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The “Big Beautiful Bill” (H.R. 1) presents equine businesses with several advantages, including opportunities for bonus depreciation, relief from estate taxes,deductions for tip income and options for the sale of farmland.However, it also introduces a set of new obstacles, such as IRSprocessing delays, heightened identity verification requirementsand the gradual elimination of certain incentives.While the bill revives and expands provisions from the 2017Tax Cuts and Jobs Act, its rollout was hindered by IRS operational hurdles that include staffing shortages, leadershipchanges, budget constraints and the 43-day government shutdown that began October 1.Given these changes, now is the ideal moment for individualsand businesses to review their operations, refresh complianceprotocols and consult with experienced tax advisers. Remainingproactive, updating internal procedures and seeking expert advice will be crucial for successfully adapting to the shifting taxenvironment.Bonus Depreciation returnsH.R. 1 brings back 100% bonus depreciation, giving equinebusinesses a powerful tax advantage. For qualifying propertypurchased after January 19, 2025, you can deduct the full cost inthe year you put the asset into service, reversing the previousrule that capped deductions at 60% in 2024. This covers racehorses, breeding stock, farm equipment and specialized veterinary tools, allowing operations to claim immediate tax savingsand have money for reinvestment.For instance, a racing stable buying yearlings in 2026 or abreeding farm upgrading equipment can deduct all costs upfront, boosting cash flow. Even small facilities benefit, whetherthey’re installing new ventilation systems or fencing. Tax professionals should help clients identify eligible purchases andkeep thorough records. Timing is important: assets must be acquired and placed in service after January 19, 2025, so accelerating purchases could increase savings.Despite ongoing IRS challenges, bonus depreciation givesequine businesses a clear path to immediate tax relief and financial growth.Farm sales anD installment Gains H.R. 1 introduces an installment option for capital gains taxeson farmland sales to qualified farmers, giving long-term equinelandowners a way to manage taxes and transition property. Sellers, including individuals, trusts or entities, can spread capitalgains taxes over four equal annual payments if the land was usedfor agriculture or rented to a qualified farmer for at least 10 yearsbefore the sale and stays restricted to agricultural use for 10 yearsafter.This helps equine landowners with pastureland, training facilities or breeding operations. For example, a retired trainerwho leased land to a boarding business can now sell and defertaxes over four years if the land stays agricultural. Family horsefarms can use this option to pass land to the next generation withdeed restrictions or easements.H.R.1, President Donald Trump’s “Big Beautiful Bill,” Provides Tax Advances For Equine Professionals And Operationsby the American Horse Council54 Arizona Horse Connection February, 2026Twisted Tree Farm29001 N. Hayden Rd. • Scottsdale, AZ 85266(480) 860-8215 • www.twistedtreefarm.comHunter/Jumper Horse Boarding & Training Barn• Beginner To AdvancedRiding Lessons• Training • Internships• Show Jumpers For SaleDedicated to showingchampion hunters,jumpers and hunt seat equitation at all levels throughoutthe United States,Canada and Mexico. Janet Hischercontinued on page 56