II
109th CONGRESS
1st Session
S. 1528
IN THE SENATE OF THE UNITED STATES
July 28, 2005
Mr. McConnell (for himself, Mrs. Lincoln, and Mr. Bunning) introduced the following bill; which was read twice and referred to the Committee on Finance
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
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:
any race horse,
.
Effective date
The amendment made by this section shall apply to property placed in service on or after the date of the enactment of this Act.
Reduction of holding period to 12 months for purposes of determining whether horses are Section 1231 assets
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
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2005.
Livestock assistance
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.
Conforming amendments
Section 602(2) of the Agricultural Act of 1949 (7 U.S.C. 1471(2)) is amended—
by inserting horses,
after
bison,
; and
by striking equine animals used for
food or in the production of food,
.
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
.
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
.
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
.
Applicability
In general
This section and the amendments made by this section apply to losses resulting from a disaster that occurs on or after the date of enactment of this Act.
Prior losses
This section and the amendments made by this section do not apply to losses resulting from a disaster that occurred before the date of enactment of this Act.