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Frequently Asked Questions

Learn more about the AQHA Incentive Fund.

Changes to the Incentive Fund will be implemented in 2013. Read more about the changes.

How does the program work?

The money comes from the enrollment of stallions into the program and subsequent nomination of their foals.

For a stallion's offspring to be eligible, he must be enrolled by November 30 prior to each breeding season at a fee based on the number of mares on his previous year's breeding report. This annual enrollment makes his foals, resulting from that breeding year, eligible to be nominated into the program.

Foals by these stallions are currently eligible to be nominated into the program during their first 12 months of age, provided the foal has not earned a 1/2 point or more in an AQHA-approved event, for a one-time, "for-life" nomination fee. From the foaling date to the seventh month birth date, the nomination fee is $100. After the seventh month to the 12th month birth date, the fee is $200. Foals may be nominated to the Incentive Fund from the 12- to 18- month birth date at a fee of $1,000 and from the 18- to 24- month birth date at a fee of $2,500.

Is your horse licensed to receive AQHA Incentive Fund money in 2013? Find out if AQHA has your Incentive Fund license form on file.

The Incentive Fund utilizes the most familiar and proven concept in the American Quarter Horse Show industry, points won at AQHA shows. Each point earned at an AQHA-approved show in the open and/or amateur division by an Incentive Fund nominated horse will be worth a specific amount. The exact amount will depend on total money in the Fund for that show year and the total number of points earned in that year by Incentive Fund nominated horses.

Who can nominate a horse to the program?

Only the owner or lessee as recorded on AQHA records can be shown as the nominator.

Why was the fee structure changed for the stallion program?

To make it more fair and equitable to all concerned. Enforcement of the previous rule was very difficult and sometimes impossible.

How do I know what stallions are nominated prior to breeding my mare?

Check The Quarter Horse Journal. Beginning in October, a listing of stallions nominated for the upcoming breeding season is carried monthly through April of the breeding year.

Nominators of stallions also have a Nomination Certificate for each year that the stallion is nominated. Also, you may call AQHA to verify a nomination.

How do I know if a foal is enrolled and eligible to earn money?

Foal enrollments are verified by an Incentive Fund stamp in the upper left corner of the Registration Certificate. You also may call AQHA to verify a nomination.

Why are foals going to be allowed to be nominated up to their 24th month birthdate?

To give people an avenue to nominate if they miss the 12th month deadline. All agreed the fee should be substantial after the 12th month deadline so foal enrollments would not decline. This was effective with 1998 foals.

How and to whom is the money paid?

At the end of every show year, the total number of points earned by Incentive Fund horses is divided into the total amount of money in the Fund for that year. This establishes a dollar value for each point.

Each year, the owner of the Incentive Fund-nominated horse (if a competition license has been filed), will receive a check for 70 percent of the horse's earnings. The foal nominator will receive 15 percent of the horse's earnings and the horse’s sire nominator will get 15 percent. If a point-earning horse is owned by multiple record owners during a year, the premium money awarded to each of the record owners will be in proportion to the points earned during each record ownership period according to AQHA's records.

If a foal is nominated to the Incentive Fund, but is not licensed in accordance with the program, the nominator of the sire for the breeding season in which the foal was conceived and the nominator of the foal shall remain eligible to earn Incentive Fund Money for the points earned by the foal. 

Why is my social security number required? Are the earnings taxed?

Yes, they are taxable. AQHA is required to file an annual information return with the Internal Revenue Service. Each person who receives Incentive Fund money will receive a copy of that information return at the end of the year in which the money was paid.

Therefore, it is important that you use the same tax number (social security number) on all nominations made by a given nominator, and the tax number should match the name exactly according to IRS records, especially in the case of a farm, ranch or joint ownership. If a tax number is not supplied to AQHA, we must deduct 30 percent of the earnings according to IRS regulations.

Is any money withheld from the fees paid? What happens to the interest?

AQHA may deduct accumulated cost of administering the program from the gross proceeds from the stallion and foal nominations, not to exceed 10 percent. All funds received from the nominations are invested, with the earned interest being added back to the Incentive Fund.

When are the checks mailed?

Points are tabulated on shows held through December 31. Show management has 10 days in which to submit the show results. It then takes several days to process the results and make any necessary corrections. The computation of Incentive Fund earnings is based on AQHA records as of January 31. Subsequent corrections to show records will not affect the money earned or paid.

Are Youth and Level 1 (Novice) programs included in the Incentive Fund?

No. Initially youth points were not included so that they would not jeopardize AQHYA members' University Interscholastic League eligibility. When the program was reviewed, all agreed that youth should show for fun and experience, not money. They felt there is already too much pressure on youth exhibitors to "win," and to make Incentive Fund money available would only increase that pressure.

The Level 1 (Novice) program is not included because it is a division limited by the experience of the rider.

Why do I have to list my stud fee on the nomination form?

You don't. If you do, we will publish it in the Journal listing for you.

What are the fees for enrolling my eligible foal?

Mares bred to AQHA Incentive Fund nominated stallions are eligible to be nominated to earn Incentive Fund money for their show record.

When the time comes to register the foal, be sure to complete the Incentive Fund section of the registration application. Your foal will then be nominated and eligible to earn Incentive Fund money!

AQHA will need your Social Security Number or Tax ID number on file for you to be eligible to nominate your horse to the Incentive Fund. Don’t have a Tax ID number, but plan on joining this multi-million-dollar program? Click here for access to the United States Internal Revenue Service Web site and get one.

Foal Nomination Fee Schedule

Birth to 7th month birthdate - $100
 
7th to 12th month birthdate - $200
 
12th to 18th month birthdate - $1,000
 
18th to 24th month birthdate - $2,500

After a foal reaches two years of age or earns half a point or more in AQHA events, he is ineligible to be nominated.

What are the fees for nominating my stallion?

For your stallion's offspring to be eligible, he must be enrolled by November 30 prior to each breeding season at a fee based on the number of mares on his previous year's stallion breeding report. This annual enrollment makes all his foals born from that breeding year, eligible to be nominated into the program. Click here to signup now!

Stallion Nomination Fees

  • 1 mare - $100
  • 2 mares - $200
  • 3 mares - $300
  • 4 mares - $400
  • 5-10 mares - $500
  • 11-15 mares - $600
  • 16-20 mares - $700
  • 21-25 mares - $800
  • 26-30 mares - $900
  • 31-35 mares - $1,000
  • 36-40 mares - $1,100
  • 41-50 mares - $1,250
  • 51-60 mares - $1,500
  • 61-80 mares - $2,000
  • 81-100 mares - $2,500
  • 101 or more mares - $3,000

Based on the number of mares listed on the previous year's Stallion Breeding Report