II 

109TH CONGRESS 

1ST SESSION S. 1528 

To amend the Internal Revenue Code of 1986 to provide for the tax treatment 

of horses, and for other purposes. 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Equine Equity Act 

5 of 2005’’. 

6 SEC. 2. 3-YEAR DEPRECIATION FOR ALL RACE HORSES. 

7 (a) IN GENERAL.—Clause (i) of section 168(e)(3)(A) 

8 of the Internal Revenue Code of 1986 (defining 3-year 

9 property) is amended to read as follows: 

10 ‘‘(i) any race horse,’’. 
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•S 1528 IS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to property placed in service on 

3 or after the date of the enactment of this Act. 

4 SEC. 3. REDUCTION OF HOLDING PERIOD TO 12 MONTHS 

5 FOR PURPOSES OF DETERMINING WHETHER 

6 HORSES ARE SECTION 1231 ASSETS. 

7 (a) IN GENERAL.—Subparagraph (A) of section 

8 1231(b)(3) of the Internal Revenue Code of 1986 (relating 

9 to definition of property used in the trade or business) 

10 is amended by striking ‘‘and horses’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2005. 

14 SEC. 4. LIVESTOCK ASSISTANCE. 

15 (a) IN GENERAL.—In carrying out a livestock assist16 ance, compensation, or feed program, the Secretary of Ag17 riculture shall include horses within the definition of ‘‘live18 stock’’ covered by the program. 

19 (b) CONFORMING AMENDMENTS.— 

20 (1) Section 602(2) of the Agricultural Act of 

21 1949 (7 U.S.C. 1471(2)) is amended— 

22 (A) by inserting ‘‘horses,’’ after ‘‘bison,’’; 

23 and 

24 (B) by striking ‘‘equine animals used for 

25 food or in the production of food,’’. 
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•S 1528 IS

1 (2) Section 806 of the Agriculture, Rural De2 velopment, Food and Drug Administration, and Re3 lated Agencies Appropriations Act, 2001 (Public 

4 Law 106–387; 114 Stat. 1549A–51) is amended by 

5 inserting ‘‘(including losses to elk, reindeer, bison, 

6 and horses)’’ after ‘‘livestock losses’’. 

7 (3) Section 10104(a) of the Farm Security and 

8 Rural Investment Act of 2002 (7 U.S.C. 1472(a)) is 

9 amended by striking ‘‘and bison’’ and inserting 

10 ‘‘bison, and horses’’. 

11 (4) Section 203(d)(2) of the Agricultural As12 sistance Act of 2003 (Public Law 108–7; 117 Stat. 

13 541) is amended by striking ‘‘and bison’’ and insert14 ing ‘‘bison, and horses’’. 

15 (c) APPLICABILITY.— 

16 (1) IN GENERAL.—This section and the amend17 ments made by this section apply to losses resulting 

18 from a disaster that occurs on or after the date of 

19 enactment of this Act. 

20 (2) PRIOR LOSSES.—This section and the 

21 amendments made by this section do not apply to 

22 losses resulting from a disaster that occurred before 

23 the date of enactment of this Act. 

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