I 
115TH CONGRESS 
2D SESSION 
H. R. 7000 
To amend the Internal Revenue Code of 1986 to provide for increased 
economic opportunities for Native American tribes, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 28, 2018 
Mrs. NOEM introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on Financial Serv-
ices, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for increased economic opportunities for Native American 
tribes, 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 Empower-
ment and Jobs Act of 2018’’. 
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SEC. 2. TREATMENT OF INDIAN TRIBES AS STATES WITH 
RESPECT TO CERTAIN EXCISE TAXES AND 
BOND ISSUANCES. 
(a) IN GENERAL.—Section 7871 of the Internal Rev-
enue Code of 1986 is amended by striking subsections (b), 
(c), and (e). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 7871(a)(2) of such Code is amended 
by striking ‘‘subject to subsection (b),’’. 
(2) Section 45(c)(9)(B) of such Code is amend-
ed by inserting ‘‘(as in effect before the date of the 
enactment of the Tribal Tax Empowerment and 
Jobs Act of 2018)’’ after ‘‘section 7871(c)(3)(E)(ii)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transactions after, and obliga-
tions issued in calendar years beginning after, the date 
of the enactment of this Act. 
SEC. 3. INDIAN TRIBAL GOVERNMENTS PERMITTED TO BE 
SHAREHOLDERS OF S CORPORATIONS. 
(a) IN GENERAL.—Section 1361(c)(6) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘and’’ at 
the end of subparagraph (A), by inserting ‘‘and’’ at the 
end of subparagraph (B), and by inserting after subpara-
graph (B) the following: 
‘‘(C) an Indian tribal government (as de-
fined in section 7701(a)(40) and including any 
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subdivision of such government and any agency 
or instrumentality of such government or sub-
division),’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 4. INTERAGENCY COORDINATION. 
Not later than 1 year after the enactment of this sec-
tion, the Secretary of the Interior and the Secretary of 
the Treasury shall coordinate to consult with Indian tribes 
and with the Securities and Exchange Commission to 
study, and collaborate to establish regulatory changes nec-
essary to qualify an Indian tribe as an accredited investor 
for the purposes of sections 230.500 through 230.508 of 
title 17, Code of Federal Regulations (or successor regula-
tions), consistent with the goals of promoting capital for-
mation and ensuring qualifying Indian tribes have the 
ability to withstand investment loss, on a basis comparable 
to other legal entities that qualify as accredited investors 
who are not natural persons. 
SEC. 5. MAKING PERMANENT THE INDIAN EMPLOYMENT 
CREDIT AND DEPRECIATION RULES FOR 
BUSINESS PROPERTY ON INDIAN RESERVA-
TIONS. 
(a) INDIAN EMPLOYMENT CREDIT.— 
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(1) IN GENERAL.—Section 45A of the Internal 
Revenue Code of 1986 is amended by striking sub-
section (f). 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2016. 
(b) ACCELERATED DEPRECIATION
FOR BUSINESS 
PROPERTY ON AN INDIAN RESERVATION.— 
(1) IN GENERAL.—Section 168(j) of the Inter-
nal Revenue Code of 1986 is amended by striking 
paragraph (9). 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to property placed in 
service after December 31, 2017. 
SEC. 6. PRIORITY UNDER NEW MARKETS TAX CREDIT FOR 
QUALIFIED 
LOW-INCOME 
COMMUNITY 
IN-
VESTMENTS ON INDIAN RESERVATIONS. 
(a) IN GENERAL.—Paragraph (2) of section 45D(f) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘or’’ at the end of subparagraph (A), by striking the 
period at the end of subparagraph (B) and inserting ‘‘, 
or’’, and by adding at the end the following new subpara-
graph: 
‘‘(C) which intends to make qualified low- 
income community investments within a res-
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ervation, including any such entity established 
by a tribe or an economic enterprise which in-
tends to make such investments within a res-
ervation.’’. 
(b) DEFINITIONS.—Section 45D(f) of such Code is 
amended by adding at the end the following: 
‘‘(4) DEFINITIONS.—For purposes of subpara-
graph (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).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
December 31, 2017. 
SEC. 7. LOW-INCOME HOUSING CREDIT. 
(a) SELECTION CRITERIA UNDER QUALIFIED ALLO-
CATION PLANS.— 
(1) IN GENERAL.—Subparagraph (C) of section 
42(m)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ at the end of clause (ix), 
by striking the period at the end of clause (x) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(xi) the affordable housing needs of 
individuals in the State who are members 
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of Indian tribes (as defined in section 
45A(c)(6)).’’. 
(2) EFFECTIVE DATE.—The amendments made 
by subsection (a) shall apply to allocations of credits 
under section 42 of such Code made after December 
31, 2018. 
(b) INCLUSION OF INDIAN AREAS AS DIFFICULT DE-
VELOPMENT AREAS FOR PURPOSES OF CERTAIN BUILD-
INGS.— 
(1) IN
GENERAL.—Subclause (I) of section 
42(d)(5)(B)(iii) of such Code is amended by insert-
ing before the period the following: ‘‘, and any In-
dian area’’. 
(2) INDIAN
AREA.—Clause (iii) of section 
42(d)(5)(B) of such Code is amended by redesig-
nating subclause (II) as subclause (III) and by in-
serting after subclause (I) the following new sub-
clause: 
‘‘(II) INDIAN
AREA.—For pur-
poses of subclause (I), the term ‘In-
dian area’ means any Indian area (as 
defined in section 4(11) of the Native 
American Housing Assistance and 
Self Determination Act of 1996 (25 
U.S.C. 4103(11)).’’. 
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(3) ELIGIBLE BUILDINGS.—Clause (iii) of sec-
tion 42(d)(5)(B) of such Code, as amended by para-
graph (2), is amended by adding at the end the fol-
lowing new subclause: 
‘‘(IV) SPECIAL RULE FOR BUILD-
INGS IN INDIAN AREAS.—In the case 
of an area which is a difficult develop-
ment area solely because it is an In-
dian area, a building shall not be 
treated as located in such area unless 
such building is assisted or financed 
under the Native American Housing 
Assistance and Self Determination 
Act of 1996 (25 U.S.C. 4101 et seq.) 
or the project sponsor is an Indian 
tribe 
(as 
defined 
in 
section 
45A(c)(6)), a tribally designated hous-
ing entity (as defined in section 4(22) 
of such Act (25 U.S.C. 4103(22))), or 
wholly owned or controlled by such an 
Indian tribe or tribally designated 
housing entity.’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to buildings placed in 
service after December 31, 2018. 
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SEC. 8. 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 (as defined in section 
7701(a)(40) and including any subdivision of such 
government and any agency or instrumentality of 
such government or subdivision)’’ after ‘‘a State’’; 
and 
(2) in subparagraph (B), by inserting ‘‘or In-
dian tribal government’’ after ‘‘such State’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 9. PARITY FOR INDIAN HEALTH SERVICE PROFES-
SIONALS. 
(a) EXCLUSION FROM GROSS INCOME
FOR PAY-
MENTS MADE UNDER INDIAN HEALTH SERVICE LOAN 
REPAYMENT PROGRAM.— 
(1) IN GENERAL.—Section 108(f)(4) is amend-
ed by inserting ‘‘under section 108 of the Indian 
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Health Care Improvement Act,’’ after ‘‘338I of such 
Act,’’. 
(2) CLERICAL AMENDMENT.—The heading for 
section 108(f)(4) is amended by striking ‘‘AND CER-
TAIN’’ and inserting ‘‘, INDIAN
HEALTH
SERVICE 
LOAN REPAYMENT PROGRAM, AND CERTAIN’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts received in taxable 
years beginning after December 31, 2017. 
SEC. 10. OPPORTUNITY ZONES. 
(a) DESIGNATION.—Section 1400Z–1(b) of the Inter-
nal Revenue Code of 1986 is amended by adding at the 
end the following: 
‘‘(4) INDIAN
LAND.—For purposes of sub-
section (a), a population census tract located on In-
dian Land is designated as a qualified opportunity 
zone.’’. 
(b) INDIAN LAND DEFINED.—Section 1400Z–1(c) of 
such Code is amended by adding at the end the following: 
‘‘(4) INDIAN
LAND.—The term ‘Indian land’ 
shall have the same meaning as provided in section 
2601(2) of the Energy Policy Act of 1992 (25 
U.S.C. 3501(2)).’’. 
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