[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1251 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1251

   To amend the Internal Revenue Code of 1986 to provide for the tax 
              treatment of horses, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                             April 30, 2007

 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 2007''.

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 (relating to 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 livestock) is 
amended by striking ``and horses''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.
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