[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5048 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 5048
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 SENATE OF THE UNITED STATES
September 29, 2022
Ms. Cortez Masto (for herself, Mr. Wyden, and Mr. Schatz) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
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 ``Native American Tax Parity and
Relief Act of 2022''.
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, United States 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) Indian tribes face historic disadvantages in accessing
the underlying capital to build the necessary infrastructure
for job creation, and 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.--Section 7871(c) of the Internal Revenue Code of
1986 is amended to read as follows:
``(c) Special Rules for Tax-Exempt Bonds.--
``(1) In general.--In applying section 146 to bonds issued
by Indian Tribal Governments the Secretary shall annually--
``(A) establish a national bond volume cap based on
the greater of--
``(i) 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
``(ii) 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
``(B) under regulations prescribed by the
Secretary, allocate such national bond volume cap among
all Indian Tribal Governments seeking such an
allocation in a particular year.
``(2) Application of geographic restriction.--In the case
of national bond volume cap allocated under paragraph (1),
section 146(k)(1) shall not apply to the extent that such cap
is used with respect to financing for a facility located on
qualified Indian lands.
``(3) Restriction on financing of certain gaming
facilities.--No portion of the volume cap allocated under this
subsection may be used with respect to the financing of any
portion of a building in which class II or class III gaming (as
defined in section 4 of the Indian Gaming Regulatory Act) is
conducted or housed or any property actually used in the
conduct of such gaming.
``(4) Definitions and special rules.--For purposes of this
subsection--
``(A) Indian tribal government.--The term `Indian
Tribal Government' means the governing body of an
Indian Tribe, band, nation, or other organized group or
community, or of Alaska Natives, which is recognized as
eligible for the special programs and services provided
by the United States to Indians because of their status
as Indians, and also includes any agencies,
instrumentalities or political subdivisions thereof.
``(B) Intertribal consortiums, etc.--In any case in
which an Indian Tribal Government has authorized an
intertribal consortium, a Tribal organization, or an
Alaska Native regional or village corporation, as
defined in, or established pursuant to, the Alaska
Native Claims Settlement Act, to plan for, coordinate
or otherwise administer services, finances, functions,
or activities on its behalf under this subsection, the
authorized entity shall have the rights and
responsibilities of the authorizing Indian Tribal
Government only to the extent provided in the
Authorizing resolution.
``(C) Qualified indian lands.--The term `qualified
Indian lands' shall mean an Indian reservation as
defined in section 3(d) of the Indian Financing Act of
1974 (25 U.S.C. 1452(d)), including lands which are
within the jurisdictional area of an Oklahoma Indian
Tribe (as determined by the Secretary of the Interior)
and shall include lands outside a reservation where the
facility is to be placed in service in connection
with--
``(i) the active conduct of a trade or
business by an Indian Tribe on, contiguous to,
within reasonable proximity of, or with a
substantial connection to, an Indian
reservation or Alaska Native village, or
``(ii) infrastructure (including roads,
power lines, water systems, railroad spurs, and
communication facilities) serving an Indian
reservation or Alaska Native village.''.
(b) Conforming Amendment.--Subparagraph (B) of section 45(c)(9) of
the Internal Revenue Code of 1986 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.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued in calendar years beginning after the date
of the enactment of this Act.
SEC. 4. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE CHARITIES
FUNDED AND CONTROLLED BY OTHER GOVERNMENTAL FUNDERS AND
SPONSORS.
(a) In General.--Section 170(b)(1) of the Internal Revenue Code of
1986 is amended by adding at the end the following subparagraph:
``(I) Treatment of charities substantially funded
by indian tribal governments.--For purposes of
subparagraph (A)(vi), the term `governmental unit'
includes an Indian tribal government, 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, 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. 5. 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. 6. 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 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.
SEC. 7. INCLUSION OF INDIAN AREAS AS DIFFICULT DEVELOPMENT AREAS FOR
PURPOSES OF CERTAIN BUILDINGS.
(a) In General.--Subclause (I) of section 42(d)(5)(B)(iii) of the
Internal Revenue Code of 1986 is amended by inserting before the period
the following: ``, and any Indian area''.
(b) Indian Area.--Clause (iii) of section 42(d)(5)(B) of the
Internal Revenue Code of 1986 is amended by redesignating subclause
(II) as subclause (IV) and by inserting after subclause (I) the
following new subclauses:
``(II) Indian area.--For purposes
of subclause (I), the term `Indian
area' means any Indian area (as defined
in section 4(11) of the Native American
Housing Assistance and Self
Determination Act of 1996 (25 U.S.C.
4103(11))).
``(III) Special rule for buildings
in indian areas.--In the case of an
area which is a difficult development
area solely because it is an Indian
area, a building shall not be treated
as located in such area unless such
building is assisted or financed under
the Native American Housing Assistance
and Self Determination Act of 1996 (25
U.S.C. 4101 et seq.) or the project
sponsor is an Indian tribe (as defined
in section 45A(c)(6)), a tribally
designated housing entity (as defined
in section 4(22) of such Act (25 U.S.C.
4103(22))), or wholly owned or
controlled by such an Indian tribe or
tribally designated housing entity.''.
(c) Effective Date.--The amendments made by this section shall
apply to buildings placed in service after December 31, 2021.
SEC. 8. INDIAN EMPLOYMENT TAX CREDIT.
(a) Extension.--Section 45A of the Internal Revenue Code of 1986 is
amended by striking subsection (f).
(b) Modification of Determination of Amount of Credit.--Paragraph
(2) of section 45A(a) of the Internal Revenue Code of 1986 is amended
to read as follows:
``(2) the quotient of--
``(A) the sum of the qualified wages and qualified
employee health insurance costs which were paid or
incurred by the employer (or any predecessor) during
the two most recent calendar years ending before the
beginning of such taxable year, divided by
``(B) 2.''.
(c) Increased Limitation.--Section 45A(b)(3) of the Internal
Revenue Code of 1986 is amended by striking ``$20,000'' and inserting
``$30,000''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 9. NEW MARKETS TAX CREDIT FOR TRIBAL STATISTICAL AREAS.
(a) Additional Allocations for Tribal Statistical Areas.--Section
45D(f) of the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:
``(4) Additional allocations for tribal statistical
areas.--
``(A) In general.--In the case of each calendar
year after 2021, there is (in addition to any
limitation under any other paragraph of this
subsection) a new markets tax credit limitation of
$175,000,000 which shall be allocated by the Secretary
as provided in paragraph (2) except that such
limitation may only be allocated with respect to Tribal
Statistical Areas.
``(B) Carryover of unused tribal statistical area
limitation.--
``(i) In general.--If the credit limitation
under subparagraph (A) for any calendar year
exceeds the amount of such limitation allocated
by the Secretary for such calendar year, such
limitation for the succeeding calendar year
shall be increased by the amount of such
excess.
``(ii) Limitation on carryover.--No amount
of credit limitation may be carried under
clause (i) past the 5th calendar year following
the calendar year in which such amount of
credit limitation arose.
``(iii) Transfer of expired tribal
statistical area limitation to general
limitation.--In the case of any amount of
credit limitation which would (but for clause
(ii)) be carried under clause (i) to the 6th
calendar year following the calendar year in
which such amount of credit limitation arose,
the new market tax credit limitation under
paragraph (1) for such 6th calendar year shall
be increased by the amount of such credit
limitation.
``(C) Tribal statistical area.--For purposes of
this paragraph, the term `Tribal Statistical Area'
means--
``(i) any low-income community which is
located in any Tribal Census Tract, Oklahoma
Tribal Statistical Area, Tribal-Designated
Statistical Area, Alaska Native Village
Statistical Area, or Hawaiian Home Land, and
``(ii) any low-income community described
in subsection (e)(1)(B).''.
(b) Eligibility of Certain Businesses Serving Tribal Members.--
Section 45D(e)(1) of the Internal Revenue Code of 1986 is amended to
read as follows:
``(1) In general.--The term `low-income community' means
any area--
``(A) comprising a population census tract if--
``(i) the poverty rate for such tract is at
least 20 percent, or
``(ii)(I) in the case of a tract not
located within a metropolitan area, the median
family income for such tract does not exceed 80
percent of statewide median family income, or
``(II) in the case of a tract located within a
metropolitan area, the median family income for such
tract does not exceed 80 percent of the greater of
statewide median family income or the metropolitan area
median family income, or
``(B) which is used for a qualified active low-
income community business which--
``(i) services a significant population of
Tribal or Alaska Native Village members who are
residents of a low-income community described
in subsection (f)(5)(C)(i), and
``(ii) obtains a written statement from the
relevant Indian Tribal Government (within the
meaning of section 7871(c)) that documents the
eligibility of such qualified active low-income
community business with respect to the
requirement of clause (i).
Subparagraph (A)(ii) shall be applied using possession wide
median family income in the case of census tracts located
within a possession of the United States.''.
(c) Regulatory Authority.--Section 45D(i) of the Internal Revenue
Code of 1986 is amended by striking ``and'' at the end of paragraph
(5), by striking the period at the end of paragraph (6) and inserting
``, and'', and by adding at the end the following new paragraph:
``(7) which provide documentation requirements for the
written statement required under subsection (e)(1)(B)(ii), and
``(8) which provide procedures for identifying qualified
low-income community businesses which meet the requirements of
subsection (e)(1)(B)(i) (taking into account the location need
of such businesses, especially with businesses that serve
multiple tribal or Alaska Native Village communities.''.
(d) Effective Date.--The amendments made by this section shall
apply to new markets tax credit limitation determined for calendar
years after December 31, 2021.
SEC. 10. TRIBAL GENERAL WELFARE PROGRAMS CLARIFICATION.
(a) In General.--Section 1612(b) of the Social Security Act (42
U.S.C. 1382a(b)) is amended by striking ``; and'' at the end of
paragraph (25), by striking the period at the end of paragraph (26) and
inserting ``; and'', and by adding at the end the following new
paragraph:
``(27) any Indian general welfare benefit (as defined in
section 139E of the Internal Revenue Code of 1986).''.
(b) Exclusion From Resources.--Section 1613(a) of the Social
Security Act (42 U.S.C. 1382b(a)) is amended by striking ``; and'' at
the end of paragraph (16), by striking the period at the end of
paragraph (17) and inserting ``; and'', and by inserting after
paragraph (17) the following new paragraph:
``(18) for the 9-month period beginning after the month in
which received, any Indian general welfare benefit (within the
meaning of section 139E of the Internal Revenue Code of
1986).''.
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