To amend the Internal Revenue Code of 1986 to treat certain tribal benefits as earned income for purposes of the kiddie tax.

“(C) Treatment of certain amounts as earned income—For purposes of this subsection, each of the following amounts shall be treated as earned income of the child referred to in paragraph (1) to the extent included in the gross income of such child:

“(i) Distributions from qualified disability trusts—Any amount included in the gross income of such child under section 652 or 662 by reason of being a beneficiary of a qualified disability trust (as defined in section 642(b)(2)(C)(ii)).

“(ii) Certain Indian tribal payments—Any payment which is included in the gross income of such child and made by an Indian tribal government (as defined in section 139E(c)(1)), or from a trust of which the Indian tribal government is treated as the owner under subpart E of part I of subchapter J, to or for the benefit of such child if—

“(I) such child or a family member (within the meaning of section 267(c)(4)) is an enrolled member of the tribe with respect to such Indian tribal government, and

“(II) such payment is made by reason of such enrollment.

“(iii) Certain payments from Native corporations or Settlement Trusts—Any payment which is included in the gross income of such child and—

“(I) made by a Native corporation (as defined in section 646(h)(2)) to or for the benefit of such child if such child or a family member (within the meaning of section 267(c)(4)) has an equity interest in the Native corporation, or

“(II) made by a Settlement Trust (as defined in section 646(h)(4)) to or for the benefit of such child if such child or a family member (within the meaning of section 267(c)(4)) has a beneficial interest in such Settlement Trust.”