Three-Year Racehorse Depreciation Extension Passed by Both Houses of Congress

LEXINGTON, Ky. (December 19, 2019) – A key provision that extends three-year tax depreciation for all racehorses through 2020 passed the Senate by a vote of 71-23 earlier today. The racehorse provision was passed by the House of Representatives on Tuesday by a vote of 297-120 as part of a larger tax package.
“We appreciate the Senate’s work to include this important provision,” said NTRA President and Chief Executive Officer Alex Waldrop. “We especially applaud the efforts of Leader McConnell, who does so much to support Kentucky’s signature industry.”

 

Uniform three-year racehorse depreciation was among numerous tax provisions across many industries that either expired at the beginning of 2018 or this year, or were set to expire as of Jan. 1, 2020. The bill reinstates the 3-year schedule for all racehorses retroactive to 2018 and through 2020.
The provision allows taxpayers to depreciate, on a three-year schedule, racehorses 24 months of age and younger when purchased and placed into service, as opposed to a seven-year schedule.

 

Three-year racehorse depreciation was most recently available to the industry in 2017 but Congress did not renew it for 2018 as part of the Tax Cuts and Jobs Act (TCJA) passed in December 2017. The TCJA did include 100% bonus depreciation and a $1 million Sec. 179 expense allowance for qualified depreciable property, two important investment incentives that lessened the need for three-year depreciation in many cases. However, three-year depreciation continues to be a beneficial option for many racehorse owners, especially racing partnerships with multiple passive owners, as it better aligns deductions with corresponding income opportunities on an annual basis.

 

Maintaining the three-year recovery period for racehorse purchases has been a top legislative priority for the NTRA federal legislative team since the provision’s initial enactment as part of the 2008 Farm Bill.

 

About the NTRA
The NTRA, based in Lexington, Ky., is a broad-based coalition of more than 100 horse racing interests and thousands of individual stakeholders consisting of horseplayers, racetrack operators, owners, breeders, trainers and affiliated horse racing associations, charged with increasing the popularity, welfare and integrity of Thoroughbred racing through consensus-based leadership, legislative advocacy, safety and integrity initiatives, fan engagement and corporate partner development. The NTRA owns and manages the NTRA Safety and Integrity Alliance; NTRA.com; the Eclipse Awards; the National Horseplayers Championship; NTRA Advantage, a corporate partner sales and sponsorship program; and Horse PAC®, a federal political action committee. NTRA press releases appear on NTRA.com, Twitter (@ntra) and Facebook (facebook.com/1NTRA).
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Three-Year Racehorse Depreciation Extension Passed by House of Representatives

LEXINGTON, Ky. (December 17, 2019) A key provision that extends three-year tax depreciation for all racehorses through 2020 today passed the House of Representatives by a vote of 297-120. The racehorse provision is part of a larger tax package agreed to by Republican and Democratic leaders and now expected to be taken up by the Senate in the next several days.

Uniform three-year racehorse depreciation was among numerous tax provisions across many industries that either expired at the beginning of 2018 or this year, or were set to expire as of Jan. 1, 2020. The bill reinstates the 3-year schedule for all racehorses retroactive to 2018.

The provision allows taxpayers to depreciate, on a three-year schedule, racehorses 24 months of age and younger when purchased and placed into service, as opposed to a seven-year schedule.

“Reinstatement of three-year depreciation for all racehorses helps attract and retain investment in the horse racing industry,” said NTRA President and Chief Executive Officer Alex Waldrop. “We appreciate the House’s work to include this important provision.”

Three-year racehorse depreciation was most recently available to the industry in 2017 but Congress did not renew it for 2018 as part of the Tax Cuts and Jobs Act (TCJA) passed in December 2017. The TCJA did include 100% bonus depreciation and a $1 million Sec. 179 expense allowance for qualified depreciable property, two important investment incentives that lessened the need for three-year depreciation in many cases. However, three-year depreciation continues to be a beneficial option for many racehorse owners, especially racing partnerships with multiple passive owners, as it better aligns deductions with corresponding income opportunities on an annual basis.

Maintaining the three-year recovery period for racehorse purchases has been a top legislative priority for the NTRA federal legislative team since the provision’s initial enactment as part of the 2008 Farm Bill.

The Senate has until Friday, December 20, to pass this legislation.

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Texas Horse Racing To Get Purse Boost From New Law Diverting Sales Tax On Horse Products

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As much as $17.5 million per year could be used to support Thoroughbred and Quarter Horse purses in Texas as a result of legislation signed into law last weekend by Gov. Greg Abbott.

House Bill 2463 diverts sales taxes on horse feed, tack and other horse-related products and services from the state’s general fund to an escrow account established by the Texas Racing Commission and capped at $25 million annually. No more than 70% of the funds in the escrow account may go toward purses. If the escrow account reaches $25 million, that would be an additional $17.5 million in purse money annually, virtually doubling the current amount, based on an economic study conducted by TXP Inc. consultants.

 

Read Paulick Report Article Here

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Louisiana Legislature Passes Bill Allocating $5 Per Start To Fund Aftercare

The state legislature in Louisiana approved a measure this week which would allocate $5 per start to a fund for Thoroughbred aftercare. HB384 states monies raised from the funding stream would be managed by a representative of Louisiana horsemen for withdrawals and disbursement from the Horsemen’s Bookkeeper Account.

The bill, authored by Rep. Clay Schexnayder (R-District 81), was passed unanimously by both the Louisiana House of Representatives and Senate.

The language in HB384 does allow the automatic donation to be “withdrawn or opted out of by providing written notification to the representative of horsemen in the state.”

The bill was sent to the governor for executive approval on Wednesday.
Read more about HB384, including full bill language, here.

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Senate Bill 153: Update

The Horsemen’s Amendment to SB 153 by Senator Martiny was adopted unanimously.  Thank you for contacting the members of the House Administration of Criminal Justice committee and asking them to support Louisiana Horsemen.  A portion of the Sports Gaming conducted at our Race Tracks will now be dedicated to Purses.  Communicating your position to your Representatives is vital to our industry.   Through the hard work of our Members, Board, President, and Staff, Louisiana will continue to be one of the top Horse Racing destinations in North America.

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LTBA LEGISLATIVE ALERT! Senate Bill 153

Senate Bill 153 on Sports Gaming is scheduled to be heard in the House Committee for the Administration of Criminal Justice on Tuesday May 21, 2019 at 9AM.  This bill does not currently dedicate any portion of the revenue to purses or breeders awards.  Please contact members of the Administration of Criminal Justice Committee (listed below) and ask them to support the Horse Racing Industry by dedicating a Fair Share of the Sports Gaming Revenue at the Race Tracks to Purses and Breeders Awards.  Ask them to please support the Horsemen’s amendment.

Thank you,
Louisiana Thoroughbred Breeders Association

 

Louisiana House of Representative
Administration of Criminal Justice

  Office Address Office Phone email
Mack,
Sherman (Chairman)
PO Box 115
Albany, LA 70711
225-567-3677 macks@legis.la.gov
Pylant,
Steve (Vice Chair)
805 Jackson St Suite A
Winnsboro, LA 71295
318-435-7313 pylants@legis.la.gov
Bacala,
Tony
15482 Airline Hwy Suite A
Prairieville, LA 70769
225-677-8020 bacalat@legis.la.gov
Bagneris,
John
5555 Bullard Avenue
New Orleans, LA 70128
504-243-7783 bagnerisj@legis.la.gov
Carpenter,
Barbara
1975 Harding Blvd
Baton Rouge, LA 70807
225-771-5674 carpenterb@legis.la.gov
Crews,
Raymond
4921 Shed Rd. Ste. 200
Bossier City, LA 71111-5477
318-716-7532 crewsr@legis.la.gov
Duplessis,
Royce
643 Magazine Street Suite 302
New Orleans, LA 70130
504-568-2740 duplessisr@legis.la.gov
Dwight,
Stephen
PO Box 12703
Lake Charles, LA 70612-2703
337-491-2315 dwights@legis.la.gov
Gaines,
Randal
425 West Airline Hwy. Ste. K
Laplace, LA 70068-3818
985-652-1228 gainesr@legis.la.gov
Hodges,
Valarie
35055 LA Hwy 16 Suite 2A
Denham Springs, LA 70706
225-791-2199 hodgesv@legis.la.gov
Howard,
Frank
1601 Texas Highway
Many, La 71449
318-256-4135 howardf@legis.la.gov
James,
Edward “Ted”
445 North 12th St.
Baton Rouge, LA 70802
225-343-3633 james.ted@legis.la.gov
Marcelle,
Denise
1824 North Acadian Thruway W.
Baton Rouge, LA 70802
225-359-9362 marcelled@legis.la.gov
Marino,
Joseph
200 Derbigny St. Ste. 4300
Gretna, LA 70053
504-361-6013 marinoj@legis.la.gov
Moss,
Stuart
1918 Maplewood Drive
Sulphur, LA 70663
337-625-5170 mossstuart@legis.la.gov
Muscarello,
Nicholas
PO Box 1523
Hammond, LA 70404
985-974-0009 muscarellon@legis.la.gov
Norton,
Barbara
3245 Hollywood Avenue
Shreveport, LA 71108
318-632-5887 nortonb@legis.la.gov

 

For more information, please call 504-947-4676 or visit louisianabred.com.

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Two U.S. Senators To Introduce ‘Racehorse Doping Ban Act of 2019’

Ahead of Saturday’s Kentucky Derby, U.S. Senators Tom Udall (D-N.M.) and Ron Wyden (D-Ore.) announced that next week they will introduce the Racehorse Doping Ban Act of 2019, which would establish consistent medication rules across the industry and strict doping penalties for horse races already governed by federal law.

“It is past time that Congress stop rewarding the horse racing industry for its inhumane doping violations with sweetheart gambling privileges and millions in casino slots subsidies,” said Udall. “This weekend, shielded from the eyes of fans, horses competing in the Kentucky Derby will be injected with painkillers before being loaded into the starting gate. With racehorse death rates higher than in any other country, the U.S. industry has completely failed to self-regulate its doping and corruption abuses. Legislation to ban doping in horseracing is the meaningful action we need to end the abuse of these iconic animals. Headlines around the country make it clear the future of this sport is in serious doubt, and this may be the last chance for meaningful reform—it’s time for industry leaders to take the blinders off.”

“It’s clear industry leaders are more concerned with their profits than protecting these iconic creatures,” Wyden said. “It’s time for Congress to step in and end the cycle of abuse by banning the cruel practice of doping in horseracing once and for all.”

While horse racing showcases the beauty of an iconic animal, chronic abuse of performance-enhancing drugs is commonplace and undermines the safety and viability of the sport.  Drugged up with painkillers and performance-enhancing substances, racehorses can be pushed beyond their limits, leading to break downs with potentially fatal consequences for horses and jockeys.

Congress considered banning drugs in horse racing in the 1980s but left that decision up to individual states.  As a result, almost every horse is given race-day medication — banned in other countries — and no uniform medication rules or doping penalties exist across the states. A recent New York Times report stated that the U.S. has a racehorse fatality rate that is up to five times greater than in other countries with nearly 10 horses dying a week. The scale of the tragedy was made shockingly clear earlier this year when twenty-three racehorses died in a span of three months at the famous Santa Anita Track in California, prompting the owners to close the track temporarily and consider new reforms.

Under Udall and Wyden’s legislation, the U.S. Anti-Doping Agency (USADA) – which is the official anti-doping body for US Olympic sport – would develop rules for permitted and prohibited substances and create anti-doping education, research, testing and adjudication programs for horse racing.  The bill would also:

  • Put an end to race day medication;
  • Set a harmonized medication policy framework for all races with interstate “simulcast” wagering;
  • Require stiff penalties for cheating, including “one and done” and “three strikes, you’re out” lifetime bans for the worst cases; and
  • Ensure racehorse drug administrations meet veterinary ethics.

Alternative legislation has been introduced in the House of Representatives that would not specifically ban the most harmful doping practices but rather create an industry dominated panel to list approved racehorse drugs.

Udall has fought for years to reform the horse racing industry. He and Wyden sponsored similar legislation in 2013, and in 2015, following the failure of the U.S. industry to agree to meaningful reform legislation, Udall and former Representative Joe Pitts (R-Pa.) introduced legislation to eliminate the federal statute that allows most wagering on horse racing to encourage the sport to end doping and crack down on cheaters.

Some members of the horse racing community have voiced strong support for the Racehorse Doping Ban Act of 2019.

“We wholeheartedly support Senator Udall’s Racehorse Doping Ban Act of 2019. It is time for American to join the rest of the world.  Horse racing is a beautiful popular sport in Great Britain, France and Hong Kong. Any type of doping is absolutely prohibited. If our country wants to join the global racing community we must get on board with this no drug policy. More importantly: our country and our horses deserve fair treatment and a fair sport. We would like to honor and commend Senator Udall for working towards this venerable goal,” said George Strawbridge, Jr and Julia Jenkins, owners of Augustin Stable.

“Roy and I have supported the Pitts, Udall Bill since it’s conception. The Racehorse Doping Ban Act of 2019-based on the Senator Udall’s 2013 bill is a well stated, well thought out comprehensive bill. It will save Thoroughbred Horse racing from extinction. It comes at the right time to offer support to the industry in the right way. Giving it guidelines and all-important protection for our beloved racehorses,” said Gretchen Jackson and Roy Jackson, owners of Lael Stables.

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LTBA Legislative Update: Senate Bill 220 Rescinded

 

LTBA Contact:
Roger Heitzmann
(504) 947-4676
roger@louisianabred.com
April 30, 2019

LTBA Legislative Update:  Senate Bill 220
Senate Bill 220 Rescinded

Due to overwhelming opposition from horsemen from all sectors of the industry, Senate Bill 220 was rescinded by Sen. Eric LaFleur during the Louisiana Senate Judiciary B Committee Tuesday, April 30. The proposed legislation would have reduced race dates in Louisiana. Many thanks to all who contacted members of the Senate Judiciary B Committee. Your involvement has made all the difference! This has been a real work of cooperation between members of the LTBA, LQHBA, and LaHBPA, proving that when we join forces we all benefit.

For more information, please call 504-947-4676 or visit louisianabred.com.
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LTBA LEGISLATIVE ALERT! Senate Bill 220 IMMEDIATE ACTION NEEDED!

LTBA LEGISLATIVE ALERT!  Senate Bill 220
IMMEDIATE ACTION NEEDEDSenate Bill 220 has been introduced by Sen. Eric LaFleur, and is scheduled to be heard by the Senate Judiciary B Committee, TODAY, Tuesday, April 30.This bill will reduce race dates which could impact all four Louisiana racetracks.

Please contact your state senators right away, especially those on the Senate Judiciary B Committee.

Thank you, 
Louisiana Thorougbred Breeders Association 
 

 

Judiciary B
Senator Gary Smith (Chairman)
P. O. Box 189
Norco, LA 70079
(985) 764-9122
smithgl@legis.la.gov
Senator Ronnie Johns (Vice-Chairman)
1011 Lakeshore Drive
Suite 515
Lake Charles, LA 70602
(337) 491-2016
johnsr@legis.la.gov
Senator Norbèrt N. “Norby” Chabert
P.O. Box 2417
Houma, LA 70361
(985) 858-2927
chabertn@legis.la.gov
Senator Eric LaFleur
P. O. Box 617
Ville Platte, LA 70586
(337) 363-5019
(877) 396-4600
lafleure@legis.la.gov
Senator Jean-Paul J. Morrell
6001 Stars and Stripes Boulevard
Suite 221
New Orleans, LA 70126
(504) 284-4794
morrelljp@legis.la.gov
Senator Karen Carter Peterson
1409 Oretha Castle Haley Boulevard
Suite C
New Orleans, LA 70113
(504) 568-8346
petersonk@legis.la.gov
Senator Gregory Tarver
1024 Pierre Avenue
Shreveport, LA 71103
(318) 227-1499
tarverg@legis.la.gov
For more information, please call 504-947-4676 or visit louisianabred.com.
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LTBA LEGISLATIVE ALERT! House Bill 398

LTBA Contact:
Roger Heitzmann
(504) 947-4676
roger@louisianabred.com
 

April 15, 2019

LTBA LEGISLATIVE ALERT!  House Bill 398

House Bill 398 is assigned to be heard in the House Committee for the Administration of Criminal Justice.

This bill will repeal the Purse Transfer Law that we passed, with the support of the industry, last year.

Please contact members of the Administration of Criminal Justice Committee (listed below) and ask them to support the Horse Racing Industry by maintaining the ability to transfer Purse Funds. Ask them to please vote NO on House Bill 398.

Thank you,
Louisiana Thorougbred Breeders Association

Louisiana House of Representative
Administration of Criminal Justice

 Office Address Office Phone email
Mack, Sherman (Chairman) PO Box 115 Albany, LA 70711 225-567-3677 macks@legis.la.gov
Pylant, Steve (Vice Chair) 805 Jackson St Suite A Winnsboro, LA 71295 318-435-7313 pylants@legis.la.gov
Bacala, Tony 15482 Airline Hwy Suite A Prairieville, LA 70769 225-677-8020 bacalat@legis.la.gov
Bagneris, John 5555 Bullard Avenue New Orleans, LA 70128 504-243-7783 bagnerisj@legis.la.gov
Carpenter, Barbara 1975 Harding Blvd Baton Rouge, LA 70807 225-771-5674 carpenterb@legis.la.gov
Crews, Raymond 4921 Shed Rd. Ste. 200 Bossier City, LA 71111-5477 318-716-7532 crewsr@legis.la.gov
Duplessis, Royce 643 Magazine Street Suite 302 New Orleans, LA 70130 504-568-2740 duplessisr@legis.la.gov
Dwight, Stephen PO Box 12703 Lake Charles, LA 70612-2703 337-491-2315 dwights@legis.la.gov
Gaines, Randal 425 West Airline Hwy. Ste. K Laplace, LA 70068-3818 985-652-1228 gainesr@legis.la.gov
Hodges, Valarie 35055 LA Hwy 16 Suite 2A Denham Springs, LA 70706 225-791-2199 hodgesv@legis.la.gov
Howard, Frank 1601 Texas Highway Many, La 71449 318-256-4135 howardf@legis.la.gov
James, Edward “Ted” 445 North 12th St. Baton Rouge, LA 70802 225-343-3633 james.ted@legis.la.gov
Marcelle, Denise 1824 North Acadian Thruway W. Baton Rouge, LA 70802 225-359-9362 marcelled@legis.la.gov
Marino, Joseph 200 Derbigny St. Ste. 4300 Gretna, LA 70053 504-361-6013 marinoj@legis.la.gov
Moss, Stuart 1918 Maplewood Drive Sulphur, LA 70663 337-625-5170 mossstuart@legis.la.gov
Muscarello, Nicholas PO Box 1523 Hammond, LA 70404 985-974-0009 muscarellon@legis.la.gov
Norton, Barbara 3245 Hollywood Avenue Shreveport, LA 71108 318-632-5887 nortonb@legis.la.gov

For more information, please call 1-800-772-1195 or visit louisianabred.
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