[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8318 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                                H. R. 8318

   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

                              May 8, 2024

 Ms. Moore of Wisconsin (for herself, Mr. Schweikert, Mr. Kildee, Mr. 
   Kelly of Pennsylvania, Ms. DelBene, Mr. Cole, 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 the Workforce, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Tribal Tax and 
Investment Reform Act of 2024''.
    (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.

    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) 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.--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) 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 amount determined under section 
                        146(d)(1)(A), determined by substituting `the 
                        national Tribal population estimates supplied 
                        annually by the Secretary of the Interior, as 
                        measured by the total number of enrolled Tribal 
                        citizens of each tribe'for `State population', 
                        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 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 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, 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) land held by incorporated Native 
                        groups, regional corporations, and village 
                        corporations under the provisions of the Alaska 
                        Native Claims Settlement Act (43 U.S.C. 1601 et 
                        seq.),
                            ``(iv) Hawaiian 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).''.
    (c) Conforming Amendments.--
            (1) Section 7871(a) of such Code is amended--
                    (A) in paragraph (2) by striking ``subject to 
                subsection (b),'', and
                    (B) in paragraph (4) by striking ``subsection (c)'' 
                and inserting ``subsection (b)''.
            (2) 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) Tax-exempt bonds.--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 this section with 
        respect to any excise tax referred to in section 7871(a)(2) of 
        such Code 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) 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 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). Such plans may be maintained in compliance with section 457 
or may be converted to or merged into a section 401(k) cash or deferred 
arrangement maintained by such government, agency, instrumentality, 
subdivision, or entity.''.
            (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 within the 
                        meaning of section 414(d)).''.
    (b) Enforcement Moratorium Related to Pension Protection Act of 
2006.--
            (1) In general.--No 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, 
        shall be subject to a Federal agency enforcement action based 
        on changes under the Internal Revenue Code of 1986 or Employee 
        Retirement Income and Security Act of 1974 enacted under the 
        Pension Protection Act of 2006, for any periods prior to the 
        publication of agency regulations thereunder.
            (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 shall work with the 
        Tribal Advisory Committee established pursuant to section 3 of 
        the Tribal General Welfare Exclusion Act of 2014, and in 
        consultation with Indian tribal governments and relevant 
        governmental agencies, to develop regulatory guidance under 
        this section.
    (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 i