Barr and McGarvey team up on horse racing legislation
WASHINGTON — With horse racing’s marquee event, the Kentucky Derby, taking place Saturday, two Kentucky lawmakers are making a push for legislation designed to help those who take part in the sport.
Rep. Andy Barr, R-Ky., of Lexington, where the Keeneland racetrack is located, and Rep. Morgan McGarvey, D-Ky., of Louisville, which is home to Churchill Downs, are working together on two measures that would provide more favorable tax benefits to racehorse owners.
“The bills we are talking about right now make it easier for people to buy even a small, small share of a racehorse to enjoy in that excitement,” McGarvey told Spectrum News.
The Racehorse Tax Parity Act would reduce the holding period for equine assets to be considered long-term capital gains. The bill proposes a 12-month timeline, which is the standard for most other assets.
The Racehorse Cost Recovery Act of 2023 would make the three-year depreciation schedule permanent for racehorses, regardless of their age when put into service. Until now, Congress has been approving this provision on an annual basis.
“Permanently delivering these tax incentives for owners and breeders will strengthen investment in our signature equine industry,” said Barr in a statement. “I am proud to lead this effort with my friend, colleague, and fellow Kentuckian Congressman McGarvey.”
Barr has introduced similar legislation in the past, but this is the first time these bills are being co-sponsored by a Democrat.
“The breeding operation is a big part of our economy,” said McGarvey. “It employs a lot of people in the state, and we want to make sure that the sport is even more accessible.”
According to Kentucky state data, the equine industry provides 80,000 jobs in the state.
Another signature industry Barr and McGarvey say they are looking to focus on together is the bourbon industry. The two lawmakers serve as co-chairs of the bourbon caucus in Washington.
By: Julia Benbrook
Source: Spectrum News