Native American Tax Parity and Relief Act of 2022
Bill: S.5048 | Sponsor: Sen. Cortez Masto, Catherine (D-NV)
Policy area: Taxation

Summary:
Native American Tax Parity and Relief Act of 2022
This bill makes changes to the Internal Revenue Code to treat Indian tribal governments in the same manner as their state counterparts for tax purposes. Among other changes, the bill

To amend the Internal Revenue Code of 1986 to treat Indian tribal 
governments in the same manner as State governments for certain Federal 
                 tax purposes, and for other purposes.

    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 ``Native American Tax Parity and 
Relief Act of 2022''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) There is a unique Federal legal and political 
        relationship between the United States and Indian tribes.
            (2) Indian tribes have the responsibility and authority to 
        provide governmental programs and services to tribal citizens, 
        develop tribal economies, and build community infrastructure to 
        ensure that Indian reservation lands serve as livable, 
        permanent homes.
            (3) The United States Constitution, United States Federal 
        Court decisions, Executive orders, and numerous other Federal 
        laws and regulations recognize that Indian tribes are 
        governments, retaining the inherent authority to tax and 
        operate as other governments, including (inter alia) financing 
        projects with government bonds and maintaining eligibility for 
        general tax exemptions via their government status.
            (4) Codifying tax parity with respect to tribal governments 
        is consistent with Federal treaties recognizing the sovereignty 
        of tribal governments.
            (5) Indian tribes face historic disadvantages in accessing 
        the underlying capital to build the necessary infrastructure 
        for job creation, and certain statutory restrictions on tribal 
        governance further inhibit tribes' ability to develop strong 
        governance and economies.
            (6) Indian tribes are sometimes excluded from the Internal 
        Revenue Code of 1986 in key provisions which results in unfair 
        tax treatment for tribal citizens or unequal enforcement 
        authority for tribal enforcement agencies.
            (7) Congress is vested with the authority to regulate 
        commerce with Indian tribes, and hereby exercises that 
        authority in a manner which furthers tribal self-governance, 
        and in doing so, further affirms the United States government-
        to-government relationship with Indian tribes.

SEC. 3. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO BOND 
              ISSUANCE.

    (a) In General.--Section 7871(c) of the Internal Revenue Code of 
1986 is amended to read as follows:
    ``(c) Special Rules for Tax-Exempt Bonds.--
            ``(1) In general.--In applying section 146 to bonds issued 
        by Indian Tribal Governments the Secretary shall annually--
                    ``(A) establish a national bond volume cap based on 
                the greater of--
                            ``(i) the State population formula approach 
                        in section 146(d)(1)(A) (using national Tribal 
                        population estimates supplied annually by the 
                        Department of the Interior in consultation with 
                        the Census Bureau), and
                            ``(ii) the minimum State ceiling amount in 
                        section 146(d)(1)(B) (as adjusted in accordance 
                        with the cost of living provision in section 
                        146(d)(2)), and
                    ``(B) under regulations prescribed by the 
                Secretary, allocate such national bond volume cap among 
                all Indian Tribal Governments seeking such an 
                allocation in a particular year.
            ``(2) Application of geographic restriction.--In the case 
        of national bond volume cap allocated under paragraph (1), 
        section 146(k)(1) shall not apply to the extent that such cap 
        is used with respect to financing for a facility located on 
        qualified Indian lands.
            ``(3) Restriction on financing of certain gaming 
        facilities.--No portion of the volume cap allocated under this 
        subsection may be used with respect to the financing of any 
        portion of a building in which class II or class III gaming (as 
        defined in section 4 of the Indian Gaming Regulatory Act) is 
        conducted or housed or any property actually used in the 
        conduct of such gaming.
            ``(4) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Indian tribal government.--The term `Indian 
                Tribal Government' means the governing body of an 
                Indian Tribe, band, nation, or other organized group or 
                community, or of Alaska Natives, which is recognized as 
                eligible for the special programs and services provided 
                by the United States to Indians because of their status 
                as Indians, and also includes any agencies, 
                instrumentalities or political subdivisions thereof.
                    ``(B) Intertribal consortiums, etc.--In any case in 
                which an Indian Tribal Government has authorized an 
                intertribal consortium, a Tribal organization, or an 
                Alaska Native regional or village corporation, as 
                defined in, or established pursuant to, the Alaska 
                Native Claims Settlement Act, to plan for, coordinate 
                or otherwise administer services, finances, functions, 
                or activities on its behalf under this subsection, the 
                authorized entity shall have the rights and 
                responsibilities of the authorizing Indian Tribal 
                Government only to the extent provided in the 
                Authorizing resolution.
                    ``(C) Qualified indian lands.--The term `qualified 
                Indian lands' shall mean an Indian reservation as 
                defined in section 3(d) of the Indian Financing Act of 
                1974 (25 U.S.C. 1452(d)), including lands which are 
                within the jurisdictional area of an Oklahoma Indian 
                Tribe (as determined by the Secretary of the Interior) 
                and shall include lands outside a reservation where the 
                facility is to be placed in service in connection 
                with--
                            ``(i) the active conduct of a trade or 
                        business by an Indian Tribe on, contiguous to, 
                        within reasonable proximity of, or with a 
                        substantial connection to, an Indian 
                        reservation or Alaska Native village, or
                            ``(ii) infrastructure (including roads, 
                        power lines, water systems, railroad spurs, and 
                        communication facilities) serving an Indian 
                        reservation or Alaska Native village.''.
    (b) Conforming Amendment.--Subparagraph (B) of section 45(c)(9) of 
the Internal Revenue Code of 1986 is amended to read as follows:
                    ``(B) Indian tribe.--For purposes of this 
                paragraph, the term `Indian tribe' means any Indian 
                tribe, band, nation, or other organized group or 
                community which is recognized as eligible for the 
                special programs and services provided by the United 
                States to Indians because of their status as 
                Indians.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued in calendar years beginning after the date 
of the enactment of this Act.

SEC. 4. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE CHARITIES 
              FUNDED AND CONTROLLED BY OTHER GOVERNMENTAL FUNDERS AND 
              SPONSORS.

    (a) In General.--Section 170(b)(1) of the Internal Revenue Code of 
1986 is amended by adding at the end the following subparagraph:
                    ``(I) Treatment of charities substantially funded 
                by indian tribal governments.--For purposes of 
                subparagraph (A)(vi), the term `governmental unit' 
                includes an Indian tribal government, an agency, 
                instrumentality, or subdivision of an Indian tribal 
                government, or an entity established under Federal, 
                State, or tribal law which is wholly owned or 
                controlled by any of the foregoing.''.
    (b) Certain Supporting Organizations.--Section 509(a) of such Code 
is amended by adding at the end the following: ``For purposes of 
paragraph (3), an organization described in paragraph (2) shall be 
deemed to include an Indian tribal government, an agency, 
instrumentality, or subdivision of an Indian tribal government, or an 
entity established under Federal, State, or tribal law which is wholly 
owned or controlled by any of the foregoing.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. IMPROVING EFFECTIVENESS OF TRIBAL CHILD SUPPORT ENFORCEMENT 
              AGENCIES BY PARITY OF ACCESS TO THE FEDERAL PARENT 
              LOCATOR SERVICE AND FEDERAL TAX REFUND OFFSETS.

    (a) Access to Federal Parent Locator Service.--Section 453(c) of 
the Social Security Act (42 U.S.C. 653(c)) is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) the child support enforcement agency of an Indian 
        tribe or tribal organization that is eligible for a grant under 
        section 455(f).''.
    (b) Improving the Collection of Past-Due Child Support From Federal 
Tax Refunds.--
            (1) Amendment to the social security act.--Section 464 of 
        the Social Security Act (42 U.S.C. 664) is amended by adding at 
        the end the following:
    ``(d) Applicability to Indian Tribes and Tribal Organizations 
Eligible for a Grant Under This Part.--This section, except for the 
requirement to distribute amounts in accordance with section 457, shall 
apply to an Indian tribe or tribal organization eligible for a grant 
under section 455(f) in the same manner in which this section applies 
to a State with a plan approved under this part.''.
            (2) Amendment to the internal revenue code.--Subsection (c) 
        of section 6402 of the Internal Revenue Code of 1986 is amended 
        by adding at the end the following: ``For purposes of this 
        subsection, any reference to a State shall include a reference 
        to any Indian tribe or tribal organization described in section 
        464(d) of the Social Security Act.''.

SEC. 6. 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 is amended--
            (1) in subparagraph (A), by inserting ``or Indian tribal 
        government'' after ``a State''; and
            (2) in subparagraph (B), by inserting ``or Indian 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. 7. INCLUSION OF INDIAN AREAS AS DIFFICULT DEVELOPMENT AREAS FOR 
              PURPOSES OF CERTAIN BUILDINGS.

    (a) In General.--Subclause (I) of section 42(d)(5)(B)(iii) of the 
Internal Revenue Code of 1986 is amended by inserting before the period 
the following: ``, and any Indian area''.
    (b) Indian Area.--Clause (iii) of section 42(d)(5)(B) of the 
Internal Revenue Code of 1986 is amended by redesignating subclause 
(II) as subclause (IV) and by inserting after subclause (I) the 
following new subclauses:
                                    ``(II) Indian area.--For purposes 
                                of subclause (I), the term `Indian 
                                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))).
                                    ``(III) Special rule for buildings 
                                in indian areas.--In the case of an 
                                area which is a difficult development 
                                area solely because it is an Indian 
                                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 housing 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.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to buildings placed in service after December 31, 2021.

SEC. 8. INDIAN EMPLOYMENT TAX CREDIT.

    (a) Extension.--Section 45A of the Internal Revenue Code of 1986 is 
amended by striking subsection (f).
    (b) Modification of Determination of Amount of Credit.--Paragraph 
(2) of section 45A(a) of the Internal Revenue Code of 1986 is amended 
to read as follows:
            ``(2) the quotient of--
                    ``(A) the sum of the qualified wages and qualified 
                employee health insurance costs which were paid or 
                incurred by the employer (or any predecessor) during 
                the two most recent calendar years ending before the 
                beginning of such taxable year, divided by
                    ``(B) 2.''.
    (c) Increased Limitation.--Section 45A(b)(3) of the Internal 
Revenue Code of 1986 is amended by striking ``$20,000'' and inserting 
``$30,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 9. NEW MARKETS TAX CREDIT FOR TRIBAL STATISTICAL AREAS.

    (a) Additional Allocations for Tribal Statistical Areas.--Section 
45D(f) of the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph:
            ``(4) Additional allocations for tribal statistical 
        areas.--
                    ``(A) In general.--In the case of each calendar 
                year after 2021, there is (in addition to any 
                limitation under any other paragraph of this 
                subsection) a new markets tax credit limitation of 
                $175,000,000 which shall be allocated by the Secretary 
                as provided in paragraph (2) except that such 
                limitation may only be allocated with respect to Tribal 
                Statistical Areas.
                    ``(B) Carryover of unused tribal statistical area 
                limitation.--
                            ``(i) In general.--If the credit limitation 
                        under subparagraph (A) for any calendar year 
                        exceeds the amount of such limitation allocated 
                        by the Secretary for such calendar year, such 
                        limitation for the succeeding calendar year 
                        shall be increased by the amount of such 
                        excess.
                            ``(ii) Limitation on carryover.--No amount 
                        of credit limitation may be carried under 
                        clause (i) past the 5th calendar year following 
                        the calendar year in which such amount of 
                        credit limitation arose.
                            ``(iii) Transfer of expired tribal 
                        statistical area limitation to general 
                        limitation.--In the case of any amount of 
                        credit limitation which would (but for clause 
                        (ii)) be carried under clause (i) to the 6th 
                        calendar year following the calendar year in 
                        which such amount of credit limitation arose, 
                        the new market tax credit limitation under 
                        paragraph (1) for such 6th calendar year shall 
                        be increased by the amount of such credit 
                        limitation.
                    ``(C) Tribal statistical area.--For purposes of 
                this paragraph, the term `Tribal Statistical Area' 
                means--
                            ``(i) any low-income community which is 
                        located in any Tribal Census Tract, Oklahoma 
                        Tribal Statistical Area, Tribal-Designated 
                        Statistical Area, Alaska Native Village 
                        Statistical Area, or Hawaiian Home Land, and
                            ``(ii) any low-income community described 
                        in subsection (e)(1)(B).''.
    (b) Eligibility of Certain Businesses Serving Tribal Members.--
Section 45D(e)(1) of the Internal Revenue Code of 1986 is amended to 
read as follows:
            ``(1) In general.--The term `low-income community' means 
        any area--
                    ``(A) comprising a population census tract if--
                            ``(i) the poverty rate for such tract is at 
                        least 20 percent, or
                            ``(ii)(I) in the case of a tract not 
                        located within a metropolitan area, the median 
                        family income for such tract does not exceed 80 
                        percent of statewide median family income, or
                    ``(II) in the case of a tract located within a 
                metropolitan area, the median family income for such 
                tract does not exceed 80 percent of the greater of 
                statewide median family income or the metropolitan area 
                median family income, or
                    ``(B) which is used for a qualified active low-
                income community business which--
                            ``(i) services a significant population of 
                        Tribal or Alaska Native Village members who are 
                        residents of a low-income community described 
                        in subsection (f)(5)(C)(i), and
                            ``(ii) obtains a written statement from the 
                        relevant Indian Tribal Government (within the 
                        meaning of section 7871(c)) that documents the 
                        eligibility of such qualified active low-income 
                        community business with respect to the 
                        requirement of clause (i).
        Subparagraph (A)(ii) shall be applied using possession wide 
        median family income in the case of census tracts located 
        within a possession of the United States.''.
    (c) Regulatory Authority.--Section 45D(i) of the Internal Revenue 
Code of 1986 is amended by striking ``and'' at the end of paragraph 
(5), by striking the period at the end of paragraph (6) and inserting 
``, and'', and by adding at the end the following new paragraph:
            ``(7) which provide documentation requirements for the 
        written statement required under subsection (e)(1)(B)(ii), and
            ``(8) which provide procedures for identifying qualified 
        low-income community businesses which meet the requirements of 
        subsection (e)(1)(B)(i) (taking into account the location need 
        of such businesses, especially with businesses that serve 
        multiple tribal or Alaska Native Village communities.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to new markets tax credit limitation determined for calendar 
years after December 31, 2021.

SEC. 10. TRIBAL GENERAL WELFARE PROGRAMS CLARIFICATION.

    (a) In General.--Section 1612(b) of the Social Security Act (42 
U.S.C. 1382a(b)) is amended by striking ``; and'' at the end of 
paragraph (25), by striking the period at the end of paragraph (26) and 
inserting ``; and'', and by adding at the end the following new 
paragraph:
            ``(27) any Indian general welfare benefit (as defined in 
        section 139E of the Internal Revenue Code of 1986).''.
    (b) Exclusion From Resources.--Section 1613(a) of the Social 
Security Act (42 U.S.C. 1382b(a)) is amended by striking ``; and'' at 
the end of paragraph (16), by striking the period at the end of 
paragraph (17) and inserting ``; and'', and by inserting after 
paragraph (17) the following new paragraph:
            ``(18) for the 9-month period beginning after the month in 
        which received, any Indian general welfare benefit (within the 
        meaning of section 139E of the Internal Revenue Code of 
        1986).''.
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