WASHINGTON, D.C. (May 15, 2014) -- Progress on tax extender legislation continued this week when the U.S. Senate voted 96-3 to advance the EXPIRE Act (S. 2260). Last month the Senate Finance Committee considered and passed this legislation to extend expired or expiring tax provisions through 2015, including several that will directly impact the horse racing industry.
Of particular interest to horse owners and breeders is a provision in the EXPIRE Act to extend the three-year recovery period for younger racehorses that expired at the end of 2013. This accelerated depreciation schedule replaced an onerous seven-year recovery period which will return in 2014 unless the EXPIRE Act becomes law. The shorter recovery period more accurately reflects current-day investments in racehorses and helps encourage continued investment.
Other provisions in the EXPIRE Act that will positively impact horse racing and other businesses include an increase in the expense allowance and bonus depreciation. In the Act, the expense allowance is set at $500,000 with a $2 million threshold for qualified property and bonus depreciation is set at 50 percent for qualified new property.
The NTRA’s federal legislative team has made extension of the three-year recovery provision a priority for 2014.