Welcome to What’s Racing Through Washington newsletter, your one stop shop for all things Thoroughbred racing in Washington, D.C. As Congress springs into action, it is increasingly important to understand the latest policy developments and potential impacts to our industry. We hope you will enjoy the newsletter and we look forward to engaging with you more on issues impacting our industry.

Former Speaker of the House John Boehner (R-OH) and NTRA President and CEO Tom Rooney with the 1989 Sunday Silence Kentucky Derby Trophy at the Inaugural NTRA Kentucky Derby Kickoff Reception on Capitol Hill. 

NTRA Hosts Inaugural Kentucky Derby Congressional Reception

On Thursday, April 27, the NTRA hosted our first ever Kentucky Derby Kickoff Reception on Capitol Hill. The event’s goal was to increase awareness for the NTRA on Capitol Hill, and to make sure that our presence was felt in advance of the Triple Crown. The event was a resounding success with some 400 attendees, including many key staff that play critical roles in the legislative process.

We had 12 Members of Congress in attendance, including:

  1. Former Speaker of the House John Boehner
  2. Andy Barr (R-KY-06) – House Financial Services Committee (Keeneland)
  3. Jim Baird (R-IN-04) – House Agriculture Committee
  4. Steve Cohen (D-TN-09) – House Transportation and Infrastructure Committee
  5. Anthony D’Espisito (R-NY-04) – House Transportation and Infrastructure Committee
  6. Andrew Garbarino (R-NY-02) – House Financial Services Committee
  7. Josh Gottheimer (D-NJ-05) – House Financial Services Committee
  8. Brett Guthrie (R-KY-02) – House Energy and Commerce Committee
  9. Dave Joyce (R-OH-14) – House Appropriations Committee
  10. Morgan McGarvey (D-KY-03) – House Small Business Committee (Churchill)
  11. Dan Newhouse (R-WA-04) – House Appropriations Committee
  12. Paul Tonko (D-NY-20) – House Energy and Commerce Committee (Saratoga)

In addition, the National Museum of Racing was kind enough to lend us the 1989 Sunday Silence Derby Trophy and Coolmore provided us with halters worn by Triple Crown winners American Pharoah and Justify. All cocktails were served in official 149th Kentucky Derby glasses ordered from Churchill Downs. This will be an annual event going forward, please do not hesitate to reach out to learn more (jbonfitto@ntra.com)!

Congressman Morgan McGarvey (D-KY), Congressman Andy Barr (R-KY) with Tom Rooney. 

Congressmen Barr and McGarvey Introduce Legislation to Incentivize Investment in the Equine Industry

On April 27, 2023, Congressmen Barr and McGarvey reintroduced two pieces of bipartisan legislation to incentivize investment in the equine industry. The Race Horse Cost Recovery Act of 2023 would make the three-year depreciation schedule permanent for racehorses, regardless of their age when put into service. Historically, Congress has reauthorized this provision in the tax law on an annual basis but it has been expired since 2021. 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.

Upon the introduction of both pieces of legislation, NTRA President and CEO Tom Rooney (former US Congressman) issued the following statement:

“I commend Congressmen Barr and McGarvey for their dedicated leadership to promoting investment in the thoroughbred industry. Initiatives like 3-year depreciation for yearlings and other initiatives crucial to the furthering of the equine economy. We look forward to working with their colleagues in both the House and the Senate to get these bipartisan pieces of legislation to the President’s desk this Congress.”

The NTRA will continue to engage with Congress and monitor the progress of these bills as they move through the legislative process.

Capitol Hill staff attending the Inaugural NTRA Kentucky Derby Kickoff Reception.

Economic Investment Alliance Backed Bonus Depreciation Legislation Introduced in House and Senate

The 2017 Tax Cuts and Jobs Act (TCJA) provided companies with the opportunity to fully and immediately expense their investments like horses, machinery, and equipment. However, this 100 percent bonus depreciation was only in effect from 2018 through 2022, and starting this year is phasing down 20 percentage points per year. By 2027, there will be no bonus depreciation allowed for these investments at all. When businesses can more quickly recover the costs of assets that are eligible for bonus depreciation, they invest more in those assets. The Accelerate Long-term Investment Growth Now (Align) Act, which Senator Lankford (R-OK) has introduced in the Senate and Rep. Arrington (R-TX) has introduced in the House, would make the 100% bonus depreciation provision permanent. NTRA along with our coalition partner in the Economic Investment Alliance will continue to engage Congress to advocate for the swift passage of this legislation.

Read more about the legislation HERE.

1989 Sunday Silence Kentucky Derby Trophy at the Inaugural NTRA Kentucky Derby Kickoff Reception on Capitol Hill. 

NTRA and H-2B Workforce Coalition Sends Letter to House and Senate Appropriations Committee Leadership Urging Cap Relief

On April 24, 2023, NTRA along with other members of the H-2B Workforce Coalition sent a letter to House and Senate Appropriation committee Leadership urging the inclusion of H-2B returning worker exemptions or other meaningful H-2B cap relief in the Fiscal Year 2024 Department of Homeland Security appropriations bill. The H-2B cap poses a significant burden on the Thoroughbred industry as it restricts the availability of temporary non-agricultural workers, including experienced horse grooms and stable hands. With a limited number of visas available, horse trainers and owners have struggled to fill crucial positions. This continued cap limitation hampers the industry’s ability to function efficiently and hinders its overall growth and competitiveness.

Read the full letter HERE.