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AHC Meets With Department of Transportation

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The following is from the American Horse Council:

February 18, 2018

AHC Meets with Department of Transportation, Federal Motor Carrier Safety Administration

The American Horse Council met with Department of Transportation (DOT), Federal Motor Carrier Safety Administration’s (FMCSA) Deputy Administrator and leadership team this week in response to a letter sent to Secretary Chao on January 28th, 2018. AHC staff went to DOT headquarters to raise the industry’s concerns and solicit clarification on how the existing regulations should be interpreted, and how those interpretations are affecting the horse industry.

The AHC expressed the industry’s interest in an increased level of stakeholder outreach, the lack of uniform interpretations nationwide, the applicability of various exemptions already in place, and the appropriate avenues for future legislative and regulatory efforts. AHC shared specific situations where rodeo, racing, competition and recreational sectors have interacted with law enforcement concerning commercial regulations.

The DOT informed the AHC that a new website specifically tailored to the agricultural industry will be unveiled in the next week, with a dedicated contact for agricultural questions, and they will begin to develop a F.A.Q. to more clearly address the questions which they receive.

The DOT members present did clarify that trailer drivers not engaged in business are not subject to Commercial Motor Vehicle (CMV) regulations, specifically where additional licensing is concerned. Regardless of weight, it was the interpretation of those present that going to an event that may issue prizes does not necessarily constitute commercial activity. As long as participation in the competition itself is not a component of the business with which that driver or the vehicle are regularly engaged, and expenses for said trip are not deducted for tax purposes, a CDL is not required to operate the CMV in question. Those interpretations, as are all CMV regulations, are specific to federal regulations, and state regulations may be less forgiving.

The AHC is excited about the opportunity to develop this relationship with DOT-FMCSA. The equine community should look forward to utilizing these lines of communication in the future to assure industry wide compliance and protection of individuals driving both commercially and recreationally. The AHC encourages the industry to reach out to state law enforcement to determine how best to comply with the state regulations. As additional information on this subject becomes available, the AHC will share that with our members as quickly as possible.

Visit http://www.horsecouncil.org/eld-mandate-cdl-requirements/ for AHC materials on this subject. Please contact the AHC with questions or concerns.

Join our Member’s Only Group

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The following is from the American Horse Council:

Join our Member’s Only Facebook Group!

As a member of the AHC, we know want you to stay up to date and informed of the issues that could impact the industry you love.

That’s why we created our Member’s Only group on Facebook- a place where we can post information and updates and get our members immediate feedback.* In addition to the Washington Updates you receive, this is just one more way the AHC is working to keep our members informed and up-to date!

Click below to join the group today!

*Only current AHC members are eligible to join. All requests to join will be subject to verification by the AHC.

 

2019 Annual Meeting Location Survey

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The following is from the American Horse Council:

February 16, 2018

Help the AHC Pick the 2019 Annual Meeting Location

The AHC is in the process of looking at hotels for our 2019 Annual Meeting and National Issues Forum and we want our member’s opinion!

Please take a moment to complete the survey at the link below. We would appreciate your response no later than Wednesday, February 21st.

Thank you!

ELD and CDL Webinar Recording

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The following is from the American Horse Council:

February 14, 2018

ELD and CDL Webinar Recording

While registration filled up quickly for the AHC’s First Quarter 2018 webinar on the Electronic Logging Device (ELD) and Commercial Drivers License (CDL) requirements, the AHC recorded the webinar in order to share with our members.

This is a multifactorial issue, with requirements for a CDL varying from state to state. The AHC is planning on hosting a second webinar on this topic in the coming weeks, and will be meeting with the Department of Transportation this coming Friday to further address how to best communicate the complexities of the requirements to the equine industry.

The AHC recommends contacting your state Department of Transportation for specific questions on the CDL regulations for your state. To view a list of state by state contacts, please click here.

If you have any questions, please contact the AHC at info@horsecouncil.org.

Congress Strikes Budget Deal in Wake of Brief Funding Lapse

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The following is from the American Horse Council:

February 9, 2018

Congress Strikes Budget Deal in Wake of Brief Funding Lapse

Renews 3-Year Depreciation for Race Horses for FY2017

Following a procedural roadblock in the Senate that initiated a five-hour government shutdown early  Friday – the briefest lapse on record and second in three weeks – Congress passed the Bipartisan Budget Act of 2018, legislation that will fund government operations through  March 23 and remove budgetary obstacles to allow longer-term FY2018 appropriations talks to move forward.  Fortunately for the horse industry, lawmakers approved an important tax incentive to restore three-year depreciation of racehorses for FY2017, allowing race horse owners to take advantage of the incentive within their FY2017 tax submission.  This will allow racehorse owners to capture tax benefits that expired in FY2016.  As you recall, the new tax law includes 100% depreciation for racehorses.  The industry will continue to advocate for the 3-year depreciation provision for 2018 and beyond. 

In addition to enacting an important capital cost recovery tool for the horse industry, the budget agreement also removes spending caps until March 2019 and authorizes nearly $300 billion in additional federal spending for the next two years.   Lawmakers hope that addressing the funding caps, effectively ending the “sequester” for the next year, will pave the way for smoother and more long-term budget negotiations through the remainder of 2018. 

To view a summary of the Bipartisan Budget Act of 2018, please click here.

For more information related to the nation’s rapidly changing tax policies, please contact Bryan Brendle, AHC’s Director of Policy & Legislative Affairs at bbrendle@horsecouncil.org or 202-296-4031.

Planning Underway for AHC’s 2018 Issues Forum

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The following is from the American Horse Council:

February 5, 2018

Planning Underway for AHC’s 2018 Issues Forum

The American Horse Council (AHC) is pleased to announce that 2018 National Issues Forum will take place on Tuesday, June 12th at the Capital Hilton in Washington, DC. The theme will be “Let’s Capitalize On It!” and will focus on ways the equine industry can learn and grow from both equine and outside industry segments as well as expanding technology beneficial to both humans and equines.

“This year we wanted to bring in a combination of equine industry and outside industry speakers,” said AHC President Julie Broadway. “It’s always interesting to hear from outside segments about what they are doing to cultivate their own industries and how the equine industry itself can learn and grow from what they are doing. Additionally, we thought it would be fascinating to gain some insight into new technologies that are not only enhancing human lives, but equine ones as well.”

The Forum will kick of Tuesday with speaker Luis Benitez, Director of the Colorado Outdoor Recreation Industry Office, where he will give an overview of his roles and responsibilities, as well as explain how other states could adopt a similar model. Following Mr. Benitez will be a panel titled “Survey Says” and will examine various data trends within the equine industry over the past several years.  The morning will also include a youth engagement panel, “Building the pipeline of future horse enthusiasts,” and will feature representatives from the PGA “First Tee” program, Outdoor Industry Association’s “Outdoor Nation,” and the Center for Creative Leadership.

The afternoon session will start with Dan Ashe, President and CEO of the Association of Zoos & Aquariums (AZA). AZA is a nonprofit association dedicated to the advancement of zoos and aquariums in the areas of conservation, animal welfare, education, science and recreation. Fran Jurga who will examine emerging technologies in the equine industry in a segment “CES 2017- Equestrian Style.”  The afternoon will also include panels of Congressional representatives, and equine aftercare, followed by round table discussion on topics of interests.

New this year, vendors will be set up to provide live demonstrations of emerging technologies including health monitoring sensors for horses and virtual reality demonstrations.

The AHC’s Annual Meeting will take place Sunday, June 10th – Monday, June 11thwhere the various committees of the AHC will meet. The Annual Meeting and National Issues Forum are open to both AHC members and non-members- we encourage anyone involved in the equine industry to attend to learn about new developments and how they can become involved!

Please check the Event page on the AHC’s website at http://www.horsecouncil.org/events for more information as it becomes available. If you have any questions, please contact the AHC at info@horsecouncil.org.

AHC Encourages Horse Industry to Complete 2018 Ag Census

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The following is from the American Horse Council:

February 2, 2018

AHC Encourages Horse Industry to Complete 2018 Ag Census

The USDA is a little more than one week away from the 2017 Census of Agriculture response deadline of February 5. The American Horse Council (AHC) would like to remind farmers and ranchers of the importance of their input. A national press release was sent out this week and individuals can find it, as well as past census press releases, at www.agcensus.usda.gov/Newsroom/ . Also on the census website are video messages from U.S. Secretary of Agriculture Sonny Perdue, testimonials, the latest ads, and more at www.agcensus.usda.gov/Partners/.

The response rate for the census has been good across much of the United States. However, from the southeast across to Arizona, the return rate has been slightly lower compared to other parts of the country. States with lower return rates at this point are Arizona, New Mexico, Louisiana, Mississippi, Georgia, Florida, and South Carolina. It is important to note that these states have a considerable equine presence, and it is important to make the horse industry impact in these states known.

The AHC will release the National Economic Impact of the United States Equine Industry study later this month, and we are fortunate to be able to have our information come out the same year as the national agricultural census. The population figures the USDA collect, while not comprehensive, are also crucial for the equine industry and the efforts of the AHC here on Capitol Hill.

Please www.agcensus.usda.gov if you have any questions.

AHC Requests Clarification from DOT

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The following is from the American Horse Council:

January 31, 2018

AHC Requests Clarification from DOT

The upcoming Electronic Logging Device deadline has sparked an animated discussion within the horse industry. The AHC would like to note that these are federal regulations that are left to state officials to be enforced. This division of responsibilities, and potentially divergent interpretation, is the basis for the sense of confusion felt across the industry.

The Department of Transportation (DOT) and Federal Motor Carrier Safety Administration (FMCSA) have told the AHC that the regulatory changes within the department are several years behind schedule. As such, addressing the current state of compliance is critically important to the industry and the continuation of the equestrian sport and way of life.

In that light, the AHC is working collectively with the larger livestock industry to seek more concise and plainly presented expectations for the equine industry to follow. The following letter was sent to Secretary Elaine Chao with the Department of Transportation in the hopes that DOT will address these concerns. Depending on the response from Secretary Chao and DOT, AHC is prepared to pursue new regulatory and legislative options that ensure the continuity and protection of the equine industry. View the letter here.

Please contact the AHC if you have any further questions.

First Quarter Webinar to Discuss ELD Mandate

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The following is from the American Horse Council:

January 25, 2018

First Quarter Webinar to Discuss ELD Mandate

The American Horse Council (AHC) will host its First Quarter 2018 webinar on Monday, February 12th at 3:00 pm ET and will address the recent Electronic Logging Device (ELD) Mandate that has caused much confusion and a lot of questions throughout the equine industry.

In light of the recent phone calls and emails with questions about the ELD Mandate and how it is going to not only affect the industry, but individuals as well, the AHC felt it was appropriate for the first webinar for 2018 to address the ELD mandate, and would be a compliment to the brochures that have already been put together on this issue.

The webinar will address the details of what the ELD Mandate includes, and who is required to have an electronic logging device.  Also discussed will be the requirements for Commercial Driver’s License (CDL), as well as what the AHC is doing to mitigate the effects of the proposed changes on the equine industry.

Both AHC members and non-members are encouraged to attend the webinar. The webinar will also be recorded and posted on the AHC website for those that could not attend. Please register online here, and you will receive an email with login instructions two days before the webinar date.

Partisan Gridlock Initiates Federal Government Shut-Down

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The following is from the American Horse Council:

January 20, 2018

Partisan Gridlock Initiates Federal Government Shut-Down

With Congress gridlocked on an agreement to adopt a Continuing Resolution (CR) to fund the federal government into February, the following are some real world consequences that could impact AHC members.   In the unlikely event that the government faces an extended suspension of “non-critical” operations, AHC will inform you about other specific consequences arising from the funding impasse.

  • National Park Service  – With the temporary suspension of federal government operations, the Department of Interior may close the National Park Service (NPS).  During the last government shutdown in 2013, the NPS marked as closed, or gated, all roads accessing national parks.  The NPS also closed all visitor and information centers.  Similar measures during the current shutdown would hinder hikers and horseback riders from gaining access to nearly 60,000 miles of trails under NPS jurisdiction. AHC recommends that members research the status of specific parks prior to planning a visit.
  • National Forest Service, Possible Flexibility  – According to a 2017 “shut down” contingency plan from the Department of Agriculture (USDA), any activity already certified by a permit could move forward in the event of a shutdown, so long as NFS personnel aren’t necessary to guarantee the safety of the participants, per the terms of the permit. However, NFS has the discretion to apply these contingencies on a “case-by-case” basis.  AHC recommends that members research the status of specific NFS trail closures beforehand.
  • Animal Plant and Health Inspection Service (APHIS) – According to a USDA memorandum, the White House Office of Management and Budget (OMB) has identified at least some APHIS functions as exempt from a shutdown, based on their role in protecting public health.  This includes APHIS’ Safety and Security Unit (SSU), which oversees health, safety, and security issues for employees of the National Centers for Animal Health (NCAH).
  • Critical Services – As a general rule, federal employees involved in “critical services” will not be subject to a furlough.  This group includes air traffic controllers, military personnel, and hazardous waste handlers, among others.  Other exempted services include USDA’s inspection and quarantine of animals prior to import or export (see above).
  • U.S. Mail – Finally, U.S. postal workers are not exempt from a federal funding furlough and will continue to deliver the mail.

Federal officials don’t anticipate an extended shut down of government operations.  For details related to the budget impasse and its near-term consequences, please contact Bryan Brendle, Director of Legislative Affairs, at  bbrendle@horsecouncil.org.

 

 

AHC Tax Bulletin-January 2018

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The following is from the American Horse Council:

AHC’s Tax Bulletin is Sponsored by

The American Horse Council keeps you up to date with important tax court cases and regulations with its bi-monthly Tax Bulletin. The Tax Bulletin is a member benefit, and thus is not intended for reproduction. For more information on federal legislation, equine health and regulatory issues, taxes, animal welfare, racing, recreation, and showing please visit our website at www.horsecouncil.org . 

Horse Industry Faces New Tax Landscape in 2018

Following President Trump’s signing of the new tax law on December 22, federal policy makers began immediately to discuss the likelihood of moving legislation in 2018 to address technical changes and clarifications to the 1100 page law.  While AHC takes a deeper dive into the tax law to address in more detail those provisions having a direct impact on the horse industry, please click to lin below to login and view the highlights that will impact your tax filing for Fiscal Year 2018.

Login to read the January Tax Bulletin

Tax Court Rules Owner Did Not Operate Horse Activity as a Business for Profit

By Thomas A. Davis, Esq., Davis & Harman, LLP

Since childhood, the taxpayer has been an amateur horsewoman. In 2005, she started Big Dog Farms (BDF) for the purpose of breeding, selling, and showing horses. Operations at BDF ceased in 2011.

Login to read the January Tax Bulletin

Horse Owners Ability to Utilize a Section 179 Deduction Against Income from Multiple Active Trades or Businesses

By:  Joel B. Turner, Esq. and Nelson D. Rhodes IV, Frost Brown Todd, Lexington, KY

While the Internal Revenue Code (“the Code”) allows taxpayers to deduct from taxable income all ordinary and necessary expenses incurred in carrying out an active trade or business,  generally, when purchasing tangible business assets with a useful life greater than a taxable year, the asset must be capitalized rather than deducted from business income for the year the property is placed in service. Under the Code, taxpayers are generally allowed to take an annual depreciation deduction for the wear, tear, and deterioration of their capitalized tangible property used in an active trade or business over an applicable recovery period.  For race horses, the current applicable recovery period is 3-years from the time the horse is placed in service (i.e., begins training). For broodmares and stallions, the current applicable recovery period is 7-years.

Login to read the January Tax Bulletin

The AHC Tax Bulletin is a digest of current tax developments affecting the horse industry. The AHC Tax Bulletin is for informational purposes only and not intended to take the place of professional tax counsel.

 

 

Landmark Tax Bill Crosses the Finish Line

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The following is from the American Horse Council:

Landmark Tax Bill Crosses the Finish Line

The Senate hustled early Wednesday morning, December 20 to pass the Tax Cuts and Jobs Act of 2017 by a vote of 51-48.  Although the House passed the bill Tuesday afternoon, congressional budget rules required the Senate to return the bill to the House for a revote on Wednesday to address technical changes.  While details related to the 1100-page conference report on the final legislation continue to emerge, please see the below highlights that will have the most direct impact on the horse industry:

Business Provisions

  • Corporate Taxes :  The new tax law reduces the corporate income tax rate from 35% to 21% and takes effect January 1.  AHC members filing as “C corporations,” which are generally identified by the suffix, “Inc.,” will see an immediate reduction in their official, or statutory tax rate.  AHC members filing as “C corporations” would include racetracks, makers of pharmaceuticals and agricultural equipment, and large breeding operations governed by officers and a board of directors, among others.  While many policy experts believe that the new tax code will be easier to navigate from a business perspective, corporate taxpayers’ effective liability will vary to the extent they are able to utilize the new code’s remaining deductions, some of which are outlined below.
  • Small Business, “Pass-Through” Deduction :  The Tax Cut and Jobs Act establishes a 20% deduction for the first $315,000 of joint income, or $157,500 for individual filers, from “pass-through” entities such as partnerships, sole proprietorships and S corporations.  This new provision could benefit small businesses that generally report incomes at or near the new threshold level.  While various types of “pass-throughs” constitute the fastest growing segment of AHC members, they also include the majority of U.S. farms.  According to Department of Agriculture data, 85% of domestic agriculture production comes from “pass through” entities.
  • Bonus Depreciation of Equipment: The House and Senate conference report includes 100% bonus depreciation – an increase from the current 50% rate – through  December 31, 2022, for property placed in service after September 27, 2017.  Beginning in 2023, bonus depreciation is reduced from 100%, to 80% in 2024, then falls by 20% increments each year through 2026.  Farm equipment used in a business operation, breeding stock and according to a preliminary reviews of the final language, race horses will benefit from the robust deduction.
  • Losses at the Racetracks :  The final law preserves the deduction of losses “sustained … on wagering transactions to the extent of the gains” realized “during the taxable year.”  However, the law clarifies that the “limitation on losses from wagering transactions applies not only to the actual costs of the wages, but to other expenses incurred by the individual in connection with the conduct of that individual’s gambling activity.”  For example, the law subjects the deduction for travel expenses to and from a racetrack to the cap established by the amount of the gains.  Like many of the deductions in the bill, the provision sunsets after 2025.
  • Alternative Minimum Tax (AMT) – The new law repeals the corporate AMT, ending the need to calculate tax liability twice for a single filing.

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Individual Provisions

  • Estate Tax:  The final law ultimately preserves the estate tax, but doubles the current exemptions of $5.49 million for individuals and $10.98 million for married couples.  Raising the statutory threshold will reduce the number of farms and family businesses subject to the tax.  It will also spare many family-run businesses from jumping over accounting hurdles to avoid the tax altogether.
  • State and Local Taxes (SALT) – The tax law includes a significantly downsized, itemized deduction for up to $10,000 of state and local property taxes.  This provision – which eliminates the unlimited, longstanding deduction for state, sales and local property taxes – may pose challenges for AHC members who file returns in high-tax states next year.
  • Mortgage Interest: The new law reduces the current $1 million cap on mortgage interest to $750,000, which the Internal Revenue Service (IRS) will apply to homes purchased after January 1, 2018.
  • Charitable Contributions:  In cases of individual cash contributions, the final law increases the percentage-limit deduction from the current rate of 50% of the donor’s adjusted gross income (AGI) to 60% of AGI.

Now the Real Work Begins

Tax policy experts predict that the fast moving tax law will result in a lengthy bill in 2018 to address technical corrections to clarify ambiguous provisions.  The Internal Revenue Service (IRS) will also begin a years-long process of promulgating regulations to implement the new law.  AHC recommends that members consult their accountants or other tax professionals to begin assessing the new tax landscape for 2018 and beyond. To view a 550-page copy of an explanation of the final conference report of the bill, please click here:  http://docs.house.gov/billsthisweek/20171218/Joint%20Explanatory%20Statement.pdf. For more information related to the new tax law and next steps, including technical corrections and implementation, please contact Bryan Brendle, Director of Policy and Legislative Affairs, at bbrendle@horsecouncil.org.

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Confused About the ELD Mandate? We Can Help.

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The following is from the American Horse Council:

Confused About the ELD Mandate? We Can Help.

On November 30th , the AHC sent out a Washington Update to our members on our efforts to address the Electronic Logging Device (ELD) Mandate. The AHC, in collaboration with the rest of the animal agriculture community, has requested that the Department of Transportation (DOT) grant a one-year enforcement delay followed by a waiver and limited exemptions from compliance with the December 18, 2017 implementation date for the Final Rule on Electronic Logging Devices (ELDs) and Hours of Service (HOS). Additionally, we requested that the DOT address the significant problems with the mandate that will occur if the compliance deadline is not extended. The welfare, safety, and health of the animals in transit, together with the safety of other drivers on the road, are top priorities for the equine industry and its enthusiasts.

The introduction of the ELD mandate has also brought to light concerns about Commercial Driver’s license (CDL) requirements from the entire equine community. Drivers have been required to have a CDL in order to drive certain commercial motor vehicles (CMV’s) since April 1, 1992. That being said, a truck and trailer can be considered a commercial vehicle without the requirement that you obtain a CDL. The AHC would like to note that the requirements for a CDL or CMV classification have been in effect for quite some time, and are not new developments along with the ELD mandate.

In an effort to help provide some clarity for both our members and the general equine industry, the AHC has put together two brochures: “Electronic Logging Device Mandate: How Will It Affect You?” and “Commercial Driver’s License: How do I Know if I Need One?” Both are available as a .pdf on the AHC’s website here:http://www.horsecouncil.org/eld-mandate-cdl-requirements/

We encourage our members to share this information, and please contact the AHC if you have any additional questions.

 

Senate Passes Tax Bill, Moves to “Conference” to Negotiate Final Package

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The following is from the American Horse Council:

Senate Passes Tax Bill, Moves to “Conference” to Negotiate Final Package

Senators scrambled Saturday, December 2, to muster the necessary 51 votes to pass its version of the Tax Cuts and Jobs Act of 2017, effectively laying down a marker to jump start negotiations with the House of Representatives on a final package.  While details related to the senate bill continue to emerge, please see the below highlights of key provisions that will impact the equine industry.  Many of these provisions diverge from the House-passed version and could be subject to changes during the House and Senate conference, which congressional leadership will organize this week:

Business Provisions

  • Corporate Tax Rate: The senate bill delays reduction of the corporate tax rate from 35% to 20% until 2019. By contrast, H.R. 1 provides an immediate corporate tax cut, effective in 2018.  Lawmakers will have to bridge this gap during the conference committee.
  • Small Business:  The senate vehicle establishes a 23% deduction for small business income of “pass-thru entities,” or small companies which opt to pay taxes under the individual rate.  Senators included this deduction to address concerns from lawmakers who claimed that previous versions of the bill did not create sufficient tax relief for small business.
  • Expensing: While the House bill and a previous version of the senate vehicle provided 100% bonus depreciation, the final senate bill appears to modify treatment of bonus depreciation to “phase down … the percentage from 100% by 20% per calendar year.”  AHC largely supports the House treatment of expensing, which according to Hill sources, includes a broad legislative definition to allow full expensing of horses.
  • Alternative Minimum Tax (AMT) – According to Hill sources, the senate vehicle preserves a 20% corporate, alternative minimum tax.  The House bill repeals the unpopular provision altogether, laying the groundwork for a major discussion point during negotiations for a final package.
  • Name and Logo Royalties:  The senate bill strikes a provision from a previous version of the bill that treated “name and logo royalties” as unrelated business taxable income.
  • Wagering Losses:  A previous version of the senate bill states that it amends the existing tax code provision that addresses treatment of gambling winnings, without specifying how.   The current senate vehicle does not appear to clarify this provision, which AHC will continue to monitor.

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Individual Provisions

  • Estate Tax: The Senate preserves it commitment to double the estate tax exemption, currently valued at $5.49 million for individuals, without full repeal.  By contrast, H.R. 1 eliminates the estate tax within six years of enactment.
  • State and Local Taxes (SALT) – Senators agreed to an itemized deduction for up to $10,000 in state and local property taxes, which resembles a compromise included in the House bill.
  • Mortgage Interest: The senate version will cap the deduction for mortgage interest indebtedness at $1 million.  H.R. 1, however, establishes a $500,000 cap on interest from new home purchases, a provision drawing criticism from the homebuilders.
  • Charitable Contributions:  In cases of individual cash contributions, the senate bill increases the percentage-limit deduction from the current rate of 50% to 60%.

Heading to the Finish Line

When congressional leaders appoint conferees, who will be recruited from the Senate Finance Committee and the House Ways and Means Committee, serious negotiations will begin, with a goal of presenting a final package to the president for his signature before Christmas.  To view a copy of a four-page table outlining highlights related to the various revenue impacts of the bill’s key provisions, please click here:  http://www.horsecouncil.org/wp-content/uploads/2017/12/Table-Revenue-Impacts.pdf​

For more information related to tax reform issues, please contact Bryan Brendle, Director of Legislative Affairs, at bbrendle@horsecouncil.org.

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2017 Census of Agriculture Gets Underway

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The following is from the American Horse Council:

2017 Census of Agriculture Gets Underway

USDA’s National Agricultural Statistics Service has started mailing the 2017 Census of Agriculture to America’s horse farms. Mailing in phases, all census questionnaires should be received by late December. If you do not receive a questionnaire this year, or have not received one ever, but wish to be included, you can sign up at https://www.agcounts.usda.gov/legacy0/cgi-bin/counts. Producers can respond online at www.agcensus.usda.gov or by mail. The American Horse Council encourages all qualified operations to participate and be counted. The deadline to respond is February 5, 2018.

Conducted once every five years, the census aims to get a complete and accurate picture of American agriculture. The resulting data are used by trade associations, researchers, policymakers, extension educators, agribusinesses, and many others. The data can play a vital role in community planning, farm assistance programs, technology development, farm advocacy, agribusiness setup, rural development, and more. This information may provide a critical snapshot of the equine industry that, when coupled with the AHC Economic Impact Study, will provided the evidence needed to affect important change here in Washington D.C.

For more information, visit www.agcensus.usda.gov or call (800) 727-9540.

American Horse Council Efforts to Address ELD Mandate

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The following is from the American Horse Council:

American Horse Council Efforts to Address ELD Mandate

Over the past months the American Horse Council (AHC) has reached out to the equine community to determine the potential impact of the upcoming Electronic Logging Device mandate. Based on the information received, the AHC, in collaboration with the rest of the animal agriculture community, has requested that the Department of Transportation (DOT) grant a one-year enforcement delay followed by a waiver and limited exemptions from compliance with the December 18, 2017 implementation date for the Final Rule on Electronic Logging Devices (ELDs) and Hours of Service (HOS). Additionally, we requested that the DOT address the significant problems with the mandate that will occur if the compliance deadline is not extended. The welfare, safety, and health of the animals in transit, together with the safety of other drivers on the road, are top priorities for the equine industry and its enthusiasts.

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The livestock sector has consistently been one of the safest of the commercial hauling sectors. The Large Truck Crash Causation Study, conducted by the Federal Motor Carrier Safety Administration (FMCSA) and the National Highway Traffic Safety Institute, showed that of 1,123 accidents involving trucks hauling cargo, only five involved the transportation of livestock. Similarly, the report titled Trucks Involved in Fatal Accidents Fact-book 2005 , conducted by the Transportation Research Institute, shows that livestock transporters accounted for just 0.7 percent of fatal accidents. The ELD mandate itself, which is the subject of this petition, does nothing to improve that record of safety over paper logs.

While this figure is not irrelevant, and any safety improvements should be considered, the trajectory of this rule’s implementation has left much to be desired.  Despite its being issued nearly two years ago, awareness of this rule among livestock haulers and the equine industry is nearly non-existent. For instance, FMCSA’s recent change to include livestock in its interpretation of the 150-air mile exemption for agricultural commodities, a change that the industry strongly supports and appreciates, has raised many additional questions from livestock haulers who are unsure about the mechanics of the new exemption and even if it means they are exempt from the ELD mandate altogether. More time is needed to reach out to the horse industry, and ensure that industry outreach can address ELD compliance and ELD impact.

Many horse operations and competitions are in rural areas, routinely requiring long, and repeated, trips. These animals, when loaded onto trailers, are vulnerable to changes in temperature, humidity, and precipitation. Horse haulers are accustomed to managing these changing conditions through planning, log books and notations in those books. These planning techniques have adapted and evolved over decades as technology has improved. Unfortunately, the quick transition to ELDs does not allow for the natural trial and error process to adequately meet the needs of the horse industry.

The equine industry and the millions of horse fans who attend equine events rely on safe and effective methods of transportation from every corner of the United States. Domestic transit of our competition and breeding animals is critical to the business continuity of our industry and largely relies on the use of large commercial haulers. These individuals have expressed their concern with the implications of this rule in regards to the negative impacts to standards in welfare, biosecurity and cost.

We are disappointed that the FMCSA did not feel the need to reach out to the larger livestock industry stakeholders prior to finalizing this rule, but specifically for not reaching out to the equine industry considering the constant and repeated travel inherent to the competitive, coast to coast nature of our industry. While horse haulers are able to provide more accommodating shipping conditions compared to other livestock sectors, the issues we have with immediate implementation of the rule mirror those of the larger animal agriculture community.

The American Horse Council will continue to petition for an enforcement delay, to be followed by a waiver and/or limited exemptions from compliance with the final rule on ELDs, and specifically the expected Hours of Service (HOS). Additionally we will continue to take advantage of any opportunity to collaborate with FMCSA and the DOT during this delay to better meet the needs of the animal agriculture community on future regulatory efforts.

Please contact Cliff Williamson at the American Horse Council with questions or comments at 202-296-4031 or at cwilliamson@horsecouncil.org.

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Contact Congress TODAY

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The following is from the American Horse Council:

As Congress continues to negotiate a final spending package for FY2018, the horse industry and its allies have an opportunity to assure that lawmakers include H-2B guest worker visa relief in the final bill.   Federal lawmakers must address this issue prior to the expiration of the FY2017 appropriations measure, which occurs on December 8. This creates a three week window to contact your elected officials in Washington and tell them you need common-sense, guest worker visa flexibility. 

Please contact your federal lawmakers today! By clicking on the TAKE ACTION button below, you can urge them to support any provision that will provide H-2B visa cap relief within the context of FY2018 appropriations bills.

Senate Unveils Tax Reform Details

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The following is from the American Horse Council:

Senate Unveils Tax Reform Details, Doubles Estate Tax Exemption without Full Repeal

On the heels of the House of Representatives’ release of the Tax Cuts and Jobs Act (H.R. 1) last week, the Senate Finance Committee began to roll out details related to its tax reform bill on Thursday afternoon, not releasing text and an official revenue “score” until Thursday night.  There are some major differences between the two bills that both chambers must reconcile prior to presenting legislation to the president’s desk for his signature.   Notably for the equine and broader agriculture sectors, the senate plan would double the exemption for the estate tax without eliminating it altogether, as provided in H.R. 1. The Senate Finance Committee will begin to mark-up the legislation on Monday, November 13.    Please see the below highlights, outlining some key provisions that will impact the equine industry:

Business Provisions

  • Corporate Tax Rate: The senate bill delays reduction of the corporate tax rate from 35 percent to 20 percent until 2019. By contrast, H.R. 1 provides an immediate corporate tax cut, effective in 2018.
  • Expensing: The senate bill provides “100% bonus depreciation within five years,” which is similar to a provision in H.R. 1.
  • Business Interest: The plan states that small businesses will be able to deduct interest on loans intended to finance the growth of operations and inventory.
  • Alternative Minimum Tax (AMT) – Like H.R. 1, the senate bill eliminates the unpopular AMT, which doubles the amount of time taxpayers must spend to calculate their business or individual tax liability within any given year.

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Individual Provisions

  • Estate Tax: The senate bill doubles the amount of the estate tax exemption, currently valued at $5.39 million for individuals, but falls short of an outright repeal.  By contrast, H.R. 1 eliminates the estate tax within six years of enactment.  AHC partners are already reaching out to senators to offer a repeal amendment during the mark up scheduled to begin early next week.
  • State and Local Taxes (SALT) – The senate bill includes a full repeal of the SALT deduction for individuals.  The House bill, however, includes a compromise provision allowing limited deductions for state and local property taxes.
  • Mortgage Interest: Senators state that the provision will cap the deduction for mortgage interest indebtedness at $1 million.  H.R. 1, however, establishes a $500,000 cap on interest from new home purchases, a provision drawing criticism from the homebuilders.
  • Charitable Contributions:  In cases of individual cash contributions, the senate bill increases the percentage-limit deduction from the current rate of 50% to 60%.

Next Steps

Because of the major differences between the House and Senate tax bills, the two chambers will likely convene a conference committee to negotiate a final package to send to the president.  The House Ways and Means Committee concluded its four day mark-up of H.R. 1 on Thursday afternoon, and will send the bill to the floor for a vote next week.  This puts the House on track to pass its tax bill prior to the Thanksgiving Holiday.   The Senate, however, will likely vote on its final package after Thanksgiving, according to a statement from Senate Majority Whip John Cornyn (R-TX).
To keep track of ongoing tax policy developments, AHC is conducting a webinar  featuring congressional and industry presenters on Monday, November 13 at 3:00 PM ET.  To view a copy of an outline of the bill’s key provisions and revenue impacts, please click here: https://www.finance.senate.gov/imo/media/doc/11.9.17%20JCT.pdf. To see a two-page copy of the plan’s “policy highlights,” please click here: https://www.finance.senate.gov/imo/media/doc/11.9.17%20Policy%20Highlights.pdf
To view a 253-page description of the bill’s provisions, please click here:
https://www.finance.senate.gov/imo/media/doc/11.9.17%20Chairman’s%20Mark.pdf

For more information, please contact Bryan Brendle, Director of Legislative Affairs, at bbrendle@horsecouncil.org.

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House Releases Tax Reform Details

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The following is from the American Horse Council:

House Releases Tax Reform Legislation, Moves Forward with Small Business, Estate Tax Relief

The House Ways and Means Committee has shared highlights and text on historic tax reform legislation, the Tax Cuts and Jobs Act of 2017.  While highlights from the bill are outlined below, AHC is currently reviewing the fine print of the 429-page legislation, received from the tax committee shortly after 12:00 PM ET.  Today’s release initiates a long over-due effort to streamline the nation’s 70,000 page tax code.  In a move that is consistent with advocacy from the equine industry and its allies, the House bill will repeal the estate tax after six years, and reduce rates for small business, or so-called “pass through” entities.  Please see the below highlights, focusing on issues that have the most significant impact on the equine industry:

Business Provisions

  • Small Business: The bill sets a maximum tax rate of 25 percent on small business, or “pass through” entities.  Under current law, small businesses can pay federal taxes at rates as high as 39.6 percent.
  • Corporate Tax Rate: The bill lowers the corporate rate to 20 percent, down from the current 35 percent corporate tax rate.
  • Expensing: The plan will “allow business to immediately write off the full cost of new equipment.”
  • Business Interest: The plan also states that small business will be able to deduct interest on loans that allow job creators to “hire workers and increase paychecks.”

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Individual Provisions

  • Estate Tax: The House bill will repeal the estate tax after six years, and double the current exemption on estates valued at $5.49 million.  This is a positive development for family-owned farms and businesses.
  • Charitable Giving: The plan “continues the deduction for charitable contributions.”
  • Mortgage Interest: The bill preserves the deduction for existing mortgage interest, and establishes a $500,000 cap on interest from new home purchases
  • Streamlined Tax Brackets: The plan consolidates the number of individual brackets from seven to four.  Under the House bill, the IRS will create brackets at rates of 12 percent, 25 percent, 35 percent and preserve the 39.6 percent on higher income earners.
  • Retirement Savings: The plan “retains retirement plan options” including 401(k)s and Individual Retirement Accounts.
  • Alternative Minimum Tax (AMT) – The plan eliminates the unpopular AMT, which doubles the amount of time taxpayers must spend to calculate their tax liability within any given year.
  • In a compromise that has bogged down negotiations, the House plan will retain the deduction for state and local property taxes at amounts up to $10,000.

Path Forward

According to congressional sources, the Ways and Means Committee will mark up the legislation for four days, beginning the week of Monday, November 6.   The bill will go to the House floor for a vote before Thanksgiving, which falls on Thursday, November 23.  According to Senate Majority Whip John Cornyn (R-TX), the Senate will take up tax reform legislation after Thanksgiving.

To learn more about up-to-date activity related to tax reform, AHC is conducting a webinar on the issue featuring congressional and industry perspectives on Monday, November 13 at 3:00 PM ET.  To view a copy of a two-page summary of the bill’s highlights, please click here:  Tax Policy Highlights.  To review a copy of the bill, please click here: now available online.

For more information, please contact Bryan Brendle, Director of Legislative Affairs, at bbrendle@horsecouncil.org.

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National Equine Health Plan Published

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The following is from the American Horse Council:

National Equine Health Plan Published

Valuable resource will help curtail risk of disease spread

The American Horse Council (AHC), in conjunction with the American Association of Equine Practitioners (AAEP), the United States Department of Agriculture (USDA), and state animal health officials, is pleased to announce that the National Equine Health Plan (NEHP) is now available at equinediseasecc.org/national-equine-health-plan.

The horse industry is unique because horses are transported with more frequency than other livestock. It’s been seen firsthand how disease outbreaks cost the industry millions of dollars for the care of sick horses, implementation of biosecurity, and lost revenue in the form of cancelled or restricted commercial equine activities such as horseshows. In 2013, the industry felt it was time to step up and address the issue of the handling of disease outbreaks and the dissemination of information surrounding the outbreaks. This gave way to the creation of the NEHP that will outline the issues surrounding the prevention, diagnosis and control of diseases and the responsibilities and roles of the federal and state authorities and the industry.

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The goals of the NEHP are to protect the health and welfare of the U.S. equine population, facilitate the continued interstate and international movement of horses and their products, ensure the availability of regulatory services, and protect the economic continuity of business in the equine industry.

The NEHP also functions as a roadmap for coordinating horse owners and industry organizations with veterinarians and state and federal animal health officials to prevent, recognize, control and respond to diseases and environmental disasters. The plan facilitates horse industry preparedness, effective rapid communication, and owner education, which make up the foundation for preventing diseases and disease spread. Links to information and resources are included in the NEHP document, including a list of “Roles and Responsibilities” for all stakeholders in the industry.

The Equine Disease Communication Center (EDCC) is a key element of the NEHP and provides critical communication of information during disease outbreaks. Additionally, equinediseasecc.org provides information about diseases, vaccination, biosecurity, state health regulations, state animal health official contact information and links to USDA-APHIS veterinary services. By integrating the roles of regulatory agencies with industry stakeholders, equine health and welfare are improved.

The NEHP provides immediate access to resources and communications needed to optimize disease mitigation and prevention. It serves as a guide for regulations and responses needed to mitigate and prevent infectious diseases. The AHC and the AAEP encourage sharing this document as it will help educate horse owners about how veterinarians and state and federal officials work together to decrease the risk of disease spread.

If you have any questions about the NEHP or the EDCC, please contact Dr. Nat White at edcc@aaep.org or Cliff Williamson, Director of Health & Regulatory Affairs at the AHC at cwilliamson@horsecouncil.org.

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