The United States Senate on Friday passed its version of the Farm Bill, which includes favorable tax changes for horse owners under the Equine Equity Act, by a vote of 79-14.

The Equine Equity Act would reduce the capital gains holding period for horses from two years to one and accelerate and make uniform the depreciation for racehorses over a three-year period.

The House of Representatives passed its own version of the Farm Bill in July. The House and Senate are expected to meet early next year to resolve differences between the two bills and prepare a final version. The final version would then be voted on by both the House and Senate and, if passed, the bill would then be sent to President George W. Bush for his signature [and enactment into law] or veto.

“We appreciate the Senate’s quick and decisive action on this important piece of legislation that modernizes the tax code with respect to equine industry investments,” said National Thoroughbred Racing Association President Alex Waldrop.