Title: Tribal Tax Empowerment and Jobs Act of 2018
Policy area: Taxation

Summary:
Tribal Tax Empowerment and Jobs Act of 2018
This bill extends or modifies several tax credits, tax deductions, and related rules that affect Native Americans tribes.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7000 Introduced in House (IH)]

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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 Services, 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tribal Tax Empowerment and Jobs Act 
of 2018''.

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 Revenue 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 amended by 
        inserting ``(as in effect before the date of the enactment of 
        the Tribal Tax Empowerment and Jobs Act of 2018)'' 
        after``section7871(c)(3)(E)(ii)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transactions after, and obligations 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 subparagraph (B) the following:
                    ``(C) an Indian 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),''.
    (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 section, 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 necessary 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 regulations), consistent with the 
goals of promoting capital formation 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 RESERVATIONS.

    (a) Indian Employment Credit.--
            (1) In general.--Section 45A of the Internal Revenue Code 
        of 1986 is amended by striking subsection (f).
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after December 31, 2016.
    (b) Accelerated Depreciation for Business Property on an Indian 
Reservation.--
            (1) In general.--Section 168(j) of the Internal 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 INVESTMENTS ON INDIAN RESERVATIONS.

    (a) In General.--Paragraph (2) of section 45D(f) of the Internal 
Revenue Code of 1986 is amended by striking ``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 
subparagraph:
                    ``(C) which intends to make qualified low-income 
                community investments within a reservation, including 
                any such entity established by a tribe or an economic 
                enterprise which intends to make such investments 
                within a reservation.''.
    (b) Definitions.--Section 45D(f) of such Code is amended by adding 
at the end the following:
            ``(4) Definitions.--For purposes of subparagraph (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 Allocation 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 following new clause:
                            ``(xi) the affordable housing needs of 
                        individuals in the State who are members 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 Development Areas for 
Purposes of Certain Buildings.--
            (1) In general.--Subclause (I) of section 42(d)(5)(B)(iii) 
        of such Code is amended by inserting before the period the 
        following: ``, and any Indian area''.
            (2) Indian area.--Clause (iii) of section 42(d)(5)(B) of 
        such Code is amended by redesignating subclause (II) as 
        subclause (III) and by inserting after subclause (I) the 
        following new subclause:
                                    ``(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)).''.
            (3) Eligible buildings.--Clause (iii) of section 
        42(d)(5)(B) of such Code, as amended by paragraph (2), is 
        amended by adding at the end the following new subclause:
                                    ``(IV) 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.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to buildings placed in service after December 31, 
        2018.

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 Indian 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 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. 9. PARITY FOR INDIAN HEALTH SERVICE PROFESSIONALS.

    (a) Exclusion From Gross Income for Payments Made Under Indian 
Health Service Loan Repayment Program.--
            (1) In general.--Section 108(f)(4) is amended by inserting 
        ``under section 108 of the Indian Health Care Improvement 
        Act,'' after ``338I of such Act,''.
            (2) Clerical amendment.--The heading for section 108(f)(4) 
        is amended by striking ``and certain'' 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 Internal Revenue Code 
of 1986 is amended by adding at the end the following:
            ``(4) Indian land.--For purposes of subsection (a), a 
        population census tract located on Indian 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)).''.
    (c) Number of Designations.--Section 1400Z-1(d) of such Code is 
amended by adding at the end the following:
            ``(3) Indian lands excluded.--Indian land deemed to be a 
        qualified opportunity zone by subsection (b)(4) shall not be 
        taken into account for purposes of paragraphs (1) and (2).''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to Indian lands after the date of the enactment of 
this Act.
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