I 
114TH CONGRESS 
2D SESSION 
H. R. 4943 
To amend the Internal Revenue Code of 1986 to treat Indian tribal govern-
ments in the same manner as State governments for certain Federal 
tax purposes, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 14, 2016 
Mr. KIND (for himself and Ms. JENKINS of Kansas) introduced the following 
bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committee on Education and the Workforce, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to treat Indian 
tribal governments in the same manner as State govern-
ments for certain Federal tax purposes, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tribal Tax and Invest-
ment Reform Act of 2016’’. 
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SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) There is a unique Federal legal and political 
relationship between the United States and Indian 
tribes. 
(2) Indian tribes have the responsibility and au-
thority to provide governmental programs and serv-
ices to tribal citizens, develop tribal economies, and 
build community infrastructure to ensure that In-
dian reservation lands serve as livable, permanent 
homes. 
(3) The United States Constitution, U.S. Fed-
eral Court decisions, Executive orders, and numer-
ous other Federal laws and regulations recognize 
that Indian tribes are governments, retaining the in-
herent authority to tax and operate as other govern-
ments, including (inter alia) financing projects with 
government bonds and maintaining eligibility for 
general tax exemptions via their government status. 
(4) Codifying tax parity with respect to tribal 
governments is consistent with Federal treaties rec-
ognizing the sovereignty of tribal governments. 
(5) That Indian tribes face historic disadvan-
tages in accessing the underlying capital to build the 
necessary infrastructure for job creation, and that 
certain statutory restrictions on tribal governance 
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further inhibit tribes’ ability to develop strong gov-
ernance and economies. 
(6) Indian tribes are sometimes excluded from 
the Internal Revenue Code of 1986 in key provisions 
which results in unfair tax treatment for tribal citi-
zens or unequal enforcement authority for tribal en-
forcement agencies. 
(7) Congress is vested with the authority to 
regulate commerce with Indian tribes, and hereby 
exercises that authority in a manner which furthers 
tribal self-governance, and in doing so, further af-
firms the United States government-to-government 
relationship with Indian tribes. 
SEC. 3. TREATMENT OF INDIAN TRIBES AS STATES WITH 
RESPECT TO BOND ISSUANCE. 
(a) IN GENERAL.—Subsection (c) of section 7871 of 
the Internal Revenue Code of 1986 (relating to Indian 
tribal governments treated as States for certain purposes) 
is amended to read as follows: 
‘‘(c) SPECIAL RULES FOR TAX-EXEMPT BONDS.—In 
applying section 146 to bonds issued by Indian tribal gov-
ernments (or subdivisions thereof) the Secretary of the 
Treasury shall annually— 
‘‘(1) establish a national bond volume cap based 
on the greater of— 
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‘‘(A) the State population formula ap-
proach in section 146(d)(1)(A) (using national 
tribal population estimates supplied annually by 
the Department of the Interior in consultation 
with the Census Bureau), and 
‘‘(B) the minimum State ceiling amount in 
section 146(d)(1)(B) (as adjusted in accordance 
with the cost of living provision in section 
146(d)(2)), and 
‘‘(2) allocate such national bond volume cap 
among all Indian tribal governments seeking such an 
allocation in a particular year under regulations pre-
scribed by the Secretary.’’. 
(b) REPEAL OF ESSENTIAL GOVERNMENTAL FUNC-
TION REQUIREMENTS.—Section 7871 of such Code is fur-
ther amended by striking subsections (b) and (e). 
(c) EFFECTIVE DATE.— 
(1) SUBSECTION (a).—The amendment made 
by subsection (a) shall apply to obligations issued in 
calendar years beginning after the date of the enact-
ment of this Act. 
(2) SUBSECTION (b).—The repeals made by 
subsection (b) shall apply to transactions after, and 
obligations issued in calendar years beginning after, 
the date of the enactment of this Act. 
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SEC. 4. TREATMENT OF PENSION AND EMPLOYEE BENEFIT 
PLANS MAINTAINED BY TRIBAL GOVERN-
MENTS. 
(a) AMENDMENTS
TO
THE INTERNAL REVENUE 
CODE OF 1986.— 
(1) QUALIFIED PUBLIC SAFETY EMPLOYEE.— 
Section 72(t)(10)(B) of the Internal Revenue Code 
of 1986 (defining qualified public safety employee) is 
amended by— 
(A) striking ‘‘or political subdivision of a 
State’’ and inserting ‘‘, political subdivision of 
a State, or Indian tribe’’; and 
(B) striking ‘‘such State or political sub-
division’’ and inserting ‘‘such State, political 
subdivision, or tribe’’. 
(2) GOVERNMENTAL PLAN.—The last sentence 
of section 414(d) of such Code (defining govern-
mental plan) is amended to read as follows: ‘‘The 
term ‘governmental plan’ includes a plan established 
or maintained for its employees by an Indian tribal 
government (as defined in section 7701(a)(40)), a 
subdivision of an Indian tribal government (deter-
mined in accordance with section 7871(d)), an agen-
cy, instrumentality, or subdivision of an Indian trib-
al government, or an entity established under Fed-
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eral, State, or tribal law which is wholly owned or 
controlled by any of the foregoing.’’. 
(3) DOMESTIC
RELATIONS
ORDER.—Section 
414(p)(1)(B)(ii) of such Code (defining domestic re-
lations order) is amended by inserting ‘‘or tribal’’ 
after ‘‘State’’. 
(4) EXEMPT GOVERNMENTAL DEFERRED COM-
PENSATION PLAN.—Section 3121(v)(3) of such Code 
(defining governmental deferred compensation plan) 
is amended by inserting ‘‘by an Indian tribal govern-
ment or subdivision thereof,’’ after ‘‘political subdivi-
sion thereof,’’. 
(5) GRANDFATHER
OF
CERTAIN
DEFERRED 
COMPENSATION PLANS.—Section 457 of the Internal 
Revenue Code is amended by adding at the end the 
following new subsection: 
‘‘(h) CERTAIN TRIBAL GOVERNMENT PLANS GRAND-
FATHERED.—Plans established before the date of enact-
ment of this subsection and maintained by an Indian tribal 
government (as defined in section 7701(a)(40)), a subdivi-
sion of an Indian tribal government (determined in accord-
ance with section 7871(d)), an agency, instrumentality, or 
subdivision of an Indian tribal government, or an entity 
established under Federal, State, or tribal law which is 
wholly owned or controlled by any of the foregoing, in com-
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pliance with subsection (b) or (f) shall be treated as if 
established by an eligible employer under subsection 
(e)(1)(A).’’. 
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) IN GENERAL.—The last sentence of section 
3(32) of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1002(32)) is amended to 
read as follows: ‘‘The term ‘governmental plan’ in-
cludes a plan established or maintained for its em-
ployees by an Indian tribal government (as defined 
in section 7701(a)(40) of the Internal Revenue Code 
of 1986), a subdivision of an Indian tribal govern-
ment (determined in accordance with section 
7871(d) of such Code), an agency, instrumentality, 
or subdivision of an Indian tribal government, or an 
entity established under Federal, State, or tribal law 
which is wholly owned or controlled by any of the 
foregoing.’’. 
(2) DOMESTIC
RELATIONS
ORDER.—Section 
206(d)(3)(B)(ii)(II) 
of 
such 
Act 
(29 
U.S.C. 
1056(d)(3)(B)(ii)(II)) is amended by inserting ‘‘or 
tribal’’ after ‘‘State’’. 
(3) CONFORMING AMENDMENTS.— 
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(A) Section 4021(b) of such Act (29 
U.S.C. 1321(b)) is amended by striking ‘‘or’’ at 
the end of paragraph (12), by striking the pe-
riod at the end of paragraph (13) and inserting 
‘‘; or’’, and by inserting after paragraph (13) 
the following new paragraph: 
‘‘(14) established or maintained for its employ-
ees by an Indian tribal government (as defined in 
section 7701(a)(40) of the Internal Revenue Code of 
1986), a subdivision of an Indian tribal government 
(determined in accordance with section 7871(d) of 
such Code), an agency, instrumentality, or subdivi-
sion of an Indian tribal government, or an entity es-
tablished under Federal, State, or tribal law which 
is wholly owned or controlled by any of the fore-
going.’’. 
(B) Section 4021(b)(2) of such Act (29 
U.S.C. 1321(b)(2)) is amended by striking ‘‘, or 
which is described in the last sentence of sec-
tion 3(32)’’ and inserting a comma. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after the date 
of the enactment of this Act. 
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SEC. 5. TREATMENT OF TRIBAL FOUNDATIONS AND CHAR-
ITIES LIKE CHARITIES FUNDED AND CON-
TROLLED 
BY 
OTHER 
GOVERNMENTAL 
FUNDERS AND SPONSORS. 
(a) IN GENERAL.—Section 170(b)(1)(A) of the Inter-
nal Revenue Code of 1986 is amended by adding at the 
end the following: ‘‘For purposes of clause (vi), the term 
‘governmental unit’ includes an Indian tribal government 
(determined in accordance with section 7871(d) of such 
Code), an agency, instrumentality, or subdivision of an In-
dian tribal government, or an entity established under 
Federal, State, or tribal law which is wholly owned or con-
trolled by any of the foregoing.’’. 
(b) CERTAIN SUPPORTING ORGANIZATIONS.—Sec-
tion 509(a) of such Code is amended by adding at the 
end the following: ‘‘For purposes of paragraph (3), an or-
ganization described in paragraph (2) shall be deemed to 
include an Indian tribal government (determined in ac-
cordance with section 7871(d) of such Code), an agency, 
instrumentality, or subdivision of an Indian tribal govern-
ment, or an entity established under Federal, State, or 
tribal law which is wholly owned or controlled by any of 
the foregoing.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 6. IMPROVING EFFECTIVENESS OF TRIBAL CHILD 
SUPPORT ENFORCEMENT AGENCIES BY PAR-
ITY OF ACCESS TO THE FEDERAL PARENT LO-
CATOR SERVICE AND FEDERAL TAX REFUND 
OFFSETS. 
(a) ACCESS TO FEDERAL PARENT LOCATOR SERV-
ICE.—Section 453(c) of the Social Security Act (42 U.S.C. 
653(c)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(4); 
(2) by striking the period at the end of para-
graph (5) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) the child support enforcement agency of an 
Indian tribe or tribal organization that is eligible for 
a grant under section 455(f).’’. 
(b) IMPROVING
THE COLLECTION
OF PAST-DUE 
CHILD SUPPORT FROM FEDERAL TAX REFUNDS.— 
(1) AMENDMENT
TO
THE
SOCIAL
SECURITY 
ACT.—Section 464 of the Social Security Act (42 
U.S.C. 664) is amended by adding at the end the 
following: 
‘‘(d) APPLICABILITY TO INDIAN TRIBES AND TRIBAL 
ORGANIZATIONS ELIGIBLE FOR A GRANT UNDER THIS 
PART.—This section, except for the requirement to dis-
tribute amounts in accordance with section 457, shall 
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apply to an Indian tribe or tribal organization eligible for 
a grant under section 455(f) in the same manner in which 
this section applies to a State with a plan approved under 
this part.’’. 
(2) AMENDMENT TO THE INTERNAL REVENUE 
CODE.—Subsection (c) of section 6402 of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following: ‘‘For purposes of this sub-
section, any reference to a State shall include a ref-
erence to any Indian tribe or tribal organization de-
scribed in section 464(d) of the Social Security 
Act.’’. 
SEC. 7. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR 
PURPOSES OF DETERMINING UNDER THE 
ADOPTION CREDIT WHETHER A CHILD HAS 
SPECIAL NEEDS. 
(a) IN GENERAL.—Section 23(d)(3) of the Internal 
Revenue Code of 1986 (defining child with special needs) 
is amended— 
(1) in subparagraph (A), by inserting ‘‘or In-
dian tribal government’’ after ‘‘a State’’; and 
(2) in subparagraph (B), by inserting ‘‘or In-
dian tribal government’’ after ‘‘such State’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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