A provision that retroactively extends three-year tax depreciation for all racehorses was passed by the United States Senate late Dec. 16 as part of bill HR 5771, the Tax Increase Prevention Act of 2014.

The bill, which extends retroactively through the end of 2014 numerous provisions which expired or were reduced at the end of 2013, passed the House of Representatives with overwhelming support on Dec. 3 and is expected to pass into law with President Obama’s approval.

Maintaining the three-year recovery period for racehorse purchases has been a top legislative priority for the National Thoroughbred Racing Association (NTRA) since the provision’s initial enactment as part of the 2009 Farm Bill.

"The renewal of three-year tax depreciation for racehorses indicates that lawmakers understand the contributions our industry makes to job creation and the country’s overall economic health," said Alex Waldrop, NTRA president and CEO. "We are especially grateful to Senate Minority Leader Mitch McConnell (R-Kentucky) and Rep. Andy Barr (R-Kentucky) for their leadership and support of this provision which is so important to horse owners and breeders