II 110th CONGRESS 1st Session S. 1251 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.

1.

Short title

This Act may be cited as the Equine Equity Act of 2007.

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.

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.