NTRA PRESS RELEASE (Edited)

WASHINGTON, DC.—The One Big Beautiful Act, passed by Congress and expected to be signed into law by President Trump, makes permanent 100% bonus depreciation, an important incentive for Thoroughbred breeders and owners, according to the National Thoroughbred Racing Association.

Bonus depreciation of 100% was part of the Tax Cuts and Jobs Act of 2017, signed into law during the first Trump administration. Originally, this provision included a phase-out schedule that made bonus depreciation 40% this year, 20% in 2026 and completely phased out by 2027. Now, it will stay at 100%, retroactive to Jan. 20, 2025. Also, thanks to the hard work of many people, including Representative Andy Barr (R-KY), problematic language changing the nature of the excess business loss carryover was removed in the final version of the bill. In addition to Barr, NTRA President and CEO Tom Rooney credited Senate Majority Leader John Thune (R-SD) and former Senate Majority Leader Mitch McConnell (R-KY) with ensuring the horse industry was represented.

“Thanks to the leadership of Senators Thune and McConnell, and particularly the efforts spearheaded by Congressman Barr, Thoroughbred racing will come away with significant gains from the One Big Beautiful Bill. It can’t be overstated how important permanent 100% bonus depreciation is to the sport,” Rooney said. “Equally as important was getting the language changing section 461(l) removed. Those changes to the excess business loss carryover would have wiped out many gains that those in the horse industry would have seen with 100% bonus depreciation. I’m grateful for all of the hard work that the Congressman put into getting this done for Thoroughbred breeding and racing.” 

Rep. Barr led the way on getting the language removed, ensuring that the separate provision does not take away the benefits of 100% bonus depreciation.

“By making bonus depreciation permanent and protecting small-business loss carryovers, OBBBA delivers a targeted but critical boost for our signature horse industry,” Congressman Barr said. “The Thoroughbred horse racing industry is a special part of Kentucky and this bill ensures it will thrive for generations to come.”

While there are many victories for the horse racing industry in the OBBBA, there is still work to be done to offset some losses by horseplayers in their ability to deduct tax losses. The NTRA is committed to working on that fix moving forward.

Return to the July 3 issue of Wire to Wire