03/19/2005 12:00AM

Fletcher signs incentive bill

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Kentucky Gov. Ernie Fletcher on Friday signed into law a bill creating a state breeder-incentive program for all breeds of horses.

The new law will apply the state's 6 percent sales tax on stud fees for stallions standing in Kentucky to encourage breeding and foaling horses in Kentucky. The funds will be split among Thoroughbreds, Standardbreds, Quarter Horses, and other breeds. Each breeders' group will develop its own distribution plan for the funds.

The sales tax on stud fees generated $14 million in revenue for the state budget in 2004.