The American Recovery and Reinvestment Act of 2009, signed into law on February 17 by President Barack Obama, includes several significant benefits for the horse industry, according to Jay Hickey, president of the American Horse Council.
“The new law contains two important tax incentives that would allow a much bigger write-off for horses and other depreciable property purchased and placed in service during 2009,” said Hickey. “These provisions expired at the end of 2008, but their reinstatement should provide an additional incentive for people to purchase horses for racing, showing and breeding as part of their business activities.”
The bill also includes several other changes that may benefit horse owners, including the allowance of a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks and recreational vehicles in 2009; a change in the net operating loss carry-back period to five years for small businesses; and a reduction for 2009 in the required estimated tax payments for some small businesses.
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