H.R. 4151 – Equine Equity Act of 2005

109th CONGRESS

1st Session

H. R. 4151

IN THE HOUSE OF REPRESENTATIVES

October 26, 2005

Mr. Lewis of Kentucky (for himself, Mr. Rogers of Kentucky, Mr. Chandler, Mr. Whitfield, and Mr. Davis of Kentucky) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Internal Revenue Code of 1986 to provide for the tax treatment of horses, and for other purposes.

Short title

This Act may be cited as the Equine Equity Act of 2005.

3-year depreciation for all race horses

(a)

In general

Clause (i) of section 168(e)(3)(A) of the Internal Revenue Code of 1986 (defining 3-year property) is amended to read as follows:

(i)

any race horse,

(b)

Effective date

The amendment made by this section shall apply to property placed in service on or after July 28, 2005.

Reduction of holding period to 12 months for purposes of determining whether horses are section 1231 assets

(a)

In general

Subparagraph (A) of section 1231(b)(3) of the Internal Revenue Code of 1986 (relating to definition of property used in the trade or business) is amended by striking and horses.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2005.

Livestock assistance

(a)

In general

In carrying out a livestock assistance, compensation, or feed program, the Secretary of Agriculture shall include horses within the definition of livestock covered by the program.

(b)

Conforming amendments

(1)

Section 602(2) of the Agricultural Act of 1949 (7 U.S.C. 1471(2)) is amended—

(A)

by inserting horses, after bison,; and

(B)

by striking equine animals used for food or in the production of food,.

(2)

Section 806 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2001 (Public Law 106–387; 114 Stat. 1549A–51) is amended by inserting (including losses to elk, reindeer, bison, and horses) after livestock losses.

(3)

Section 10104(a) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1472(a)) is amended by striking and bison and inserting bison, and horses.

(4)

Section 203(d)(2) of the Agricultural Assistance Act of 2003 (Public Law 108–7; 117 Stat. 541) is amended by striking and bison and inserting bison, and horses.

(c)

Applicability

(1)

In general

This section and the amendments made by this section apply to losses resulting from a disaster that occurs on or after July 28, 2005.

(2)

Prior losses

This section and the amendments made by this section do not apply to losses resulting from a disaster that occurred before July 28, 2005.

Eligibility of horse breeders for emergency loans

Section 321(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961) is amended—

(1)

by striking and at the end of paragraph (1);

(2)

by striking the period in paragraph (2) and inserting ; and; and

(3)

by adding at the end the following:

(3)

Farmers, ranchers and farming, ranching includes the production of horses.

Equine Equity Act of 2005

Legislative Activity

Bill Text