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FAQs
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Is it a state requirement that all breeding stallions in Kentucky be tested for Contagious Equine Metritis (CEM)?
No. While there has been much discussion about Contagious Equine Metritis (CEM), the fact remains only a small number of QH stallions in KY have had any exposure risk to CEM, and these horses have been identified by the state veterinarians office and are under treatment protocols if necessary. However, the KyQHA highly recommends that all Quarter Horse breeding stallions in Kentucky, especially those participating in the Kentucky Quarter Horse Breeders' Incentive Fund, proactively and voluntarily be tested for CEM as a quality assurance measure for those mare owners considering sending a mare to Kentucky for breeding.
What is the KyQHA Breeders’ Incentive Fund?
The KyQHA BIF Fund is a state-legislated economic development program intended to stimulate growth of the Quarter Horse breeding industry in Kentucky through special, earned incentives paid to breeders, owners, and owners of sires.
How and when did a Quarter Horse fund start?
The Kentucky Legislature passed enabling legislation for this program during the 2005 session of the General Assembly. The first funds are being paid out in 2007 based on a record of success in showing or racing by eligible horses in 2006.
What is the source of the funds being paid out?
The funds for all the breeder incentive programs in Kentucky regardless of breed come from sales taxes paid on stud fees. The legislation that created the programs earmarked approximately $1 million annually for so-called “non-race breeds.”
Why were Quarter Horses a “non-race” breed?
By 2005, there had been only two days of pari-mutuel Quarter Horse racing since 1992, while the majority of Quarter Horses in Kentucky were clearly non-racing. As a result, legislative leaders opted to treat Quarter Horses as a non-race breed.
Who is responsible for administering the Fund?
The responsibility for oversight of the incentive programs rests with the Kentucky Horse Racing Authority. The Quarter Horse BIF is supervised by the designated affiliate of the national breed registry, i.e., the Kentucky Quarter Horse Association.
What is the criterion for eligibility to the Fund?
An AQHA-registered horse, in order to be eligible, must have been bred and foaled in the Commonwealth of Kentucky. In addition, a show horse must have been sired by a stallion standing in Kentucky that has been nominated to the AQHA’s Incentive Fund.
Why is this Fund limited only to AQHA events?
The first reason is that the intent of the Legislature was to stimulate horse breeding in this state. By limiting awards to AQHA events, the focus remains squarely on Quarter Horses as a breed. Secondly, this approach is manageable and efficient.
Do the horses have to compete within Kentucky?
Because the purpose is to stimulate demand for Kentucky-bred horses, KyQHA believes that demand will be much higher if there are no restrictions on where owners may show or race. Winning Kentucky-breds can earn awards anywhere.
Who gets the award, the breeder or the owner?
Because the program is demand-oriented, the vast majority (80%) of each award goes to the owner who shows or races the horse. Ten percent goes to the breeder/foal nominator and the other ten percent, if applicable, goes to the owner of the sire at conception or the sire’s nominator for the breeding season that produced the offspring. If ownership of a horse changes within the year, award money goes to the owner at the time the points were earned.
Why doesn’t the breeder receive all the money?
Incentive programs that reward breeders are supply-oriented. These programs tend to lower the market price of horses – increased supply, equal demand. A demand-oriented program – equal supply, increased demand – raises the price of horses.
Why not put the money into purses or prizes?
Putting money into purses or prizes would limit program participation to owners/buyers of eligible KY-bred Quarter Horses who race or show in Kentucky. This program sets no limitations on when or where an eligible KY-bred can earn points. As a result, there is a broader participation and a far greater economic impact on the breed.
Are any memberships required to earn points?
YES. In order to be eligible for an award for competition year 2013, all owners, breeders, foal nominators, sire owners, and sire nominators of KyQHA BIF eligible horses must be members in good standing of the American Quarter Horse Association and the Kentucky Quarter Horse Association as of July 1 of the payout year (example: by July 1, 2014 you must be an AQHA and KyQHA member in good standing for awards earned in program year 2013). NO MEMBERSHIP NOTIFICATIONS WILL BE POSTED, MAILED OR OTHERWISE COMMUNICATED; ALL RESPONSIBILITY TO HOLD REQUIRED MEMBERSHIPS RESTS WITH THOSE ANTICIPATING AN AWARD.
Is there a deadline for stallion enrollment?
In complying with rule 19, the deadline for stallion enrollment is February 1 of the breeding year. A signed stallion enrollment form with a declared residence should be on file with the KyQHA Office. Keep in mind that you must meet all deadlines for the AQHA IF nominations as well.
Do stallions standing for racing offspring need to be nominated to the AQHA Incentive Fund?
Racing stallions do not have to be nominated to the AQHA IF, but it is recommended so that the offspring are more valuable and versatile.
Do broodmares need to be enrolled in the KyQHA BIF?
No. The only requirement on the broodmare is that she be located in Kentucky during breeding and foaling. A breeding report will serve as a record of which mares are bred. A veterinary report will verify the foaling in Kentucky.
How do I enroll my horse to be eligible for awards?
There is no enrollment required for a horse to receive KyQHA BIF awards. However, we encourage owners to have their horses verified as eligible. Once the KyQHA office has officially reviewed a horse’s papers and breeding information, we will place the eligible horse’s name on the KyQHA web site. This saves the association time when determining award winners. For more information, go to https://www.kyqha.com/kqhbif/eligiblehorse-verify.htm
How do I pay sales tax on breeding services?
If you are going to sell stud services in the state of Kentucky, you should apply for a Sales and Use Tax ID with the Kentucky Department of Revenue and file a quarterly Sales and Use Tax return. Along with this return, you should also file Form 51A132 which dedicates the tax to the Breeders' Incentive Fund. For more information about the sales and use tax visit here.
