The National Thoroughbred Racing Association (NTRA) proudly endorses three key pieces of legislation aimed at bolstering investment, financial certainty, and long-term growth in the equine industry. These measures the Accelerate Long-term Investment Growth Now (ALIGN) Act, the Racehorse Cost Recovery Act, and the Racehorse Tax Parity Act—represent critical advancements for the Thoroughbred breeding and racing sector and the broader equine economy.
The ALIGN Act, introduced in the House of Representatives by Congressman Jodey Arrington (R-TX), permanently sets the applicable percentage for bonus depreciation at 100%. This is a vital provision for the Thoroughbred industry, as it incentivizes investment, boosts demand at sales, and provides financial certainty for breeders, owners, and buyers. By ensuring long-term depreciation benefits, this legislation will promote reinvestment across the industry while strengthening jobs in farming, training, veterinary care, and other equine-related businesses. The NTRA strongly supports the ALIGN Act as a fundamental measure to maintain the economic vitality of Thoroughbred racing.
Reintroduced by Congressmen Andy Barr (R-KY) and Morgan McGarvey (D-KY) the Racehorse Cost Recovery Act seeks to make the three-year depreciation schedule permanent for yearlings. Previously, Congress had renewed this tax provision annually, but it has remained expired since 2021. Establishing a permanent three-year depreciation schedule will eliminate uncertainty for owners and investors, fostering sustained growth in the Thoroughbred sector.
Also introduced by Congressmen Barr and McGarvey, the Racehorse Tax Parity Act addresses inequities in the tax code by reducing the holding period for equine assets to qualify as long-term capital gains. This change would align the tax treatment of racehorses with other similar assets, ensuring that investors in the equine industry receive fair and consistent tax benefits.
The NTRA will remain actively engaged with Congress to advocate for these legislative measures and monitor their progress. By securing tax incentives and financial stability for the Thoroughbred breeding and racing sector, these bills will ensure that the industry continues to thrive as a vital contributor to the U.S. economy.
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