US Federal 2025-2026 Regular Session

US Federal House Bill HB112

Introduced
2/7/25  

Caption

Farewell to Unnecessary Energy Lifelines Reform Act of 2025 or the FUEL Reform Act This bill repeals Title IX (Energy) of the Farm Security and Rural Investment Act of 2002 (i.e., the 2002 farm bill). The title authorizes various energy programs that are administered by the Department of Agriculture and primarily provide support and incentives for renewable energy projects. For example, these programs include the BioPreferred Program; the Rural Energy for America Program; and the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. 

Impact

The proposed amendment is set to take effect for taxable years beginning after December 31, 2024. If enacted, this would align the treatment of horses more closely with that of other types of livestock, which are often easier to qualify as section 1231 assets. Advocates of the bill argue that this change would stimulate the equine industry by providing tax benefits that encourage investments in horses within the state, ultimately supporting related businesses and jobs.

Summary

House Bill 1112, known as the Racehorse Tax Parity Act, aims to amend the Internal Revenue Code of 1986. The primary focus of the bill is to reduce the holding period required to classify horses as section 1231 assets from a longer duration down to 12 months. This change is significant for horse owners and those involved in the equine industry, as it aims to provide favorable tax treatment by allowing for more favorable capital gain treatment sooner than previously allowed.

Conclusion

Overall, HB1112 seeks to modernize the tax treatment of horses and might significantly impact both individual horse owners and the broader equestrian industry by enhancing financial viability through improved tax conditions. The reception of the bill will likely depend on the balance between industry support and broader tax policy perspectives.

Contention

While the bill appears to have support within segments of the equine community, there may be concerns from factions advocating for more stringent tax regulations or those skeptical about benefits specifically tailored to niche industries. The potential for abuse of the tax benefit and differing opinions on tax equity within agriculture could emerge as points of contention as discussions progress.

Congress_id

119-HR-112

Policy_area

Agriculture and Food

Introduced_date

2025-01-03

Companion Bills

No companion bills found.

Previously Filed As

US SB144

Farm to Fly Act of 2025This bill directs the Department of Agriculture (USDA) to integrate the advancement of sustainable aviation fuels into its programs.Specifically, this bill includes sustainable aviation fuel as an advanced biofuel for the purposes of several USDA bioenergy programs that primarily provide support and incentives for renewable energy projects.For purposes of these programs, the bill defines sustainable aviation fuel as liquid fuel, the portion of which is not kerosene, which (1) meets specific international standards, (2) is not derived from coprocessing specific materials (e.g., triglycerides) with a non-biomass feedstock, (3) is not derived from palm fatty acid distillates or petroleum, and (4) is certified as having a lifecycle greenhouse gas emissions reduction percentage of at least 50% compared with petroleum-based jet fuel (based on specific standards and agreements).In addition, the bill specifically includes fostering and advancing sustainable aviation fuels as part of the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program.Further, USDA must carry out a comprehensive and integrated pursuit of all USDA mission areas for the advancement of sustainable aviation fuels, including throughthe identification of opportunities to maximize the development and commercialization of the fuels,supporting rural economic development through improved sustainability for aviation, andadvancing public-private partnerships.

US S09895

Repeals the major renewable energy development program, including the office of renewable energy siting and electric transmission; and amends various provisions of law relating thereto.

US H6203

Repeals the Renewable Energy Growth Program.

US H7176

Repeals the renewable energy growth program.

US HB1662

LEAP Act Leveraging and Energizing America’s Apprenticeship Programs Act

US HB502

Protecting Infrastructure Investments for Rural America Act This bill modifies the definition of rural area that is used for the Rural Surface Transportation Grant Program and adds provisions for small communities.As background, the grant program supports projects that improve and expand the surface transportation infrastructure in rural areas. Eligible applicants for the grant program include states, regional transportation planning organizations, local governments, and tribal governments.For purposes of the program, the bill defines rural area as an area outside an urbanized area that has a population of 30,000 or less. Current law requires a rural area to be outside of an urbanized area with a population of over 200,000.The bill includes provisions for small communities (i.e., an area outside an urbanized area and that has a population of 5,000 or less). The bill sets the maximum federal cost-share at 90% for project grants carried out in a small community. The Department of Transportation (DOT) must use at least 5% of the program's annual funds to provide grants for projects in small communities. The bill also removes the prohibition against DOT using more than 10% of program funds for grants that are under $25 million.Further, program grants may be used for highway, road, bridge, or tunnel projects that would benefit the economic development or quality of life for citizens of the local community.The bill also specifies that the program's goals include the generation of economic growth and development in rural areas. 

US HB2566

Relating to the State Department of Energy's community renewable and resilient energy grant program.

US SB01497

An Act Concerning Programming At The Department Of Agriculture And Other Farming And Agriculture Related Provisions.

US AB1260

Electricity: renewable energy subscription programs.

US AB1176

Energy: renewable energy resources program.

Similar Bills

No similar bills found.