12/30/2005 1:00AM

Bonus plan for Kentucky breeders begins

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Kentucky Gov. Ernie Fletcher signed an emergency regulation Thursday that put into effect an incentive fund for the Kentucky horse breeders, according to published reports. The fund will award an estimated $12 million to Thoroughbred breeders in subsidies in 2006.

Under the incentive program, a breeder of a Kentucky-bred horse that wins a maiden special weight, allowance, or stakes race in Kentucky will receive an award equal to 25 percent of the winner's share of the purse, capped at $10,000. A breeder of a Kentucky-bred horse that wins a maiden special weight or allowance race outside of the state will receive an award equal to 10 percent of the winner's share, provided the horse is no more than 4 years old. This award is also capped at $10,000. Other parts of the program include awards to breeders of winners of Grade 1 races.

The plan was made possible by legislation passed in 2005 that diverts the sales tax paid on stud fees to the subsidy program.