[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 in sec