[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4054 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4054
To amend the Internal Revenue Code of 1986 to treat Indian tribal
governments in the same manner as State governments for certain Federal
tax purposes, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 22, 2021
Mr. Kind (for himself, Mr. Kelly of Pennsylvania, Ms. Davids of Kansas,
Mr. Cole, Ms. Moore of Wisconsin, Mrs. Walorski, Ms. DelBene, Mr.
Schweikert, Mr. Kilmer, and Mr. Moolenaar) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committee on Education and Labor, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to treat Indian tribal
governments in the same manner as State governments for certain Federal
tax purposes, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Tribal Tax and Investment Reform Act
of 2021''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) There is a unique Federal legal and political
relationship between the United States and Indian tribes.
(2) Indian tribes have the responsibility and authority to
provide governmental programs and services to tribal citizens,
develop tribal economies, and build community infrastructure to
ensure that Indian reservation lands serve as livable,
permanent homes.
(3) The United States Constitution, U.S. Federal Court
decisions, Executive orders, and numerous other Federal laws
and regulations recognize that Indian tribes are governments,
retaining the inherent authority to tax and operate as other
governments, including (inter alia) financing projects with
government bonds and maintaining eligibility for general tax
exemptions via their government status.
(4) Codifying tax parity with respect to tribal governments
is consistent with Federal treaties recognizing the sovereignty
of tribal governments.
(5) That Indian tribes face historic disadvantages in
accessing the underlying capital to build the necessary
infrastructure for job creation, and that certain statutory
restrictions on tribal governance further inhibit tribes'
ability to develop strong governance and economies.
(6) Indian tribes are sometimes excluded from the Internal
Revenue Code of 1986 in key provisions which results in unfair
tax treatment for tribal citizens or unequal enforcement
authority for tribal enforcement agencies.
(7) Congress is vested with the authority to regulate
commerce with Indian tribes, and hereby exercises that
authority in a manner which furthers tribal self-governance,
and in doing so, further affirms the United States government-
to-government relationship with Indian tribes.
SEC. 3. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO BOND
ISSUANCE.
(a) In General.--Subsection (c) of section 7871 of the Internal
Revenue Code of 1986 (relating to Indian tribal governments treated as
States for certain purposes) is amended to read as follows:
``(c) Special Rules for Tax-Exempt Bonds.--In applying section 146
to bonds issued by Indian tribal governments (or subdivisions thereof)
the Secretary of the Treasury shall annually--
``(1) establish a national bond volume cap based on the
greater of--
``(A) the State population formula approach in
section 146(d)(1)(A) (using national tribal population
estimates supplied annually by the Department of the
Interior in consultation with the Census Bureau), and
``(B) the minimum State ceiling amount in section
146(d)(1)(B) (as adjusted in accordance with the cost
of living provision in section 146(d)(2)), and
``(2) allocate such national bond volume cap among all
Indian tribal governments seeking such an allocation in a
particular year under regulations prescribed by the
Secretary.''.
(b) Repeal of Essential Governmental Function Requirements.--
Section 7871 of such Code is further amended by striking subsections
(b) and (e).
(c) Conforming Amendment.--Subparagraph (B) of section 45(c)(9) of
such Code is amended to read as follows:
``(B) Indian tribe.--For purposes of this
paragraph, the term `Indian tribe' means any Indian
tribe, band, nation, or other organized group or
community which is recognized as eligible for the
special programs and services provided by the United
States to Indians because of their status as
Indians.''.
(d) Effective Date.--
(1) Subsection (a).--The amendment made by subsection (a)
shall apply to obligations issued in calendar years beginning
after the date of the enactment of this Act.
(2) Subsection (b).--The repeals made by subsection (b)
shall apply to transactions after, and obligations issued in
calendar years beginning after, the date of the enactment of
this Act.
SEC. 4. TREATMENT OF PENSION AND EMPLOYEE BENEFIT PLANS MAINTAINED BY
TRIBAL GOVERNMENTS.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) Qualified public safety employee.--Section 72(t)(10)(B)
of the Internal Revenue Code of 1986 (defining qualified public
safety employee) is amended by--
(A) striking ``or political subdivision of a
State'' and inserting ``, political subdivision of a
State, or Indian tribe''; and
(B) striking ``such State or political
subdivision'' and inserting ``such State, political
subdivision, or Indian tribe''.
(2) Governmental plan.--The last sentence of section 414(d)
of such Code (defining governmental plan) is amended to read as
follows: ``The term `governmental plan' includes a plan
established or maintained for its employees by an Indian tribal
government (as defined in section 7701(a)(40)), a subdivision
of an Indian tribal government (determined in accordance with
section 7871(d)), an agency, instrumentality, or subdivision of
an Indian tribal government, or an entity established under
Federal, State, or tribal law which is wholly owned or
controlled by any of the foregoing.''.
(3) Domestic relations order.--Section 414(p)(1)(B)(ii) of
such Code (defining domestic relations order) is amended by
inserting ``or tribal'' after ``State''.
(4) Exempt governmental deferred compensation plan.--
Section 3121(v)(3) of such Code (defining governmental deferred
compensation plan) is amended by inserting ``by an Indian
tribal government or subdivision thereof,'' after ``political
subdivision thereof,''.
(5) Grandfather of certain deferred compensation plans.--
Section 457 of such Code is amended by adding at the end the
following new subsection:
``(h) Certain Tribal Government Plans Grandfathered.--Plans
established before the date of enactment of this subsection and
maintained by an Indian tribal government (as defined in section
7701(a)(40)), a subdivision of an Indian tribal government (determined
in accordance with section 7871(d)), an agency, instrumentality, or
subdivision of an Indian tribal government, or an entity established
under Federal, State, or tribal law which is wholly owned or controlled
by any of the foregoing, in compliance with subsection (b) or (f) shall
be treated as if established by an eligible employer under subsection
(e)(1)(A).''.
(b) Amendments to the Employee Retirement Income Security Act of
1974.--
(1) In general.--The last sentence of section 3(32) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002(32)) is amended to read as follows: ``The term
`governmental plan' includes a plan established or maintained
for its employees by an Indian tribal government (as defined in
section 7701(a)(40) of the Internal Revenue Code of 1986), a
subdivision of an Indian tribal government (determined in
accordance with section 7871(d) of such Code), an agency,
instrumentality, or subdivision of an Indian tribal government,
or an entity established under Federal, State, or tribal law
which is wholly owned or controlled by any of the foregoing.''.
(2) Domestic relations order.--Section 206(d)(3)(B)(ii)(II)
of such Act (29 U.S.C. 1056(d)(3)(B)(ii)(II)) is amended by
inserting ``or tribal'' after ``State''.
(3) Conforming amendments.--
(A) Section 4021(b) of such Act (29 U.S.C. 1321(b))
is amended by striking ``or'' at the end of paragraph
(12), by striking the period at the end of paragraph
(13) and inserting ``; or'', and by inserting after
paragraph (13) the following new paragraph:
``(14) established or maintained for its employees by an
Indian tribal government (as defined in section 7701(a)(40) of
the Internal Revenue Code of 1986), a subdivision of an Indian
tribal government (determined in accordance with section
7871(d) of such Code), an agency, instrumentality, or
subdivision of an Indian tribal government, or an entity
established under Federal, State, or tribal law which is wholly
owned or controlled by any of the foregoing.''.
(B) Section 4021(b)(2) of such Act (29 U.S.C.
1321(b)(2)) is amended by striking ``, or which is
described in the last sentence of section 3(32)'' and
inserting a comma.
(c) Effective Date.--The amendments made by this section shall
apply to years beginning after the date of the enactment of this Act.
SEC. 5. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE CHARITIES
FUNDED AND CONTROLLED BY OTHER GOVERNMENTAL FUNDERS AND
SPONSORS.
(a) In General.--Section 170(b)(1)(A) of the Internal Revenue Code
of 1986 is amended by adding at the end the following: ``For purposes
of clause (vi), the term `governmental unit' includes an Indian tribal
government (determined in accordance with section 7871(d) of such
Code), an agency, instrumentality, or subdivision of an Indian tribal
government, or an entity established under Federal, State, or tribal
law which is wholly owned or controlled by any of the foregoing.''.
(b) Certain Supporting Organizations.--Section 509(a) of such Code
is amended by adding at the end the following: ``For purposes of
paragraph (3), an organization described in paragraph (2) shall be
deemed to include an Indian tribal government (determined in accordance
with section 7871(d) of such Code), an agency, instrumentality, or
subdivision of an Indian tribal government, or an entity established
under Federal, State, or tribal law which is wholly owned or controlled
by any of the foregoing.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 6. IMPROVING EFFECTIVENESS OF TRIBAL CHILD SUPPORT ENFORCEMENT
AGENCIES BY PARITY OF ACCESS TO THE FEDERAL PARENT
LOCATOR SERVICE AND FEDERAL TAX REFUND OFFSETS.
(a) Access to Federal Parent Locator Service.--Section 453(c) of
the Social Security Act (42 U.S.C. 653(c)) is amended--
(1) by striking ``and'' at the end of paragraph (4);
(2) by striking the period at the end of paragraph (5) and
inserting ``; and''; and
(3) by adding at the end the following:
``(6) the child support enforcement agency of an Indian
tribe or tribal organization that is eligible for a grant under
section 455(f).''.
(b) Improving the Collection of Past-Due Child Support From Federal
Tax Refunds.--
(1) Amendment to the social security act.--Section 464 of
the Social Security Act (42 U.S.C. 664) is amended by adding at
the end the following:
``(d) Applicability to Indian Tribes and Tribal Organizations
Eligible for a Grant Under This Part.--This section, except for the
requirement to distribute amounts in accordance with section 457, shall
apply to an Indian tribe or tribal organization eligible for a grant
under section 455(f) in the same manner in which this section applies
to a State with a plan approved under this part.''.
(2) Amendment to the internal revenue code.--Subsection (c)
of section 6402 of the Internal Revenue Code of 1986 is amended
by adding at the end the following: ``For purposes of this
subsection, any reference to a State shall include a reference
to any Indian tribe or tribal organization described in section
464(d) of the Social Security Act.''.
SEC. 7. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF
DETERMINING UNDER THE ADOPTION CREDIT WHETHER A CHILD HAS
SPECIAL NEEDS.
(a) In General.--Section 23(d)(3) of the Internal Revenue Code of
1986 (defining child with special needs) is amended--
(1) in subparagraph (A), by inserting ``or Indian tribal
government'' after ``a State''; and
(2) in subparagraph (B), by inserting ``or Indian tribal
government'' after ``such State''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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