H. R. 3043 
One Hundred Thirteenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Friday, 
the third day of January, two thousand and fourteen 
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 Representatives of 
the United States of America in Congress assembled, 
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 chapter 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 pay-
ment 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 specified guidelines 
and does not discriminate in favor of members of the governing 
body of the tribe, and 
‘‘(2) the benefits provided under such program— 
‘‘(A) are available to any tribal member who meets 
such guidelines, 
‘‘(B) are for the promotion of general welfare, 
‘‘(C) are not lavish or extravagant, and 
‘‘(D) are not compensation for services. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
section— 
‘‘(1) INDIAN TRIBAL GOVERNMENT.—For purposes of this sec-
tion, the term ‘Indian tribal government’ includes any agencies 
or instrumentalities of an Indian tribal government and any 
Alaska Native regional or village corporation, as defined in, 
or established pursuant to, the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1601, et seq.). 
‘‘(2) DEPENDENT.—The term ‘dependent’ has the meaning 
given such term by section 152, determined without regard 
to subsections (b)(1), (b)(2), and (d)(1)(B). 
‘‘(3) LAVISH OR EXTRAVAGANT.—The Secretary shall, in con-
sultation with the Tribal Advisory Committee (as established
H. R. 3043—2 
under section 3(a) of the Tribal General Welfare Exclusion 
Act of 2013), establish guidelines for what constitutes lavish 
or extravagant benefits with respect to Indian tribal govern-
ment programs. 
‘‘(4) ESTABLISHMENT OF TRIBAL GOVERNMENT PROGRAM.— 
A program shall not fail to be treated as an Indian tribal 
government program solely by reason of the program being 
established by tribal custom or government practice. 
‘‘(5) CEREMONIAL ACTIVITIES.—Any items of cultural signifi-
cance, reimbursement of costs, or cash honorarium for participa-
tion in cultural or ceremonial activities for the transmission 
of tribal culture shall not be treated as compensation for serv-
ices.’’. 
(b) CONFORMING AMENDMENT.—The table of sections 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 deference shall be given to Indian 
tribal governments for the programs administered and authorized 
by the tribe to benefit 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. 
(2) ONE-YEAR WAIVER OF STATUTE OF LIMITATIONS.—If the 
period of limitation on a credit or refund resulting from the 
amendments made by subsection (a) expires before the end 
of the 1-year period beginning on the date of the enactment 
of this Act, refund or credit of such overpayment (to the extent 
attributable to such amendments) may, nevertheless, 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 Treasury shall estab-
lish a Tribal Advisory Committee (hereinafter in this subsection 
referred to as the ‘‘Committee’’). 
(b) DUTIES.— 
(1) IMPLEMENTATION.—The Committee shall advise the Sec-
retary on matters relating to the taxation of Indians. 
(2) EDUCATION AND TRAINING.—The Secretary shall, in con-
sultation with the Committee, establish and require— 
(A) training and education for internal revenue field 
agents who administer and enforce internal revenue laws 
with respect to Indian tribes on Federal Indian law and 
the Federal Government’s unique legal treaty and trust 
relationship with Indian tribal governments, and 
(B) training of such internal revenue field agents, and 
provision of training and technical assistance to tribal 
financial officers, about implementation of this Act and 
the amendments made thereby. 
(c) MEMBERSHIP.—
H. R. 3043—3 
(1) IN GENERAL.—The Committee shall be composed of 7 
members appointed as follows: 
(A) Three members appointed by the Secretary of the 
Treasury. 
(B) One member appointed by the Chairman, and one 
member appointed by the Ranking Member, of the Com-
mittee on Ways and Means of the House of Representatives. 
(C) One member appointed by the Chairman, and one 
member appointed by the Ranking Member, of the Com-
mittee on Finance of the Senate. 
(2) TERM.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), each member’s term shall be 4 years. 
(B) INITIAL STAGGERING.—The first appointments made 
by the Secretary under paragraph (1)(A) shall be for a 
term of 2 years. 
SEC. 4. OTHER RELIEF FOR INDIAN TRIBES. 
(a) TEMPORARY SUSPENSION OF EXAMINATIONS.—The Secretary 
of the Treasury shall suspend all audits and examinations of Indian 
tribal governments and members of Indian tribes (or any spouse 
or dependent of such a member), to the extent such an audit 
or examination relates to the exclusion of a payment or benefit 
from an Indian tribal government under the general welfare exclu-
sion, until the education and training prescribed by section 3(b)(2) 
of this Act is completed. The running of any period of limitations 
under section 6501 of the Internal Revenue Code of 1986 with 
respect to Indian tribal governments and members of Indian tribes 
shall be suspended during the period during which audits and 
examinations are suspended under the preceding sentence. 
(b) WAIVER OF PENALTIES AND INTEREST.—The Secretary of 
the Treasury may waive any interest and penalties imposed under 
such Code on any Indian tribal government or member of an Indian 
tribe (or any spouse or dependent of such a member) to the extent 
such interest and penalties relate to excluding a payment or benefit 
from gross income under the general welfare exclusion. 
(c) DEFINITIONS.—For purposes of this subsection— 
(1) INDIAN TRIBAL GOVERNMENT.—The term ‘‘Indian tribal 
government’’ shall have the meaning given such term by section 
139E of such Code, as added by this Act.