II 
113TH CONGRESS 
2D SESSION 
H. R. 3043 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 17 (legislative day, SEPTEMBER 16), 2014 
Received 
AN ACT 
To amend the Internal Revenue Code of 1986 to clarify 
the treatment of general welfare benefits provided by 
Indian tribes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
19:33 Sep 19, 2014
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3043.RDS
H3043
tkelley on DSK3SPTVN1PROD with BILLS
HR 3043 RDS 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tribal General Welfare 
Exclusion Act of 2014’’. 
SEC. 2. INDIAN GENERAL WELFARE BENEFITS. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting before section 140 the following new section: 
‘‘SEC. 139E. INDIAN GENERAL WELFARE BENEFITS. 
‘‘(a) IN GENERAL.—Gross income does not include 
the value of any Indian general welfare benefit. 
‘‘(b) INDIAN GENERAL WELFARE BENEFIT.—For 
purposes of this section, the term ‘Indian general welfare 
benefit’ includes any payment made or services provided 
to or on behalf of a member of an Indian tribe (or any 
spouse or dependent of such a member) pursuant to an 
Indian tribal government program, but only if— 
‘‘(1) the program is administered under speci-
fied guidelines and does not discriminate in favor of 
members of the governing body of the tribe, and 
‘‘(2) the benefits provided under such pro-
gram— 
‘‘(A) are available to any tribal member 
who meets such guidelines, 
‘‘(B) are for the promotion of general wel-
fare, 
‘‘(C) are not lavish or extravagant, and 
VerDate Sep 11 2014 
19:33 Sep 19, 2014
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3043.RDS
H3043
tkelley on DSK3SPTVN1PROD with BILLS
HR 3043 RDS 
‘‘(D) are not compensation for services. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) INDIAN TRIBAL GOVERNMENT.—For pur-
poses of this section, the term ‘Indian tribal govern-
ment’ includes any agencies or instrumentalities of 
an Indian tribal government and any Alaska Native 
regional or village corporation, as defined in, or es-
tablished pursuant to, the Alaska Native Claims Set-
tlement Act (43 U.S.C. 1601, et seq.). 
‘‘(2) DEPENDENT.—The term ‘dependent’ has 
the meaning given such term by section 152, deter-
mined without regard to subsections (b)(1), (b)(2), 
and (d)(1)(B). 
‘‘(3) LAVISH
OR
EXTRAVAGANT.—The Sec-
retary shall, in consultation with the Tribal Advisory 
Committee (as established under section 3(a) of the 
Tribal General Welfare Exclusion Act of 2013), es-
tablish guidelines for what constitutes lavish or ex-
travagant benefits with respect to Indian tribal gov-
ernment programs. 
‘‘(4) ESTABLISHMENT OF TRIBAL GOVERNMENT 
PROGRAM.—A program shall not fail to be treated as 
an Indian tribal government program solely by rea-
VerDate Sep 11 2014 
19:33 Sep 19, 2014
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3043.RDS
H3043
tkelley on DSK3SPTVN1PROD with BILLS
HR 3043 RDS 
son of the program being established by tribal cus-
tom or government practice. 
‘‘(5) CEREMONIAL ACTIVITIES.—Any items of 
cultural significance, reimbursement of costs, or 
cash honorarium for participation in cultural or cer-
emonial activities for the transmission of tribal cul-
ture shall not be treated as compensation for serv-
ices.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for part III of subchapter B of chapter 1 of such 
Code is amended by inserting before the item relating to 
section 140 the following new item: 
‘‘Sec. 139E. Indian general welfare benefits.’’. 
(c) STATUTORY
CONSTRUCTION.—Ambiguities in 
section 139E of such Code, as added by this Act, shall 
be resolved in favor of Indian tribal governments and def-
erence shall be given to Indian tribal governments for the 
programs administered and authorized by the tribe to ben-
efit the general welfare of the tribal community. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years for which 
the period of limitation on refund or credit under 
section 6511 of the Internal Revenue Code of 1986 
has not expired. 
VerDate Sep 11 2014 
19:33 Sep 19, 2014
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3043.RDS
H3043
tkelley on DSK3SPTVN1PROD with BILLS
HR 3043 RDS 
(2) ONE-YEAR WAIVER OF STATUTE OF LIMITA-
TIONS.—If the period of limitation on a credit or re-
fund resulting from the amendments made by sub-
section (a) expires before the end of the 1-year pe-
riod beginning on the date of the enactment of this 
Act, refund or credit of such overpayment (to the ex-
tent attributable to such amendments) may, never-
theless, be made or allowed if claim therefor is filed 
before the close of such 1-year period. 
SEC. 3. TRIBAL ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—The Secretary of the Treas-
ury shall establish a Tribal Advisory Committee (herein-
after in this subsection referred to as the ‘‘Committee’’). 
(b) DUTIES.— 
(1) IMPLEMENTATION.—The Committee shall 
advise the Secretary on matters relating to the tax-
ation of Indians. 
(2) EDUCATION AND TRAINING.—The Secretary 
shall, in consultation with the Committee, establish 
and require— 
(A) training and education for internal rev-
enue field agents who administer and enforce 
internal revenue laws with respect to Indian 
tribes on Federal Indian law and the Federal 
VerDate Sep 11 2014 
19:33 Sep 19, 2014
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3043.RDS
H3043
tkelley on DSK3SPTVN1PROD with BILLS