The U.S. House of Representatives July 10 passed a bill to amend the Internal Revenue Code of 1986 to modify and make permanent the bonus depreciation, according to an American Horse Council advisory.
The bill was introduced by Congressman Pat Tiberi , a Republican from Ohio.
"At the end of 2013, a number of favorable tax provisions for horse owners, breeders and businesses expired, including so-called bonus depreciation," the AHC said in a statement released July 11. "Bonus depreciation allows anyone in a business to write off up to 50% of new property purchased and placed in service in a tax year, including assets used in the horse business, such as horses and other equipment. It is restricted to new assets, which meant that the first use of the horse or other property had to begin with the taxpayer."
According to the AHC, the bill would restore and make permanent 50% bonus depreciation for qualifying new property purchased and placed in service, retroactively from Jan. 1, 2014, including assets used in the horse business.
The bill, which has the support of the AHC, will now have to be approved by the Senate.