The United States Senate followed the U.S. House of Representatives and passed the Tax Increase Prevention Act of 2014 (H.R. 5771) on December 16 to extend several tax provisions that either expired or were reduced at the end of 2013. This legislation contains incentives important to those investing in the horse racing and breeding industry, including one that retroactively extends three-year depreciation of all racehorses for 2014. The House passed the legislation on December 3.
“The renewal of three-year tax depreciation for racehorses indicates that lawmakers understand the contributions our industry makes to job creation and the country’s overall economic health,” said Alex Waldrop, NTRA President and CEO. “We are especially grateful to Senate Minority Leader Mitch McConnell (R-KY) and Rep. Andy Barr (R-KY) for their leadership and support of this provision which is so important to horse owners and breeders.”
Three-year racehorse depreciation was in place from 2009 through 2013 as part of the 2008 Farm Bill. This schedule more accurately reflects the length of a racehorse’s career than the previous seven-year schedule and is more equitable for owners.
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