From NTRA
WASHINGTON, D.C. (May 22, 2014) — Progress on the EXPIRE Act (S. 2260), legislation that would extend expired or expiring tax provisions through 2015, has been delayed until at least next month, according to Senate Finance Committee Chairman Ron Wyden (D-OR). Senator Wyden said earlier this week that he hopes to work with Committee ranking member Sen. Orrin Hatch (R-UT) over the Memorial Day recess to resolve an amendments standoff that has halted progress of the $85 billion bill.
Several of the provisions in the EXPIRE Act will directly impact horse owners and breeders. Most notable of these is a provision to extend the three-year recovery period for younger racehorses that expired at the end of 2013. This faster depreciation schedule replaced a seven-year recovery period that does not accurately reflect current-day investment behavior in racehorses. Unless the Act becomes law, the seven-year schedule will be in place for 2014.
Additional provisions in the EXPIRE Act that will positively impact investment in qualified property for horse racing and other businesses include an increase in the expense allowance to $500,000 with a $2 million investment threshold and renewal of 50 percent bonus depreciation.
The NTRA’s federal legislative team has made extension of the three-year recovery provision a priority for 2014.