I 
109TH CONGRESS 
1ST SESSION H. R. 4151 
To amend the Internal Revenue Code of 1986 to provide for the tax treatment 
of horses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 26, 2005 
Mr. LEWIS of Kentucky (for himself, Mr. ROGERS of Kentucky, Mr. CHAN-
DLER, Mr. WHITFIELD, and Mr. DAVIS of Kentucky) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Agriculture, for a period to be sub-
sequently 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Equine Equity Act 
of 2005’’.
SEC. 2. 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. 
SEC. 3. 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. 
SEC. 4. LIVESTOCK ASSISTANCE. 
(a) IN GENERAL.—In carrying out a livestock assist-
ance, compensation, or feed program, the Secretary of Ag-
riculture shall include horses within the definition of ‘‘live-
stock’’ 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 De-
velopment, Food and Drug Administration, and Re-
lated 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 As-
sistance Act of 2003 (Public Law 108–7; 117 Stat. 
541) is amended by striking ‘‘and bison’’ and insert-
ing ‘‘bison, and horses’’. 
(c) APPLICABILITY.— 
(1) IN GENERAL.—This section and the amend-
ments 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. 
SEC. 5. ELIGIBILITY OF HORSE BREEDERS FOR EMER-
GENCY 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, ranch-
ing’ includes the production of horses.’’. 
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