[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2022 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2022
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
June 11, 2025
Ms. Cortez Masto (for herself and Ms. Murkowski) 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tribal Tax and
Investment Reform Act of 2025''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Treatment of Indian tribes as States with respect to excise
taxes and bond issuance.
Sec. 4. Treatment of pension and employee benefit plans maintained by
Tribal Governments.
Sec. 5. Treatment of Tribal foundations and charities like charities
funded and controlled by other governmental
funders and sponsors.
Sec. 6. Improving effectiveness of Tribal child support enforcement
agencies.
Sec. 7. Recognizing Indian tribal governments for purposes of
determining under the adoption credit
whether a child has special needs.
Sec. 8. New markets tax credit for tribal area investments.
Sec. 9. Inclusion of Indian areas as difficult development areas for
purposes of certain buildings.
Sec. 10. Tribal general welfare and trust programs clarification.
Sec. 11. Indian employment tax credit.
Sec. 12. Exclusion from gross income for payments under Indian health
service loan repayment program.
Sec. 13. Exclusion of certain amounts received under Indian Health
Professions Scholarships Program.
SEC. 2. FINDINGS.
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) 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 EXCISE
TAXES AND BOND ISSUANCE.
(a) Repeal of Essential Governmental Function Requirements.--
Section 7871 of the Internal Revenue Code of 1986 is amended by
striking subsections (b) and (e) and redesignating subsections (c),
(d), and (f) as subsections (b), (c), and (d), respectively.
(b) Special Rules for Tax-Exempt Bonds.--
(1) In general.--
(A) Application of private activity bond rules.--
Subsection (b) of section 7871 of such Code, as
redesignated by subsection (a), is amended to read as
follows:
``(b) Special Rules for Tax-Exempt Bonds.--
``(1) Volume cap.--
``(A) In general.--In applying section 146 to bonds
issued by Indian Tribal Governments--
``(i) there shall be a national bond volume
cap for each calendar year equal to
$400,000,000, and
``(ii) the volume cap for any Indian Tribal
Government shall be the portion of such
national bond volume cap which is allocated by
the Secretary (under such regulations as the
Secretary may prescribe) to such Indian Tribal
Government.
``(B) Inflation adjustment.--In the case of a
calendar year after 2026, the $400,000,000 amount in
subparagraph (A)(i)shall be increased by an amount
equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting `calendar year
2025' for `calendar year 2016' in subparagraph
(A)(ii) thereof.
If any increase determined under the preceding sentence
is not a multiple of $100,000, such increase shall be
rounded to the nearest multiple of $100,000.
``(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 proceeds from an obligation issued
by an Indian Tribal Government (or subdivision thereof) under
section 103 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 (25
U.S.C. 2703)) 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 recognized governing body
of any Indian or Alaska Native tribe, band, nation,
pueblo, village, community, component band, or
component reservation, individually identified
(including parenthetically) pursuant to section 104 of
the Federally Recognized Indian Tribe List Act of 1994
(25 U.S.C. 5131).
``(B) Intertribal consortia, etc.--Under
regulations prescribed by the Secretary, an Indian
Tribal Government (or a partnership of Indian Tribal
Governments) may authorize an intertribal consortium,
an organization, or a Regional Corporation, Village
Corporation, Urban Corporation, or Group 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,
except that the authorized entity shall have the rights
and responsibilities of the authorizing Indian Tribal
Government (or Indian Tribal Governments) only to the
extent provided in the authorizing resolution.
``(C) Qualified indian lands.--The term `qualified
Indian lands' means--
``(i) Indian lands within the meaning of
section 29(j)(8) of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C.
3722b(j)(8)),
``(ii) land held in fee simple by an Indian
Tribal Government,
``(iii) any land located within a region
established pursuant to section 7(a) of the
Alaska Native Claims Settlement Act (43 U.S.C.
1606(a)),
``(iv) Hawai`ian Home Lands (as defined in
section 801 of the Native American Housing
Assistance and Self-Determination Act of 1996
(25 U.S.C. 4221)), and
``(v) under regulations prescribed by the
Secretary, lands 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 lands described in clause
(i), (ii), (iii), or (iv), or
``(II) infrastructure (including
roads, power lines, water systems,
railroad spurs, and communication
facilities) serving lands described in
clause (i), (ii), (iii), or (iv).''.
(B) Conforming amendments.--
(i) Section 7871(a) of such Code is
amended--
(I) in paragraph (2) by striking
``subject to subsection (b),'', and
(II) in paragraph (4) by striking
``subsection (c)'' and inserting
``subsection (b)''.
(ii) 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.''.
(2) Alaska native corporation economic development bonds.--
(A) In general.--Section 7871 of the Internal
Revenue Code of 1986, as amended by subsection (a), is
amended by inserting at the end the following new
subsection:
``(e) Alaska Native Corporation Economic Development Bonds.--
``(1) National limitation.--
``(A) In general.--There is a national Alaska
Native Corporation economic development bond limitation
for each calendar year. Such limitation shall be equal
to the amount $45,000,000.
``(B) Inflation adjustment.--In the case of a
calendar year after 2026, the $45,000,000 amount in
subparagraph (A) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting `calendar year
2025' for `calendar year 2016' in subparagraph
(A)(ii) thereof.
If any increase determined under the preceding sentence
is not a multiple of $100,000, such increase shall be
rounded to the nearest multiple of $100,000.
``(C) Allocation.--
``(i) In general.--The Secretary shall
allocate the national Alaska Native Corporation
economic development bond limitation among the
Alaska Native Corporations selected by the
Secretary, in consultation with the Secretary
of the Interior.
``(ii) Eligibility.--The Secretary shall
not make any allocation under clause (i) to an
Alaska Native Corporation unless such Alaska
Native corporation provides the Secretary with
a written certification that any project
undertaken using the proceeds of an Alaska
Native Corporation economic development bond
will promote the economic, social, or cultural
well-being of the corporation's shareholders.
``(2) Bonds treated as exempt from tax.--In the case of an
Alaska Native Corporation economic development bond--
``(A) such bond shall be treated for purposes of
this title in the same manner as if such bond were
issued by a State,
``(B) the Alaska Native Corporation issuing such
bond shall be treated as a State for purposes of
section 141, and
``(C) section 146 shall not apply.
``(3) Alaska native corporation economic development
bond.--
``(A) In general.--For purposes of this section,
the term `Alaska Native Corporation economic
development bond' means any bond issued by an Alaska
Native Corporation--
``(i) the interest on which would be exempt
from tax under section 103 if issued by a State
or local government,
``(ii) substantially all of the net
proceeds of which are used--
``(I) with respect to facilities on
land located within a region
established pursuant to section 7(a) of
the Alaska Native Claims Settlement Act
(43 U.S.C. 1606(a)), or
``(II) to provide facilities within
Alaska or services to residents of
Alaska,
``(iii) none of the net proceeds of which
are used for any project or activity if the
proceeds of a bond to which subsection (b)
applies has also been used for such project or
activity, and
``(iv) which is designated by the Alaska
Native Corporation as an Alaska Native
Corporation economic development bond for
purposes of this subsection.
``(B) Exceptions.--Such term shall not include any
bond issued as part of an issue if any portion of the
proceeds of such issue are used to finance--
``(i) 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 other property
actually used in the conduct of such gaming, or
``(ii) any portion of the proceeds of such
issue is to be used to provide (including the
provision of land for) any private or
commercial golf course, country club, massage
parlor, hot tub facility, suntan facility,
racetrack or other facility used for gambling,
or any store the principal business of which is
the sale of alcoholic beverages for consumption
off premises.
``(C) Limitation on amount of bonds designated.--
The maximum aggregate face amount of bonds which may be
designated by any Alaska Native Corporation under
subparagraph (A) shall not exceed the amount of
national Alaska Native Corporation economic development
bond limitation allocated to such corporation under
paragraph (1).
``(4) Alaska native corporation.--For purposes of this
subsection, the term `Alaska Native Corporation' means any
Regional Corporation, any Village Corporation, any Urban
Corporation, and any Group Corporation (as such terms are
defined in section 3 of the Alaska Native Claims Settlement
Act).''.
(B) Termination of tribal economic development
bonds.--Section 7871(d)(3), as redesignated by
subsection (a), is amended by adding at the end the
following new subparagraph:
``(D) Termination.--No bond which is issued after
December 31, 2028, may be designated as a tribal
economic bond under subparagraph (A).''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to obligations
issued in calendar years beginning after the date of the
enactment of this Act.
(2) Excise taxes.--The amendments made by subsections (a)
and (b)(1)(B)(i)(I) shall take effect on and after the first
day of the first calendar quarter beginning more than 60 days
after the date of the enactment of this Act.
SEC. 4. TREATMENT OF PENSION AND EMPLOYEE BENEFIT PLANS MAINTAINED BY
TRIBAL GOVERNMENTS.
(a) Treatment of Plans.--
(1) Qualified public safety employee.--Section
72(t)(10)(B)(i) 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 tribal government''; and
(B) striking ``such State or political
subdivision'' and inserting ``such State, political
subdivision, or Indian tribal government''.
(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, 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) 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, 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,'' after ``political
subdivision thereof,''.
(4) 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, 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) shall be
treated as if established by an eligible employer under subsection
(e)(1)(A). A plan described in the preceding sentence may, at the
election of the employer, continue to be maintained without regard to
the preceding sentence or be amended if necessary to be maintained in
compliance with this section.''.
(5) Long-term, part-time workers.--Section 401(k)(15)(C) of
such Code is amended to read as follows:
``(C) Application of standards to certain employees
and plans.--The provisions of paragraph (2)(D)(ii)
shall not apply to--
``(i) employees described in section
410(b)(3), and
``(ii) a governmental plan.''.
(b) Enforcement Moratorium Related to Pension Protection Act of
2006.--
(1) In general.--An Indian tribal government, an agency,
instrumentality, or subdivision of an Indian tribal government,
and an entity established under Federal, State, or Tribal law
which is wholly owned or controlled by any of the foregoing,
shall not be subject to a Federal agency enforcement action
based solely on the amendments made by the Pension Protection
Act of 2006 to the Internal Revenue Code of 1986 or Employee
Retirement Income and Security Act of 1974 with respect to any
period prior to the publication of regulations with respect to
such amendments.
(2) Indian tribal government.--For purposes of this
subsection, the term ``Indian tribal government'' has the
meaning given such term in section 7701(a)(40) of the Internal
Revenue Code of 1986.
(3) Regulatory guidance.--The Secretary of the Treasury (or
the Secretary's delegate) and the Secretary of Labor shall, in
consultation with the Tribal Advisory Committee established
pursuant to section 3 of the Tribal General Welfare Exclusion
Act of 2014 and Indian tribal governments and relevant
governmental agencies, shall issue such regulations or other
guidance as may be necessary to carry out this subsection.
(c) Uniform Protections and Fiduciary Standards for Tribal Plans.--
(1) In general.--Chapter 77 of such Code is amended by
adding at the end the following:
``SEC. 7531. UNIFORM PROTECTIONS AND FIDUCIARY STANDARDS FOR TRIBAL
PENSION PLANS.
``(a) In General.--A Tribal pension plan shall be subject to the
uniform protections and fiduciary standards for Tribal pension plans.
``(b) Personal Liability.--
``(1) In general.--Any person who is a fiduciary with
respect to a Tribal pension plan who breaches any of the
responsibilities, obligations, or duties imposed upon
fiduciaries by the uniform protection and fiduciary standards
for Tribal pension plans, shall be personally liable to make
good to such plan any losses to the plan resulting from each
such breach, and to restore to such plan any profits of such
fiduciary which have been made through use of assets of the
plan by the fiduciary, and shall be subject to such other
equitable or remedial relief as the court may deem appropriate,
including removal of such fiduciary.
``(2) No liability for prior breach.--No fiduciary shall be
liable with respect to a breach of fiduciary duty under this
section if such breach was committed before the fiduciary
became a fiduciary or after the fiduciary ceased to be a
fiduciary.
``(c) Nondiscrimination.--
``(1) No interference with protected rights.--It shall be
unlawful for any person to discharge, fine, suspend, expel,
discipline, or discriminate against a participant or
beneficiary for exercising any right to which the participant
or beneficiary is entitled under the provisions of a Tribal
pension plan or under the uniform protection and fiduciary
standards for Tribal pension plans, or for the purpose of
interfering with the attainment of any right to which such
participant or beneficiary may become entitled under such plan
or the uniform protection and fiduciary standards for Tribal
pension plans.
``(2) Nondiscrimination.--Contributions or benefits
provided under a Tribal pension plan shall not discriminate in
favor of highly compensated employees (within the meaning of
section 414(q)).
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Tribal pension plan.--The term `Tribal pension plan'
means any qualified employer retirement plan (as defined in
section 72(d)(1)(G)) which--
``(A) is a governmental plan (as defined in section
414(d)),
``(B) has at least 500 active participants, and
``(C) is established or maintained for the
employees of 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.
``(2) Uniform protection and fiduciary standards for tribal
pension plans.--The term `uniform protections and fiduciary
standards for Tribal pension plans' means that, in connection
with a fiduciary's duties with respect to a Tribal pension
plan, the fiduciary shall discharge those duties--
``(A) solely in the interest of the participants
and beneficiaries,
``(B) for the exclusive purpose of providing
benefits to participants and beneficiaries,
``(C) to defray reasonable expenses of
administering the plan,
``(D) with the care, skill, prudence, and diligence
under the circumstances then prevailing that a prudent
person acting in a like capacity and familiar with such
matters would use in the conduct of an enterprise of a
like character and with like aims,
``(E) by diversifying the investments of the plan
so as to minimize the risk of large losses, unless
under the circumstances it is clearly prudent not to do
so, and
``(F) in accordance with the documents and
instruments governing the plan insofar as such
documents and instruments are consistent with the
requirements of the preceding subparagraphs.
``(3) Control over assets by participant or beneficiary.--
In the case of a Tribal pension plan which provides for
individual accounts and permits a participant or beneficiary to
exercise control over the assets in their account, if a
participant or beneficiary exercises control over the assets in
their account--
``(A) such participant or beneficiary shall not be
deemed to be a fiduciary by reason of such exercise,
and
``(B) no person who is otherwise a fiduciary shall
be liable under this section for any loss, or by reason
of any breach, which results from such participant's or
beneficiary's exercise of control.
``(e) Notice Requirements.--The plan administrator for any Tribal
pension plan shall cause to be furnished to each participant covered
under the plan a summary plan description. The summary plan description
and any notice of material modifications shall be provided or made
available to participants within a reasonable period following the
effective date of a participant's coverage or the effective date of
material changes to the plan, as applicable. The summary plan
description shall--
``(1) be written in a manner calculated to be understood by
the average plan participant,
``(2) be sufficiently accurate and comprehensive to
reasonably apprise such participants and beneficiaries of their
rights and obligations under the plan, and
``(3) specify any material modification in the terms to the
plan made after the previous summary plan description.
``(f) Persons Empowered To Bring a Civil Action.--In the case of a
Tribal pension plan, a civil action may be brought--
``(1) by a participant or beneficiary to recover benefits
due under the terms of the plan, to enforce rights under the
terms of the plan, or to clarify rights to future benefits
under the terms of the plan,
``(2) by a participant, beneficiary, or fiduciary for
relief for any loss for which a fiduciary is personally liable
under this section, and
``(3) by a participant, beneficiary, or fiduciary--
``(A) to enjoin any act or practice which violates
any provision of the uniform protection and protections
and fiduciary standards for Tribal pension plans, or
``(B) to obtain other appropriate equitable
relief--
``(i) to redress such violations, or
``(ii) to enforce any provisions of the
uniform protections and fiduciary standards for
Tribal pension plans or the terms of the plan.
``(g) Status of Tribal Pension Plan as Entity.--A Tribal pension
plan may sue or be sued under this section as an entity. Service of
summons, subpoena, or other legal process of a court upon a trustee or
an administrator of a Tribal pension plan in such capacity shall
constitute service upon the Tribal pension plan. Any money judgment
under this section against a Tribal pension plan shall be enforceable
only against the plan as an entity and shall not be enforceable against
any other person or entity.
``(h) Jurisdiction.--Enforcement actions related to the uniform
protections and fiduciary standards for Tribal pension plans shall be
in the applicable Tribal court unless the Indian tribal government has
opted to limit Tribal court jurisdiction for such actions in favor of
Federal court enforcement. In the absence of an established Tribal
court, or for Indian tribal governments who have elected to limit their
Tribal court's jurisdiction to exclude claims for enforcing the uniform
protections and fiduciary standards for Tribal pension plans, a
participant or beneficiary may seek enforcement in the district court
of the United States for the district where the plan has its principal
office, or in the United States District for the District of Columbia.
When applicable, the district courts of the United States shall have
jurisdiction without respect to the amount in controversy or the
citizenship of the parties.
``(i) Attorney's Fees and Costs.--The court, in its discretion, may
allow an award of reasonable attorney's fees and costs to a
participant, beneficiary, or fiduciary who prevails in an action to
enforce the uniform protections and fiduciary standards for Tribal
pension plans.
``(j) Coordination With Other Tribal Laws and Protections.--Nothing
in this section shall preempt or otherwise prevent an Indian Tribe from
adopting additional laws and protections not inconsistent with this
section.
``(k) Regulations.--The Secretary, in consultation with the Tribal
Advisory Committee established pursuant to section 3 of the Tribal
General Welfare Exclusion Act of 2014 and Indian tribal governments and
relevant governmental agencies, shall issue such regulations or other
guidance as may be necessary to carry out the provisions of this
section, including regulations or guidance with respect to the
enforcement of such standards.''.
(2) Clerical amendment.--The table of sections for chapter
77 of such Code is amended by adding at the end the following
new item:
``Sec. 7531. Uniform protections and fiduciary standards for Tribal
pension plans.''.
(d) Conforming Amendment.--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, 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.''.
(e) Effective Date.--The amendments made by this section shall
apply to years beginning after the date of the enactment of this Act.
(f) Transition Provisions.--The Secretary of the Treasury (or the
Secretary's delegate) shall, in consultation with the Tribal Advisory
Committee established under section 3 of the Tribal General Welfare
Exclusion Act of 2014 (26 U.S.C. 139E note), and in consultation with
Indian tribal governments, develop guidance on the transition of plans
to meet requirements added or changed by the amendments made by this
section, including publication of transition relief if appropriate. The
Secretary of the Treasury (or the Secretary's delegate) is authorized
to extend deadlines imposed by the Internal Revenue Code of 1986 to
reflect any such transition relief (and to coordinate such transition
relief with relevant governmental agencies) as well as time for plan
sponsors to adopt amendments and implement required changes.
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, 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. 6. IMPROVING EFFECTIVENESS OF TRIBAL CHILD SUPPORT ENFORCEMENT
AGENCIES.
(a) 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.''.
(b) 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.
SEC. 8. NEW MARKETS TAX CREDIT FOR TRIBAL AREA INVESTMENTS.
(a) Additional Allocations for Tribal Area.--
(1) In general.--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 area investments.--
``(A) In general.--In the case of each calendar
year after 2025, there is (in addition to any
limitation under any other paragraph of this
subsection) a new markets tribal area tax credit
limitation of $175,000,000 which shall be allocated by
the Secretary as provided in paragraph (2) except
that--
``(i) such allocation shall only be
allocated with respect to qualified tribal area
investments, and
``(ii) in addition to the priorities
described in paragraph (2), the Secretary may
give priority to any entity with a record of
having successfully provided capital or
technical assistance in tribal statistical
areas.
``(B) Carryover of unused new markets tribal area
tax credit limitation.--
``(i) In general.--If the new markets
tribal area tax 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 new markets tribal area tax credit
limitation may be carried under clause (i) past
the 5th calendar year following the calendar
year in which such amount of new markets tribal
area tax credit limitation arose.
``(iii) Transfer of expired new markets
tribal area tax credit limitation to general
limitation.--In the case of any amount of new
markets tribal area tax 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 new
markets tribal area credit limitation arose,
the new markets tax credit limitation under
paragraph (1) for such 6th calendar year shall
be increased by the amount of such new markets
tribal area tax credit limitation.
``(C) Allocations restricted to qualified tribal
area investments.--For purposes of this section--
``(i) subsection (b)(2) shall be applied
separately with respect to the new markets tax
credit limitation under paragraph (1) and the
new market tribal area tax credit limitation
under this paragraph,
``(ii) any designation under
subsection(b)(1)(C) shall indicate the source
and amount of the limitation to which such
designation relates, and
``(iii) in the case of any investment which
is designated under subsection (b)(1)(C) using
amounts of the new market tribal area tax
credit limitation allocated under this
paragraph--
``(I) such investment shall not be
treated as a qualified equity
investment unless substantially all of
the cash described in subsection
(b)(1)(A) is used to make qualified
tribal area investments, and
``(II) subsection (g)(3)(B) shall
be applied by substituting `subsection
(f)(4)(C)(iii)(I)' for `subsection
(b)(3)(B)'.
``(D) Qualified tribal area investments.--For
purposes of this paragraph, the term `qualified tribal
area investment' means--
``(i) any capital or equity investment in,
or loan to, any qualified active tribal
community business,
``(ii) the purchase from another community
development entity of any loan made by such
entity which is a qualified tribal area
investment,
``(iii) financial counseling and other
services specified in regulations prescribed by
the Secretary to businesses located in, and
residents of, tribal statistical areas, and
``(iv) any equity investment in, or loan
to, any qualified community development entity
if substantially all of the proceeds of such
investment or loan are used by such qualified
community development entity to make qualified
tribal area investments.
``(E) Qualified active tribal community business.--
For purposes of this paragraph--
``(i) In general.--The term `qualified
active tribal community business' has the
meaning which would be given the term
`qualified active low-income community
business' under subsection (d)(2) if `tribal
statistical area' were substituted for `low-
income community' each place it appears
therein.
``(ii) Inclusion of certain qualified
active low-income community businesses which
serve tribal areas.--The term `qualified active
tribal community business' includes any
qualified active low-income community business
which--
``(I) provides good or services to
a significant population of Tribal,
Alaska Native village, or Native
Hawai`ian community members, who are
residents of a tribal statistical area,
and
``(II) obtains a written statement
from one or more relevant Indian tribal
governments (as defined in section
7871(b)(4)(A)) (or, in the case of
Native Hawai`ian community members, the
Department of Hawai`ian Home Lands, as
defined in section 801 of the Native
American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C.
4221)) that documents the eligibility
of such qualified active low-income
community business with respect to the
requirement of subclause (I).
``(F) Tribal statistical area.--For purposes of
this paragraph, the term `tribal statistical area'
means any low-income community which is located in any
area determined by the Secretary, after consultation
with the Bureau of the Census, as a Tribal Census
Tract, Oklahoma Tribal Statistical Area, Tribal-
Designated Statistical Area, Alaska Native Village
Statistical Area, or Hawai`ian Home Lands.''.
(2) Effective date.--The amendment made by this subsection
shall apply to new markets tribal area tax credit limitation
determined for calendar years after December 31, 2025.
(b) Educational and Technical Assistance Related to Qualified
Tribal Area Investments.--Section 45D of such Code is amended by
redesignating subsection (i) as subsection (j) and by inserting after
subsection (h) the following new subsection:
``(i) Education and Technical Assistance Related to Investments
With Respect to Tribal Statistical Areas.--Not later than 180 days
after the date of the enactment of this subsection, the Secretary,
after consultation with the Office of Tribal and Native Affairs, the
Community Development Financial Institutions Fund, and other
appropriate Federal agencies, shall establish a program to provide
educational and technical assistance to qualified community development
entities with respect to--
``(1) applications for, and the appropriate use of--
``(A) new markets tribal area tax credit
limitation, and
``(B) new markets tax credit limitation with
respect to investments with respect to tribal
statistical areas, and
``(2) in the case of any qualified community development
entity which has been allocated limitation described in
subparagraph (A) or (B) of paragraph (1), technical issues
specifically associated with investments with respect to tribal
statistical areas.''.
SEC. 9. 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 such Code
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, 2025.
SEC. 10. TRIBAL GENERAL WELFARE AND TRUST 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 a semicolon, and by inserting after
paragraph (17) the following new paragraphs:
``(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);
and
``(19) any grantor trust established by an Indian tribe for
the benefit of Indians and for which the Indian tribe is the
grantor (within the meaning of subpart E of part 1 of
subchapter J of chapter 1 of the Internal Revenue Code of
1986).''.
SEC. 11. 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 such Code 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 such Code 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, 2025.
SEC. 12. EXCLUSION FROM GROSS INCOME FOR PAYMENTS UNDER INDIAN HEALTH
SERVICE LOAN REPAYMENT PROGRAM.
(a) In General.--Paragraph (4) of section 108(f) of the Internal
Revenue Code of 1986 is amended by inserting ``under section 108 of the
Indian Health Care Improvement Act,'' after ``338I of such Act,''.
(b) Clerical Amendment.--The heading for section 108(f)(4) of such
Code is amended by inserting ``, indian health service loan repayment
program,'' before ``and certain''.
(c) Effective Date.--The amendments made by this section shall
apply to payments made after the date of the enactment of this Act.
SEC. 13. EXCLUSION OF CERTAIN AMOUNTS RECEIVED UNDER INDIAN HEALTH
PROFESSIONS SCHOLARSHIPS PROGRAM.
(a) In General.--Paragraph (2) of section 117(c) of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end of
subparagraph (B), by striking the period at the end of subparagraph (C)
and inserting ``, or'', and by adding at the end the following new
subparagraph:
``(D) the Indian Health Professions Scholarships
Program under section 104 of the Indian Health Care
Improvement Act.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to amounts received in taxable years beginning after December 31,
2025.
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