Breeders of Kentucky-bred horses that win races either in state or anywhere in the United States can begin receiving Kentucky Thoroughbred Breeders' Incentive Fund awards at the close of 2006, according to regulations proposed by the Kentucky Horse Racing Authority.The regulations were approved by the KHRA Dec. 19."After the races of 2006, we will begin making calculations to determine the amount of awards to be paid in 2007," said Lisa Underwood, KHRA general counsel. "We're not going to give out the money until the end of the year in one lump-sum payment because we've got to know if we're going to be able to cover the base amount or if we're going to have more money in the fund."Under the proposed regulations, Kentucky-bred horses foaled before 2007 that are eligible to receive awards under the Kentucky Thoroughbred Development Fund are also eligible to receive breeder incentive funds. An application for eligibility is required no later than Feb. 1 of the year following the year in which the horse raced in a race that would qualify him or her for an incentive award. A $30 registration fee is required.Underwood said for the purpose of horses foaled before 2007, written notices would be sent to the breeder of the KTDF-eligible winning horse.For horses foaled during or after 2007, both the foal and his or her dam must be qualified and registered to be eligible to receive awards. Regulations require mares to reside in the state from the time of conception until foaling, unless the mare is a maiden and is continuing her racing career at which time she must be returned to the state. The mare also may be transported outside of the state if an emergency medical procedure is required to protect the health of both the mare and foal.If the procedure is required, the breeder must request permission in writing within 14 days after the mare leaves the state. The mare must remain under the care of a veterinarian during the entire period of time she is not residing in Kentucky.Breeders must register the unborn foal with the KHRA within 45 days of the first cover of the qualified mare. An application form signed by the foal's breeder and stallion manager with the name of the mare and stallion is required along with a $30 registration fee. The Kentucky breeders' incentive program is broken into five tiers rewarding breeders of Kentucky-breds that win in maiden special weight, allowance, and stakes company, both in state and nationally. The program is funded by the 6% sales tax on stallion fees.