President Donald Trump signed the Bipartisan Budget Act Feb. 9, a bill that, among other measures, extends the uniform three-year racehorse depreciation retroactively for fiscal year 2017.
Three-year depreciation is an important tax provision supported by the National Thoroughbred Racing Association that expired in 2016, alongside certain other expired tax provisions. It is an investment incentive for racehorse owners that was in place for several years before it expired.
"We wish to thank Senate Majority Leader Mitch McConnell for his continued support for our industry," said NTRA president and CEO Alex Waldrop. "We've worked with the leader for over a decade on our industry's unique issues, and we appreciate his continued efforts."
Prior to the 2008 Farm Bill, which became effective Jan. 1, 2009, racehorses 24 months of age and younger, when purchased and placed in service, were depreciated on a seven-year schedule that did not accurately reflect the length of a typical racehorse's career. Only racehorses older than 24 months were depreciated using a three-year schedule.
The NTRA said Friday it will continue to advocate for tax policies that accurately reflect the unique industry of horse racing.