The new farm bill also has something for other deserving federal aid recipients.
McConnell, along with a handful of other senators, has successfully spared a measure that would allow accelerated depreciation for race horses. The measure would essentially allow race horse owners _ who pay millions for Triple Crown contenders, write down their investment over three years. The provision appears to have survived the conference committee negotiations on the $300 billion farm bill.At least, grain farmers can tell folks there was something for the pork industry in the legislation.
The Joint Committee on Taxation has yet to release an official estimate for the horse race provision, which is part of a larger $1.4 billion tax package.
Defenders of the measure say the tax break simply allows race horse owners to depreciate their thoroughbred assets on the same schedule that farmers depreciate other equipment on their tax returns. Under current law, race horses are depreciated over seven years; the new provision would allow full depreciation over three years. Critics, like House Agriculture Chairman Colin Peterson (D-Minn.), have said they're worried about the provision helping wealthy Saudi princes who buy Triple Crown horses. [More]