I 
108TH CONGRESS 
1ST SESSION 
H. R. 388
To amend the Internal Revenue Code of 1986 to provide tax credits for 
Indian investment and employment, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 27, 2003
Mr. SHADEGG 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 provide 
tax credits for Indian investment and employment, 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 ‘‘Indian Reservation 
Jobs and Investment Act of 2003’’. 
SEC. 2. CONSTITUTIONAL AUTHORITY. 
The Constitutional authority upon which this Act 
rests is the power of Congress to lay and collect taxes and 
to regulate commerce with foreign nations and among the
several States and with the Indian tribes, as set forth in 
section 8 of Article I of the United States Constitution. 
SEC. 3. INVESTMENT TAX CREDIT FOR PROPERTY ON IN-
DIAN RESERVATIONS. 
(a) ALLOWANCE OF INDIAN RESERVATION CRED-
IT.—Section 46 of the Internal Revenue Code of 1986 (re-
lating to investment credits) is amended by striking ‘‘and’’ 
at the end of paragraph (2), by striking the period at the 
end of paragraph (3) and inserting ‘‘, and’’, and by adding 
after paragraph (3) the following new paragraph: 
‘‘(4) the Indian reservation credit.’’. 
(b) AMOUNT OF INDIAN RESERVATION CREDIT.—
(1) IN GENERAL.—Section 48 of such Code (re-
lating to the energy credit and the reforestation 
credit) is amended by adding after subsection (b) 
the following new subsection: 
‘‘(c) INDIAN RESERVATION CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 46, 
the Indian reservation credit for any taxable year is 
the Indian reservation percentage of the qualified in-
vestment in qualified Indian reservation property 
placed in service during such taxable year, deter-
mined in accordance with the following table:
‘‘In the case of qualified In-
dian reservation property 
which is—
The Indian reservation percent-
age is—
Reservation personal property .................................................
New reservation construction property ....................................
Reservation infrastructure investment .....................................
‘‘(2) QUALIFIED
INVESTMENT
IN
QUALIFIED 
INDIAN
RESERVATION
PROPERTY
DEFINED.—For 
purposes of this subpart—
‘‘(A) IN
GENERAL.—The term ‘qualified 
Indian reservation property’ means property—
‘‘(i) which is—
‘‘(I) reservation personal prop-
erty; 
‘‘(II) new reservation construc-
tion property; or 
‘‘(III) reservation infrastructure 
investment; and 
‘‘(ii) not acquired (directly or indi-
rectly) by the taxpayer from a person who 
is related to the taxpayer (within the 
meaning of section 465(b)(3)(C)). 
The term ‘qualified Indian reservation property’ 
does not include any property (or any portion 
thereof) placed in service for purposes of con-
ducting or housing class I, II, or III gaming (as 
defined in section 4 of the Indian Gaming Reg-
ulatory Act (25 U.S.C. 2703)). 
‘‘(B) QUALIFIED INVESTMENT.—The term 
‘qualified investment’ means—
‘‘(i) in the case of reservation infra-
structure investment, the amount expended 
by the taxpayer for the acquisition or con-
struction of the reservation infrastructure 
investment; and 
‘‘(ii) in the case of all other qualified 
Indian reservation property, the taxpayer’s 
basis for such property. 
‘‘(C) 
RESERVATION
PERSONAL
PROP-
ERTY.—The term ‘reservation personal prop-
erty’ means qualified personal property which is 
used by the taxpayer predominantly in the ac-
tive conduct of a trade or business within an 
Indian reservation. Property shall not be treat-
ed as ‘reservation personal property’ if it is 
used or located outside the Indian reservation 
on a regular basis. 
‘‘(D) QUALIFIED PERSONAL PROPERTY.—
The term ‘qualified personal property’ means 
property—
‘‘(i) for which depreciation is allow-
able under section 168; 
‘‘(ii) which is not—
‘‘(I) nonresidential real property;