Freshman congressman Andy Barr (R-Lexington) of Kentucky introduced a bill on May 24 in the U.S. House of Representatives to make permanent for all racehorses the 3-year depreciation schedule, which is subject to expire at the end of the year. The Race Horse Cost Recovery Act (HR-2212) would extend the current policy, enacted by the 2008 Farm Bill, which allows taxpayers to recover the cost of property over its approximate economic life, in this case a horse’s racing career, through tax write-offs. Prior to 2008, the U.S. tax code subjected racehorses to a seven-year tax depreciation schedule. If the current policy is allowed to lapse, only racehorses that begin training after the age of two will still be eligible for the three-year schedule. Barr argued that this would exclude horses put into training as yearlings, and put them on a depreciation schedule that would outlast many of their racing careers. “Kentucky’s horse industry contributes $4 billion annually to our economy and provides over 80,000 direct and indirect jobs to Americans,” Barr said. “We must protect this investment and these jobs for the sake of Kentucky’s hard-working families.” Earlier this year, Barr introduced the Equine Tax Parity Act (HR-998), which would reduce the capital gains holding period on horses from 24 months to 12 months, bringing the equine industry on par with most other business assets in becoming eligible for a lower tax rate.