I
103D CONGRESS
1ST SESSION
H. R. 478
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for severance taxes and personal property taxes paid to
an Indian tribal government.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1993
Mr. RICHARDSON 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 allow a
credit against income tax for severance taxes and per-
sonal property taxes paid to an Indian tribal government.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CREDIT FOR CERTAIN TAXES PAID TO INDIAN
TRIBAL GOVERNMENT.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business related credits) is amended by
adding at the end thereof the following new section:
‘‘SEC. 44. CERTAIN TAXES PAID TO INDIAN TRIBAL GOV-
ERNMENTS.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the amount of the Indian tribal government taxes credit
determined under this section for any taxable year shall
be an amount equal to the aggregate qualified taxes paid
or incurred during such taxable year by the taxpayer in
carrying on a trade or business.
‘‘(b) QUALIFIED TAXES.—For purposes of this sec-
tion, the term ‘qualified taxes’ means—
‘‘(1) any severance tax imposed by an Indian
tribal government, and
‘‘(2) any personal property tax (as defined in
section 164(b)(1)) imposed by an Indian tribal gov-
ernment.
‘‘(c) CREDIT LIMITED TO DOUBLE-TAXED ACTIVI-
TIES AND PROPERTY.—The amount of any tax which may
be taken into account under subsection (b) with respect
to removal or with respect to any property shall not exceed
the lesser of—
‘‘(1) the amount of any other tax imposed on
such removal or property by any State or local gov-
ernment (other than an Indian tribal government),
or
‘‘(2) the amount of such other tax which would
have been imposed on such removal or property
under laws in effect on January 1, 1991.
‘‘(d) DENIAL OF DEDUCTION.—No deduction shall be
allowed under this chapter for any amount for which a
credit is determined under this section.’’
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Subsection (b) of section 38 of such Code
is amended by striking ‘‘plus’’ at the end of paragraph
(6), by striking the period at the end of paragraph (7)
and inserting ‘‘, plus’’, and by adding at the end thereof
the following new paragraph:
‘‘(8) the Indian tribal government taxes credit
determined under section 44(a).’’
(c) INDIAN TRIBAL GOVERNMENT TAXES CREDIT
ALLOWABLE AGAINST ENTIRE REGULAR TAX AND AL-
TERNATIVE MINIMUM TAX.—
(1) Subsection (c) of section 38 of such Code
(relating to limitation based on amount of tax) is
amended by adding at the end thereof the following
new paragraph:
‘‘(3) SPECIAL RULES FOR INDIAN TRIBAL GOV-
ERNMENT TAXES CREDIT.—
‘‘(A) IN GENERAL.—This section and sec-
tion 39 shall be applied separately—
‘‘(i) first with respect to so much of
the credit allowed by subsection (a) as is
not attributable to section 44(a), and
‘‘(ii) then with respect to so much of
the credit allowed by subsection (a) as is
attributable to section 44(a).
‘‘(B) RULES FOR APPLICATION OF INDIAN
TRIBAL GOVERNMENT TAXES CREDIT.—In the
case of the credit attributable to section 44(a),
in lieu of applying the preceding paragraphs of
this subsection, the amount of such credit al-
lowed under subsection (a) for any taxable year
shall not exceed the net chapter 1 tax for such
year.
‘‘(C) NET CHAPTER 1 TAX.—For purposes
of subparagraph (B), the term ‘net chapter 1
tax’ means the sum of the regular tax liability
for the taxable year and the tax imposed by sec-
tion 55 for the taxable year, reduced by the
sum of the credits allowable under this part for
the taxable year (other than under subpart C
and section 44(a)).’’
(2) Paragraph (2) of section 55(c) of such code
is amended to read as follows:
‘‘(4) CROSS REFERENCES.—
‘‘(A) For provisions providing that certain
credits are not allowable against the tax im-
posed by this section, see sections 26(a),
28(d)(2), 29(b)(5), and 38(c).
‘‘(B) For provision allowing Indian tribal
government taxes credit against the tax im-
posed by this section, see section 38(c)(3).’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subpart D is amended by adding at the end there-
of the following new item:
‘‘Sec. 44. Certain taxes paid to Indian tribal governments.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
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