The United States Senate passed its version of the Farm Bill Dec. 14 by a vote of 79 to 14. Included in the legislation is the Equine Equity Act, which would reduce the capital gains holding period for horses from two years to one and accelerate and make uniform the depreciation for racehorses over a three-year period.
The Equine Equity Act had bipartisan co-sponsors in Republican Sen. Mitch McConnell of Kentucky and Democratic Sen. Blanche Lincoln of Arkansas.
The House of Representatives has passed its own version of a comprehensive Farm Bill. The House and Senate are expected to meet during the first quarter of next year to resolve differences between the two bills and prepare a final version.
The final version would then be voted on by both the House and Senate and, if passed, the bill would then be sent to President Bush for his signature or veto.
“We appreciate the Senate’s quick and decisive action on this important piece of legislation that modernizes the tax code with respect to equine industry investments,” National Thoroughbred Racing Association president and chief executive officer Alex Waldrop said in a statement. “I would like to particularly thank Senator McConnell for his leadership and Senator Lincoln for providing bi-partisan support.”