Section 1 Short title
This Act may be cited as the “Tribal Tax Empowerment and Jobs Act of 2018”.
Tribal Tax Empowerment and Jobs Act of 2018
A BILL
To amend the Internal Revenue Code of 1986 to provide for increased economic opportunities for Native American tribes, and for other purposes.
Sec. 2 Treatment of Indian Tribes as States with respect to certain excise taxes and bond issuances
In general— Section 7871 of the Internal Revenue Code of 1986 is amended by striking subsections (b), (c), and (e).
Conforming amendments—
Section 7871(a)(2) of such Code is amended by striking “subject to subsection (b),”.
Section 45(c)(9)(B) of such Code is amended by inserting “(as in effect before the date of the enactment of the Tribal Tax Empowerment and Jobs Act of 2018)” after “section 7871(c)(3)(E)(ii)”.
Effective date— The amendments made by this section shall apply to transactions after, and obligations issued in calendar years beginning after, the date of the enactment of this Act.
Sec. 3 Indian tribal governments permitted to be shareholders of s corporations
In general— Section 1361(c)(6) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subparagraph (A), by inserting “and” at the end of subparagraph (B), and by inserting after subparagraph (B) the following:
“(C) an Indian tribal government (as defined in section 7701(a)(40) and including any subdivision of such government and any agency or instrumentality of such government or subdivision),”
Effective date— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
Sec. 4 Interagency coordination
Not later than 1 year after the enactment of this section, the Secretary of the Interior and the Secretary of the Treasury shall coordinate to consult with Indian tribes and with the Securities and Exchange Commission to study, and collaborate to establish regulatory changes necessary to qualify an Indian tribe as an accredited investor for the purposes of sections 230.500 through 230.508 of title 17, Code of Federal Regulations (or successor regulations), consistent with the goals of promoting capital formation and ensuring qualifying Indian tribes have the ability to withstand investment loss, on a basis comparable to other legal entities that qualify as accredited investors who are not natural persons.
Sec. 5 Making permanent the Indian employment credit and depreciation rules for business property on Indian reservations
Indian employment credit—
In general— Section 45A of the Internal Revenue Code of 1986 is amended by striking subsection (f).
Effective date— The amendment made by this subsection shall apply to taxable years beginning after December 31, 2016.
Accelerated depreciation for business property on an Indian reservation—
In general— Section 168(j) of the Internal Revenue Code of 1986 is amended by striking paragraph (9).
Effective date— The amendment made by this subsection shall apply to property placed in service after December 31, 2017.
Sec. 6 Priority under new markets tax credit for qualified low-income community investments on Indian reservations
In general— Paragraph (2) of section 45D(f) of the Internal Revenue Code of 1986 is amended by striking “or” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, or”, and by adding at the end the following new subparagraph:
“(C) which intends to make qualified low-income community investments within a reservation, including any such entity established by a tribe or an economic enterprise which intends to make such investments within a reservation.”
Definitions— Section 45D(f) of such Code is amended by adding at the end the following:
“(4) Definitions—For purposes of subparagraph (C) of paragraph (2), the terms reservation, tribe, and economic enterprise shall have the same meanings given such terms under section 3 of the Indian Financing Act of 1974 (25 U.S.C. 1452).”
Effective date— The amendments made by this section shall apply to calendar years beginning after December 31, 2017.
Sec. 7 Low-income housing credit
Selection criteria under qualified allocation plans—
In general— Subparagraph (C) of section 42(m)(1) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of clause (ix), by striking the period at the end of clause (x) and inserting “, and”, and by adding at the end the following new clause:
“(xi) the affordable housing needs of individuals in the State who are members of Indian tribes (as defined in section 45A(c)(6)).”
Effective date— The amendments made by subsection (a) shall apply to allocations of credits under section 42 of such Code made after December 31, 2018.
Inclusion of Indian areas as difficult development areas for purposes of certain buildings—
In general— Subclause (I) of section 42(d)(5)(B)(iii) of such Code is amended by inserting before the period the following: “, and any Indian area”.
Indian area— Clause (iii) of section 42(d)(5)(B) of such Code is amended by redesignating subclause (II) as subclause (III) and by inserting after subclause (I) the following new subclause:
“(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)).”
Eligible buildings— Clause (iii) of section 42(d)(5)(B) of such Code, as amended by paragraph (2), is amended by adding at the end the following new subclause:
“(IV) 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.”
Effective date— The amendments made by this subsection shall apply to buildings placed in service after December 31, 2018.
Sec. 8 Recognizing Indian tribal governments for purposes of determining under the adoption credit whether a child has special needs
In general— Section 23(d)(3) of the Internal Revenue Code of 1986 (defining child with special needs) is amended—
in subparagraph (A), by inserting “or Indian tribal government (as defined in section 7701(a)(40) and including any subdivision of such government and any agency or instrumentality of such government or subdivision)” after “a State”; and
in subparagraph (B), by inserting “or Indian tribal government” after “such State”.
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
Sec. 9 Parity for Indian Health Service professionals
Exclusion from gross income for payments made under Indian Health Service loan repayment program—
In general— Section 108(f)(4) is amended by inserting “under section 108 of the Indian Health Care Improvement Act,” after “338I of such Act,”.
Clerical amendment— The heading for section 108(f)(4) is amended by striking “and certain” and inserting “, indian health service loan repayment program, and certain”.
Effective date— The amendments made by this section shall apply to amounts received in taxable years beginning after December 31, 2017.
Sec. 10 Opportunity Zones
Designation— Section 1400Z–1(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following:
“(4) Indian land—For purposes of subsection (a), a population census tract located on Indian Land is designated as a qualified opportunity zone.”
Indian land defined— Section 1400Z–1(c) of such Code is amended by adding at the end the following:
“(4) Indian land—The term Indian land shall have the same meaning as provided in section 2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 3501(2)).”
Number of designations— Section 1400Z–1(d) of such Code is amended by adding at the end the following:
“(3) Indian lands excluded—Indian land deemed to be a qualified opportunity zone by subsection (b)(4) shall not be taken into account for purposes of paragraphs (1) and (2).”
Effective date— The amendments made by this section shall apply with respect to Indian lands after the date of the enactment of this Act.