COURTESY NTRA PRESS OFFICE
On May 3, 2024, U.S. Congressman Andy Barr (R-KY) introduced the Regulation Advancement for Capital Enhancement Act of 2024. This legislation aims to simplify the registration process mandated by the Securities and Exchange Commission, thereby enhancing the ability of innovative companies to securitize Thoroughbred racehorses. This will allow everyday Americans to invest in the industry.
“The Regulation Advancement for Capital Enhancement Act offers a common-sense solution to modernize racehorse ownership, recognizing the increasing diversity of owners, and opposes penalizing individuals and companies interested in fractional participation due to excessive federal regulations,” National Thoroughbred Racing Association President/CEO Tom Rooney said. “I am grateful to Congressman Andy Barr for his leadership on this crucial issue and for his continued support of our cherished sport.”
This legislation will facilitate fractional ownership models similar to MyRacehorse and others to expand investment which will undoubtedly contribute to the sport’s growth as more people are able to experience the thrill of owning a racehorse.
Just last week, 2,570 fractional owners from MyRacehorse celebrated their horse, Seize the Grey, winning the Grade 1 Preakness Stakes in Baltimore. Success stories like this are vital for the sport and this bill will help make them more common. The NTRA is actively working with Congress to build support for this legislation.
Tax Package on Life Support
Outside groups that support the bipartisan tax bill, including the NTRA, have seen it stalled in the Senate for nearly four months. However, the NTRA continues to urge Senate leaders to take up the Wyden-Smith plan, most recently pushing for a vote by the end of May. The NTRA has consistently called for action, emphasizing the bill’s full expensing provision that has a significant benefit for the horse racing industry and has been crucial in boosting the equine economy.
Chairman of the Senate Finance Committee, Senator Ron Wyden (D-OR), recently stated that he’s still discussing the timing of a vote with Majority Leader Chuck Schumer (D-NY). House Ways and Means Committee Chairman Jason Smith (R-MO) has predicted that the bill would pass the Senate if it ever reached the floor. Still, it’s hard to know what would compel Schumer to schedule a vote now after all these weeks of inaction, especially with other issues seeming more pressing and some signs that Senate Democrats themselves might not be fully united behind the tax bill.
