Congressmen Andy Barr (KY-06) and Morgan McGarvey (KY-03), reintroduced two bipartisan bills to strengthen Kentucky’s equine industry by incentivizing investment and ensuring tax fairness.
The Racehorse Cost Recovery Act would make permanent the three-year depreciation schedule for racehorses, regardless of their age when placed into service—eliminating the need for annual congressional reauthorization. The Racehorse Tax Parity Act would shorten the holding period for equine assets to qualify for long-term capital gains treatment and align them with similar investments, ensuring a level playing field.
“Kentucky’s equine industry is not just a cultural cornerstone but also a vital economic driver for our Commonwealth,” said Congressman Andy Barr, Co-Chair of the Congressional Horse Caucus. “By making the three-year depreciation schedule for racehorses permanent and reducing the holding period for equine assets to qualify for long-term capital gains treatment, we are providing much-needed certainty and fairness in the tax code. These reforms will encourage investment, support the livelihoods of countless Kentuckians, and ensure that our horse industry remains competitive on a national and global scale. I am grateful to lead this effort with my friend and fellow Kentuckian, Morgan McGarvey.”
“I’m proud to once again work with my colleague and friend, Congressman Barr, to strengthen our state’s signature equine industry,” said Congressman Morgan McGarvey. “This important, bipartisan legislation will grow our state’s economy and ensure Kentucky remains the horseracing and breeding capital of the United States.”
“We are grateful to Congressman Barr and Congressman McGarvey for their continued support of legislation that is critical to the future success of our industry,” said Shannon Arvin, President and CEO of Keeneland. “Policies that promote investment in racehorses are vital to sustaining a strong and dynamic Thoroughbred marketplace.
“The Jockey Club strongly commends Congressmen Andy Barr (R-KY) and Morgan McGarvey (D-KY) for introducing the Racehorse Cost Recovery Act of 2025 and the Racehorse Tax Parity Act of 2023,” said Jockey Club Preesident and COO James Gagliano. “These bills will put horse ownership on par with other investment assets where they should have been all along. These bills address two key deficiencies of the tax code that unfairly single out Horseracing, an industry that directly and indirectly contributes $36.6 billion to the GDP and provides 472,000 jobs nationwide. This reform is needed to ensure the tax code treats our industry like other businesses, and we applaud Congressman Barr and McGarvey for their efforts on behalf of this great industry.
Both bills have received strong support from industry leaders, including the National Thoroughbred Racing Association (NTRA), National Thoroughbred Association, Keeneland, and the Jockey Club.
Offices of Congressmen Barr and McGarvey