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Tribal Tax and Investment Reform Act of 2021
12/31/2022, 4:59 AM
Summary of Bill HR 4054
One key provision of the bill is the establishment of a Tribal Tax Task Force, which would be responsible for studying and making recommendations on how to improve the tax treatment of tribal governments and businesses. The task force would also work to identify barriers to investment on tribal lands and propose solutions to encourage economic growth.
Additionally, the bill includes provisions to streamline the process for tribes to enter into tax agreements with state and local governments, as well as provisions to clarify the tax treatment of certain tribal government programs and services. These changes are intended to provide tribes with greater certainty and flexibility in managing their tax affairs. Overall, the Tribal Tax and Investment Reform Act of 2021 seeks to empower tribal governments and businesses to make informed decisions about taxation and investment, ultimately leading to greater economic prosperity and self-determination for Native American communities.
Congressional Summary of HR 4054
Tribal Tax and Investment Reform Act of 2021
This bill treats Indian tribal governments as states for purposes of the annual allocation of the tax-exempt bond volume cap. It also repeals provisions that limit an Indian tribal government's eligibility to issue tax-exempt bonds or to be exempt from specified excise taxes to transactions involving the exercise of an essential government function customarily performed by state and local governments.
The bill (1) treats employee benefit or pension plans maintained by Indian tribes and domestic relations orders issued pursuant to tribal law in the same manner as plans maintained by states and domestic relations orders issued pursuant to state law; and (2) treats tribal charities and foundations in the same manner as charities and foundations funded and controlled by other governmental entities for purposes of the tax-exempt status of, and deduction for contributions to, such organizations.
The bill gives Indian tribes or tribal organizations access to the Federal Parent Locator Service if they are eligible for a grant to operate a child support enforcement program. It makes those tribes and tribal organizations eligible to participate in the program that collects past-due support from individual tax refunds.
An Indian tribal government may determine whether a child has special needs for the purpose of the tax credit for the adoption of a child with special needs.
