A bill designed to promote investment in the horse industry by removing provisions of federal law that favor other investments was introduced by U.S. Senator Mitch McConnell July 28. The Equine Equity Act of 2005 will reduce the capital gains holding period for horses, allow horse owners to depreciate all racehorses over the same period, and make horses eligible for federal disaster assistance."The horse industry is vital to Kentucky's economy and to the thousands of Kentuckians who participate in horse-related activities," said McConnell (R-Kentucky). "Horses are Kentucky's largest agricultural product. Our signature industry employs more than 50,000 Kentuckians and provides an annual economic impact of $3.5 billion to our Commonwealth."
"There is no good reason why horses and their owners should not be eligible for the same disaster assistance as other livestock," said McConnell. "My legislation will remove the unfair tax burden on horses that discourage investment in the horse industry."The bill is co-sponsored by Senators Jim Bunning (R-KY) and Blanche Lincoln (D-AR). "This legislation is among the National Thoroughbred Racing Association's highest priorities in Washington, D.C.," said NTRA Commissioner D.G. Van Clief Jr.