continued success."
Both bills have received strong support from industry leaders, including the National Thoroughbred Racing Association (NTRA), National Thoroughbred Association, Keeneland, Breeders' Cup, and the Jockey Club.