Racehorse Tax Parity Act

# Racehorse Tax Parity Act Summary **What the Bill Would Do:** The Racehorse Tax Parity Act (HR 1112) would change how the federal government treats racehorses for tax purposes. Specifically, it would allow owners and breeders of racehorses to depreciate these animals over a shorter time period for tax deductions, similar to how other business assets like equipment are depreciated. Currently, racehorses are treated differently under tax law, which the bill's supporters argue puts the racing industry at a disadvantage compared to other agricultural and business sectors. **Who It Affects:** This bill primarily affects owners, breeders, and trainers in the horse racing industry.

It could also impact state racing commissions and the broader thoroughbred racing economy. The bill would reduce federal tax revenue, meaning it could have broader fiscal implications. **Current Status:** As of now, HR 1112 is in committee, meaning it has been introduced but has not yet been voted on by the full House. It was sponsored by Representative Andy Barr, a Republican from Kentucky—a state with a significant racing industry, including the famous Kentucky Derby.