A Kentucky Horse Racing Authority subcommittee has proposed a state, national, and bonus component for the state's new breeders incentive program based on mare residency. "While the recommendation was not unanimous, a majority of the subcommittee believes it accommodates the greatest number of interests, will do the most to create jobs, and stimulate the horse breeding industry in Kentucky," said subcommittee chairman Doug Hendrickson in a release. In order to qualify for the proposed rewards program, a mare must reside in Kentucky from the time of breeding until her foal is born. The qualification is meant to ensure breeders who receive checks from this program have contributed a significant economic impact and created jobs in Kentucky, Hendrickson said.Details of the subcommittee's recommended proposal are: Kentucky First Component-An incentive would be granted to the breeders of the winners of all maiden, allowance, and stakes races in Kentucky. The bonus would be equal to 25% of the winning purse, excluding supplemental funds, and the maximum bonus to the breeder would be $10,000 per race. There would be no age limitation for the horses.National Component-An incentive would be granted to breeders of the winners of maiden and allowance races held in other states for 2-, 3- and 4-year old Thoroughbreds. The bonus would be equal to 10% of the winning purse, excluding supplemental funds, with a maximum bonus of $10,000 per race. Remainder Component-The subcommittee is also discussing returning some portion of any surplus money to the fund in order to provide a "cushion" for paying the above components. Additional considerations are for an incentive to be awarded for certain stakes races in Kentucky and/or the United States. The KHRA will also consider recommendations for breeders' incentives for Standardbreds and all other breeds at its Nov. 21 meeting.Three breeders' incentive programs, expected to generate $15 million annually, were part of tax modernization legislation sponsored in the 2005 General Assembly by Sen. Damon Thayer. The funding for the incentives will be generated through the 6% sales tax on stallion fees.