I 
117TH CONGRESS 
1ST SESSION H. R. 4784 
To amend the Internal Revenue Code of 1986 to modify the rules for tribal 
economic development bonds. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2021 
Mr. YOUNG introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the rules for tribal economic development bonds. 
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 Economic De-
velopment Act of 2021’’. 
SEC. 2. MODIFICATIONS RELATED TO TRIBAL ECONOMIC 
DEVELOPMENT BONDS. 
(a) INCREASE IN NATIONAL LIMITATION.—Subpara-
graph (B) of section 7871(f)(1) of the Internal Revenue 
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Code of 1986 is amended by striking ‘‘$2,000,000,000’’ 
and inserting ‘‘$4,000,000,000.’’ 
(b) OTHER MODIFICATIONS.— 
(1) IN
GENERAL.—Paragraph (2) of section 
7871(f) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(2) BONDS
TREATED
AS
EXEMPT
FROM 
TAX.—Notwithstanding any other provision of this 
title, gross income shall not include interest on any 
tribal economic development bond.’’. 
(2) MODIFICATION OF DEFINITION OF TRIBAL 
ECONOMIC
DEVELOPMENT
BOND.—Section 
7871(f)(3) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(3) 
TRIBAL
ECONOMIC
DEVELOPMENT 
BOND.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘tribal economic development 
bond’ means any bond issued by an Indian trib-
al government (or a subdivision thereof)— 
‘‘(i) which is part of an issue 95 per-
cent or more of the proceeds of which are 
to be used— 
‘‘(I) by a qualified Native user, 
and 
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‘‘(II) to promote the economic 
development of any Indian tribe or 
Native Corporation (including through 
loans by any Indian tribal government 
or a subdivision thereof to a qualified 
Native user), 
‘‘(ii) except as provided in subpara-
graph (D), which is not an arbitrage bond 
(within the meaning of section 148), 
‘‘(iii) which meets the applicable re-
quirements of section 149 (other than sub-
sections (b), (d), and (g) thereof), and 
‘‘(iv) which is designated by the In-
dian tribal government as a tribal eco-
nomic development bond for purposes of 
this subsection. 
‘‘(B) EXCEPTION.—Such term shall not in-
clude any bond issued as part of an issue if any 
portion of the proceeds of such issue are used 
to finance any portion of a building in which 
class II or class III gaming (as defined in sec-
tion 4 of the Indian Gaming Regulatory Act) is 
conducted or housed or any other property ac-
tually used in the conduct of such gaming. 
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‘‘(C) LIMITATION ON AMOUNT OF BONDS 
DESIGNATED.—The maximum aggregate face 
amount of bonds which may be designated by 
any Indian tribal government under subpara-
graph (A) shall not exceed the amount of na-
tional tribal economic development bond limita-
tion allocated to such government under para-
graph (1). 
‘‘(D) LOANS TO QUALIFIED NATIVE USERS 
PERMITTED.— 
‘‘(i) IN
GENERAL.—For purposes of 
applying section 148 to this paragraph, the 
term ‘arbitrage bond’ shall not include a 
bond issued as part of an issue the pro-
ceeds of which are used to provide a loan 
described in clause (ii) to a qualified Na-
tive user notwithstanding whether the in-
terest rate on such loan produces a yield 
which is higher than the yield on such 
issue. 
‘‘(ii) LOAN DESCRIBED.—A loan is de-
scribed in this clause if the terms of the 
loan prevent the borrower of such loan 
from making further loans with the pro-
ceeds of such loan. 
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‘‘(E) QUALIFIED NATIVE USER.—For pur-
poses of this paragraph, the term ‘qualified Na-
tive user’ means— 
‘‘(i) an Indian tribal government (or a 
subdivision thereof), 
‘‘(ii) a Native Corporation, or 
‘‘(iii) any other entity if— 
‘‘(I) in the case of a corporation, 
not less than two-thirds of the out-
standing stock are owned by one or 
more entities described in clauses (i) 
or (ii), and 
‘‘(II) in the case of any entity 
other than a corporation, not less 
than two-thirds of the capital and 
profits interests are owned by one or 
more entities described in clauses (i) 
or (ii). 
‘‘(F) OTHER DEFINITIONS.—For purposes 
of this paragraph— 
‘‘(i) 
NATIVE
CORPORATION.—The 
term ‘Native Corporation’ has the meaning 
given such term under section 646(h)(2). 
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‘‘(ii) INDIAN TRIBE.—The term ‘In-
dian tribe’ has the meaning given such 
term under subsection (c)(3)(E)(ii). 
‘‘(G) COORDINATION
WITH
THIRD-PARTY 
REPAYMENT, ETC.—A bond shall not fail to be 
treated as a tribal economic development bond 
solely because a person other than the Indian 
tribal government (or subdivision thereof) 
issuing the bond has guaranteed the repayment 
of, is otherwise obligated to repay, or in fact re-
pays, any portion of the principal or interest of 
such bond.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
Æ 
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