To amend the Internal Revenue Code of 1986 to allow a 3-year recovery period for all race horses.

Bill 119 HR 1113, also known as the Race Horse Cost Recovery Act, aims to amend the Internal Revenue Code of 1986 to allow a 3-year recovery period for all race horses. Currently, race horses are classified as 3-year property, meaning they must be depreciated over a 7-year period. This bill seeks to shorten the recovery period to 3 years, which would allow owners of race horses to deduct a larger portion of the horse's cost in the earlier years of ownership.

The purpose of this bill is to provide tax relief to owners of race horses, who often face significant expenses in purchasing and maintaining these animals. By allowing a shorter recovery period, owners would be able to recoup their costs more quickly and potentially reinvest in their businesses. Proponents of the bill argue that this change would help support the horse racing industry and encourage investment in race horses.

Opponents of the bill may argue that it provides preferential treatment to a specific industry and could potentially lead to abuse of the tax code. However, supporters maintain that the bill is necessary to support an important sector of the economy and ensure the continued success of the horse racing industry. Overall, Bill 119 HR 1113 seeks to provide tax relief to owners of race horses by allowing a 3-year recovery period for all race horses. The bill aims to support the horse racing industry and encourage investment in race horses.