The pari-mutuel excise tax credits go to the racetrack, which contracts with Breeders’ Cup for distribution of pari-mutuel handle and other sources of revenue from the championships.

The 2010 Breeders’ Cup is scheduled for Churchill Downs, but no sites have been determined for future runnings. If this year’s Breeders’ Cup stays in California, Thayer told the Paulick Report that for the 2010 tax credits to kick in, the Breeders’ Cup will have to be contractually obligated to return to Kentucky in 2011 or 2012. He estimated the tax credit was worth $700,000 when the Breeders’ Cup was last staged at Churchill Downs as a one-day event in 2006. The amendment requires a minimum of $500,000 of the tax credit be used to fund Breeders’ Cup undercard races.

Thayer worked for the Breeders’ Cup from 1999 until parting ways with the organization in 2007, when he was vice president of event management. He started his own consulting firm and was given a six-month deal with the Breeders’ Cup to help with the 2007 championships at Monmouth Park – its first year as a two-day event – but that deal was not renewed.

The racing industry veteran and second-term state senator pushed for the Breeders’ Cup incentives in spite of any bitterness over his parting with the organization.

“As a legislator I have a responsibility to enact policy that I believe is beneficial to the commonwealth and having the Breeders’ Cup in Kentucky is an economic windfall for the state,” he said. “The University of Louisville said it has a $30-million impact for a one day event, and I’m no economist but I would think a two-day event could be worth $40-$50 million. Plus, the horse sales in Lexington that follow the Breeders’ Cup benefit by the Breeders’ Cup being in Kentucky. A rising tide lifts all ships. I tried to put any of my personal feelings aside and try to do what was right for Kentucky and the horse industry — which are not mutually exclusive, by the way.”

Though Breeders’ Cup president Greg Avioli has publicly stated the bankruptcy of Magna should not affect the ability of the Oak Tree Racing Association to host the event this year, Breeders’ Cup has retained legal counsel that specializes in bankruptcy and has Churchill Downs pegged as an emergency backup site. There are some fears that a bankruptcy trustee could nullify any leases that are not profitable to Magna, which could leave Oak Tree without a home.

“I’m well aware of the issues with Magna and how it could affect the Breeders’ Cup and Oak Tree, and that’s why I included 2009 in the Breeders’ Cup tax credit legislation,” Thayer said. “If there’s a chance Kentucky could get it back, I wanted to make sure the definition included a two-day event instead of a the one-day event that’s currently on the books.”

Thayer also submitted a one-day pari-mutuel excise tax credits to all Kentucky tracks that race 30 days or more, with Kentucky Oaks, Derby and Blue Grass days not eligible.

The same economic development bill includes a sales tax rebate for Kentucky Speedway, which is now owned by billionaire Bruton Smith’s Speedway Motorsports. The rebate will pay for 25% of the renovations to Kentucky Speedway if the track is able to secure a NASCAR event.

The bill returns to the House, where it is expected to be passed during the final two days of the General Assembly’s regular session March 26-27.