Tax Issues

Several tax bills were passed in the last Congress that extended tax benefits for the horse industry for additional years.  The American Recovery and Reinvestment Act of 2009, better known as the stimulus act, the Hiring Incentives to Restore Employment Act, and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, passed during the lame-duck session, all included important tax benefits. Some of these provisions have been extended; others have not allowing them to revert to prior levels, which are still favorable.

On November 18, 2011 the President signed the FY 2012 USDA appropriations bill (H.R. 2112) this bill provides funding for the USDA for the 2012 fiscal year (October 1, 2011 through September 30, 2012) and contains several provisions of interest to the horse industry. The bill also included a Continuing Resolution (CR) that funded other government activities through December 16, 2011 and contained a provision concerning a new H-2B temporary worker program wage rule opposed by the AHC.     Background

In April 2011, the Senate passed and the President signed the bill to repeal the new 1099 reporting requirement that was scheduled to kick-in in 2012. The House had approved the same bill (H.R 4), introduced by Congressman Lungren (R-CA), earlier this year. The bill repeals only the new broader reporting requirements.  Businesses will still have to send 1099s to independent contractors as current law requires.