A tax modernization plan that includes breed development provisions was approved by the Kentucky House and Senate March 8 and now goes to Gov. Ernie Fletcher for his signature.
The programs will be funded through the 6% sales tax on stud fees, which generates about $15 million a year. The Kentucky Thoroughbred Breeders' Incentive Fund will receive 80%, the Kentucky Standardbred Breeders' Incentive Fund 13%, and the Kentucky Horse Breeders' Incentive Fund 7%.
The funds will accrue beginning July 1, with program scheduled to begin Jan. 1, 2006. The Kentucky Horse Racing Authority will promulgate administrative regulations to govern and implement the funds.
"I am grateful to Gov. Fletcher for his commitment to Kentucky's top agricultural industry," said Sen. Damon Thayer, who championed the program. "This incentive for the horse breeders will help Kentucky retain its position as the horse capital of the world."
Thayer visited with the governor last November and asked that he include the incentives in the tax modernization plan.