Ky. congressmen introduce bill incentivizing equine industry
Two members of Kentucky’s Congressional delegation introduced two pieces of bipartisan legislation on Thursday that are designed to incentivize Kentucky’s signature equine industry.
Congressmen Andy Barr, R-Lexington, and Morgan McGarvey, D-Louisville, joined forces on the two measures.
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. Currently, Congress must reauthorize this provision in the tax law on an annual basis.
The Racehorse Tax Parity Act 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.
Congressmen Barr and McGarvey’s bills are endorsed by the National Thoroughbred Racing Association (NTRA), the Kentucky Thoroughbred Association, the Thoroughbred Owners and Breeders Association, Keeneland, the American Horse Council, and the Jockey Club.
“Permanently delivering these tax incentives for owners and breeders will strengthen investment in our signature equine industry,” said Barr, who serves as Co-Chair of the Congressional Horse Caucus. “I am proud to lead this effort with my friend, colleague, and fellow Kentuckian, Congressman McGarvey. We will continue to work together to deliver results for Kentucky’s signature industries.”
“I’m proud to join my colleague and friend, Congressman Barr, in this effort to strengthen our state's signature equine industry,” McGarvey stated. “This legislation will deliver much-needed tax incentives for owners and breeders, fostering growth and investment in this critical industry and ensuring Kentucky remains the horseracing and breeding capital of the United States.”
“Together, these bills will put horse ownership on par with other investment assets where they should be,” noted Jockey Club President and COO James Gagliano. “The U.S. horse racing industry 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.”
By: Tom Latek
Source: Kentucky Today