On a half-billion dollar investment, the tax deferrals have enormous value. These incentives are found in Internal Revenue Code Section 45A. Utility companies discovered this law applies in Oklahoma where much of the state is designated as Indian country qualifying for the incentives. Several new co-generation power plants will be built in the state in the next two years. With abundant natural gas supplies available and efficient tax law, energy companies find themselves with the best of possibilities. However, the tax depreciation incentives apply to all tribes.
Indian country contains some of the largest reserves of natural gas available for exploration.
When the natural gas supplies are combined with acreage for construction controlled by tribes, opportunities for development appear. With proper development, the tribes could be in position to supply energy and provide an income stream to the tribe for years. Also, there could be steady, quality employment for tribal members. One obstacle to this growth is the local tribal government. Tribes have not been on the cutting edge marketing the tax incentives because no direct cash comes to the tribe.