Tax Package Becoming Reality?
Last week, legislators unveiled a much-anticipated tax package framework, presenting a detailed $80 billion proposal. This agreement, crafted between House Ways and Means Committee Chair Jason Smith (R-MO) and Senate Finance Committee Chair Ron Wyden (D-OR), allocates funds evenly between business tax benefits and an expanded child credit. A pivotal component of this proposed tax package involves extending 100% bonus depreciation until the conclusion of 2025. Notably, bonus depreciation, a vital economic spark for the equine sector since its inclusion in the Tax Cuts and Jobs Act of 2017, has been a central focus in NTRA’s lobbying efforts in Washington, D.C. The legislation also seeks to retroactively elevate 2023 purchases to the 100% bonus depreciation level, which were previously at 80%.
However, challenges loom, with Rep. Richard Neal (D-MA), the leading Democrat on the House Ways and Means Committee, and Senator Mike Crapo (R-ID), the chief Republican on the Senate Finance Committee, having not yet endorsing the proposal. This has fueled skepticism regarding the package’s potential passage into law. Democrats advocating for a more generous child tax credit and Republicans expressing concerns over costs and pay-fors contribute to the lingering uncertainties. Despite these hurdles, Wyden emphasizes the urgency of passing the package before the tax filing season commences on January 29.
Recognizing the significance of this legislative effort, NTRA is actively engaged in lobbying efforts to garner support for the tax package, which would have a substantial positive impact on our industry.
Congress Approves Yet Another Short-Term Funding Bill
On Thursday, January 18, 2024, Congress approved yet another short-term spending bill to prevent a partial US government shutdown scheduled to commence on January 20. The temporary measure aims to provide funding for certain US agencies, facing an imminent funding shortfall until March 1, and others until March 8. Speaker Mike Johnson (R-LA) faced opposition from some Republican hardliners who were displeased with his reversal of a November promise to avoid further temporary funding extensions. These hardliners sought to leverage the threat of a shutdown to compel President Joe Biden to accept changes in border policy.
Despite attempts by hardline Republicans in the House Freedom Caucus to derail the interim funding by introducing conservative demands on immigration policy changes, Speaker Johnson rebuffed these efforts. The short-term funding package is intended to provide lawmakers with time to finalize negotiations on annual funding for the fiscal year that commenced on October 1. However, the six-week extension to March 1 may prove insufficient, especially considering that the House is scheduled for a three-week break during that period, raising the likelihood of another short-term spending bill.
Both parties’ leaders have agreed on an effective $1.66 trillion spending cap for the year but are still negotiating the allocation of funds among government departments and programs. If the government continues operating under interim funding on April 30, automatic across-the-board spending cuts, as per provisions in last June’s debt ceiling compromise, would be triggered. This threat may serve as a push for lawmakers to reach a final agreement on the 2024 spending.
House Farm Bill Accelerated: Chairman Plans Swift Progress in the Coming Weeks
House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA) revealed that he hoped to unveil the Farm Bill in about three weeks. The proposed timetable, dependent on receiving floor time commitment from House Speaker Mike Johnson (R-LA), aims to complete committee action by March. The $1.5 trillion, five-year Farm Bill reauthorization, initially intended for the previous year, has been rescheduled for 2024. Congress granted an extension of the 2018 Farm Bill until September 30, providing some breathing room. However, significant challenges persist, including the difficulty of advancing substantial legislation in an election year and addressing the ongoing battle over governmentwide funding extensions to avert a shutdown. The successful passage through Congress also relies on achieving bipartisan consensus on the extensive Farm Bill; a task complicated by the dynamics within the House committee and the necessity of Democratic support in the Senate. Thompson emphasizes the desire to secure agreement with Democrats on the House bill before its introduction. As mentioned in the past, in the 2008 Farm Bill, NTRA secured a provision allowing uniform and accelerated depreciation of Thoroughbreds over a 3-year period. Should this Farm Bill include a tax element, NTRA has been in constant communication with members of the House and Senate Agriculture committee for the inclusion of this provision, which expired at the end of 2021.
53rd Annual Eclipse Award Ceremony to be Broadcast Live Thursday on FanDuel TV
Thoroughbred racing’s black-tie night of the year, the Academy Awards for horseracing, the National Thoroughbred Racing Association (NTRA), on Thursday January 25 will be hosting the 53rd Annual Eclipse Awards at The Breakers Palm Beach. The show will air live on FanDuel TV and Racetrack Television Network (RTN), with the Keeneland red-carpet show beginning at 6:30pm ET, with the ceremony following at 7:30pm ET.
The Eclipse Awards will honor the 2023 human and equine Champions of Thoroughbred racing, the evening will culminate with the announcement of the 2023 Horse of the Year. In addition to FanDuel TV and RTN, the ceremony will be streamed live on multiple outlets including: NTRA.com, americasbestracing.net, bloodhorse.com, equibase.com, and NTRA’s youtube channel. Tune in to see this year’s best human and equine athletes be crowned champion in each of their respective categories.
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