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Photo courtesy of John C. Engelhardt /


The Kentucky Breeders' Incentive Fund was implemented in 2005 to ensure the strength and growth of the horse industry in Kentucky.  The fund is financed through a 6 percent sales tax paid for breeding a stallion to a mare in the state of Kentucky.  This is not a new tax; it is the same tax that has been required to be paid on stud fees. 

Prior to the establishment of the Breeders' Incentive Fund, these taxes went directly into the General Fund of the Commonwealth, not back to the horse industry.  The Incentive Fund is divided 80 percent to the Kentucky Thoroughbred Breeders' Incentive Fund (KBIF), 13 percent to the Kentucky Standardbred Breeders' Incentive Fund, which funds the Kentucky Sire Stakes (KYSS) and 7 percent to the Kentucky Horse Breeders' Incentive Fund (KHBIF).

The development funds, Kentucky Thoroughbred Development Fund (KTDF) and the Kentucky Standardbred Development Fund (KSDF), and the Kentucky Quarter Horse, Paint Horse, Appaloosa and Arabian Development Fund, were established to promote, enhance, improve, and encourage breeding in Kentucky by providing supplemental purses for designated races.