Tribal Economic Assistance Act of 2017

Summary: Tribal Economic Assistance Act of 2017  This bill amends the Internal Revenue Code to extend and modify several tax provisions relating to Indian reservations.  The bill:   repeals a provision that limits an Indian tribal government's eligibility for certain excise tax exemptions to transactions involving the exercise of an essential government function;  makes permanent the special depreciation rules for property used predominantly within an Indian reservation;  makes permanent the Indian employment tax credit;  requires the Department of the Treasury to give priority to qualified low-income community investments on Indian reservations when allocating new markets tax credits; and allows qualified school construction bonds allocated for schools funded by the Bureau of Indian Affairs to be used for reasonable and necessary predevelopment costs directly associated with the construction, rehabilitation, or repair of a school.   The bill also amends the Indian Self-Determination and Education Assistance Act to establish a federal escrow account to carry out a qualified Indian school construction bond program for schools funded by the Bureau of Indian Affairs. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tribal Economic Assistance Act of 
2017''.

SEC. 2. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO BOND 
              ISSUANCE.

    (a) Repeal of Essential Governmental Function Requirement.--Section 
7871 of the Internal Revenue Code of 1986 is amended by striking 
subsections (b) and (e).
    (b) 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. MAKING PERMANENT THE INDIAN EMPLOYMENT CREDIT AND DEPRECATION 
              RULES FOR BUSINESS PROPERTY ON INDIAN RESERVATIONS.

    (a) Indian Employment Credit.--
            (1) In general.--Section 45A of the Internal Revenue Code 
        of 1986 is amended by striking subsection (f).
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after December 31, 2016.
    (b) Accelerated Depreciation for Business Property on an Indian 
Reservation.--
            (1) In general.--Section 168(j) of the Internal Revenue 
        Code of 1986 is amended by striking paragraph (9).
    (c) Effective Date.--The amendment made by this subsection shall 
apply to property placed in service after December 31, 2016.

SEC. 4. PRIORITY UNDER NEW MARKETS TAX CREDIT FOR QUALIFIED LOW-INCOME 
              COMMUNITY INVESTMENTS ON INDIAN RESERVATIONS.

    (a) In General.--Subsection (f) of section 45D of the Internal 
Revenue Code of 1986 is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end;
                    (B) in subparagraph (B), by striking the period and 
                inserting ``, or''; and
                    (C) 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.''; and
            (2) by adding at the end the following new paragraph:
            ``(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).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2017.

SEC. 5. AUTHORIZATION TO ESTABLISH QUALIFIED INDIAN SCHOOL CONSTRUCTION 
              BOND ESCROW ACCOUNT.

    (a) Authorization To Establish Qualified Indian School Construction 
Bond Escrow Account.--
            (1) In general.--Part B of title II of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5351) is 
        amended by adding at the end the following:

``SEC. 204A. AUTHORIZATION TO ESTABLISH QUALIFIED INDIAN SCHOOL 
              CONSTRUCTION BOND ESCROW ACCOUNT.

    ``(a) Definitions.--In this section:
            ``(1) Federal escrow account.--The term `Federal escrow 
        account' means the qualified Indian school construction bond 
        escrow account established under subsection (b).
            ``(2) Qualified indian school construction bond.--The term 
        `qualified Indian school construction bond' means a bond for 
        which the Secretary of the Interior has provided an allocation 
        pursuant to the authority provided to the Secretary under 
        section 54F(d)(4) of the Internal Revenue Code.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
    ``(b) In General.--Pursuant to the authority granted under section 
54F(d)(4) of the Internal Revenue Code of 1986, the Secretary shall 
establish a Federal qualified Indian school construction bond escrow 
account for the purpose of implementing such section.
    ``(c) Use of Escrow Account.--The Secretary shall use amounts 
available under the Federal escrow account to carry out a qualified 
Indian school construction bond program for schools funded by the 
Bureau of Indian Affairs, through which--
            ``(1) the Secretary shall approve qualified school 
        construction bonds to the extent that amounts are available in 
        the Federal escrow account to support the bonds pursuant to 
        paragraph (2);
            ``(2) upon the Secretary's approval of a request for a 
        qualified school construction bond, the Secretary shall 
        deposit, from amounts available in the Federal escrow account, 
        the amount described in paragraph (4) in an individual bond 
        escrow account that shall be managed for such qualified school 
        construction bond;
            ``(3) the funds for the individual bond escrow account 
        shall be held by the Federal Government or in an insured 
        depository institution, as defined in section 3 of the Federal 
        Deposit Insurance Act (12 U.S.C. 1813), and shall be invested 
        in appropriate Treasury securities; and
            ``(4) the amount of the funds provided for the individual 
        bond escrow account shall be an amount sufficient to repay the 
        face value of the bond in a 15-year period, based on the 
        investment required under paragraph (3).
    ``(d) Transfer to Escrow Account.--
            ``(1) In general.--The Secretary shall deposit in the 
        Federal escrow account such sums as are made available to 
        implement this section and section 54F(d)(4) of the Internal 
        Revenue Code of 1986.
            ``(2) Other funds.--The Secretary may accept and deposit in 
        the Federal escrow account amounts received to carry out this 
        section from any other source, including Federal agencies, non-
        Federal public agencies, Indian Tribes, nonprofit 
        organizations, and private sector entities.''.
            (2) Conforming amendments.--Section 204 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5351) is 
        amended by striking ``this part B'' each place the term appears 
        and inserting ``this section''.
    (b) Use of Bonds for Reasonable and Necessary Preconstruction 
Costs.--Section 54F(d)(4) of the Internal Revenue Code of 1986 is 
amended by striking ``Affairs.'' and inserting ``Affairs, which may 
include paying the reasonable and necessary predevelopment costs 
directly associated with such construction, rehabilitation, or 
repair.''.