December 15, 2015

Several tax incentives important to those invested in the horse racing and breeding industry, including one that retroactively extends three-year depreciation for all racehorses, are poised for a multi-year extension by Congress. Late Tuesday, Republican and Democratic negotiators in the House finalized related comprehensive budget and tax legislation which Congress will likely pass by the year’s end.

The legislation also includes 50 percent bonus depreciation for qualified new depreciable property, such as yearlings and new farm equipment, and the Section 179 expense allowance at $500,000 with a $2 million threshold for qualified new or used depreciable property such as broodmares.

“A multi-year extension of three-year tax depreciation for racehorses is welcome news for Thoroughbred owners and breeders,” said Alex Waldrop, NTRA President and CEO. “Accelerated cost recovery encourages investment and creates jobs in Thoroughbred racing while the multi-year extension of this incentive helps owners plan for the future.”

Three-year racehorse depreciation more accurately reflects the length of a racehorse’s career than the previous seven-year schedule and is more equitable for owners.

The NTRA will update the industry on the progress of this legislation as it makes its way to the President’s desk for signature.