U.S. Congressman Andy Barr has announced significant achievements for the thoroughbred horse racing industry as part of the One Big Beautiful Bill Act (OBBBA). As Co-Chair of the Congressional Horse Caucus, Barr played a key role in advocating for these provisions on Capitol Hill. The bill was signed into law by President Donald Trump.
Barr emphasized the importance of making bonus depreciation permanent and protecting small-business loss carryovers, stating that “OBBBA delivers targeted but a critical boost for our signature horse industry.” He highlighted Kentucky’s deep connection to thoroughbred racing and expressed confidence that the bill would ensure its prosperity.
Tom Rooney, President and CEO of the National Thoroughbred Racing Association, acknowledged Barr’s efforts, noting that “it can’t be overstated how important permanent 100% bonus depreciation is to the sport.” Rooney also pointed out that removing changes to section 461(l) was crucial to maintaining gains from bonus depreciation.
Shannon Arvin, Keeneland President & CEO, described the legislation as a “significant win” for the industry. She mentioned that these measures provide stability for owners and breeders and support reinvestment in bloodstock and infrastructure.
Drew Fleming, President and CEO of Breeders’ Cup Limited, expressed gratitude towards Barr’s leadership. He noted that Barr’s support would help preserve heritage and promote economic growth by encouraging investment in Thoroughbred farms and racing operations.
The OBBBA includes several key victories for the horse industry:
– Permanent 100% Bonus Depreciation: This provision allows full expensing for eligible business investments such as horses, breeding stock, vehicles, and farm equipment.
– Restored Net Operating Loss Carryover under Section 461(l): This change enables horse owners and small farm operators to carry forward excess business losses as net operating losses.
– Stable Tax Environment: The permanence of these provisions offers predictability for equine enterprises requiring multi-year planning and capital-intensive investments.
