[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1528 Introduced in Senate (IS)]








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.

    Be it enacted by the Senate and House of Representatives 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 the date of the enactment of 
this Act.

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 assistance, 
compensation, or feed program, the Secretary of Agriculture shall 
include horses within the definition of ``livestock'' 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 Development, Food 
        and Drug Administration, and Related 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 Assistance Act of 
        2003 (Public Law 108-7; 117 Stat. 541) is amended by striking 
        ``and bison'' and inserting ``bison, and horses''.
    (c) Applicability.--
            (1) In general.--This section and the amendments made by 
        this section apply to losses resulting from a disaster that 
        occurs on or after the date of enactment of this Act.
            (2) Prior losses.--This section and the amendments made by 
        this section do not apply to losses resulting from a disaster 
        that occurred before the date of enactment of this Act.
                                 <all>