Tribal General Welfare Exclusion Act of 2014
PL 113-168 (H.R.3043), enacted 09/26/2014

[113th Congress Public Law 168]
[From the U.S. Government Publishing Office]



[[Page 128 STAT. 1883]]

Public Law 113-168
113th Congress

                                 An Act


 
 To amend the Internal Revenue Code of 1986 to clarify the treatment of 
 general welfare benefits provided by Indian tribes. <<NOTE: Sept. 26, 
                         2014 -  [H.R. 3043]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Tribal General 
Welfare Exclusion Act of 2014. 26 USC 1 note.>> 
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. <<NOTE: 26 USC 139E.>> 139E. INDIAN GENERAL WELFARE 
                          BENEFITS.

    ``(a) In General.--Gross income does not include the value of any 
Indian general welfare benefit.
    ``(b) <<NOTE: Definition.>>  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 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 
        section, 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 
        Settlement 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) <<NOTE: Consultation. Guidelines.>>  Lavish or 
        extravagant.--The Secretary shall, in consultation with the 
        Tribal Advisory Committee (as established

[[Page 128 STAT. 1884]]

        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 government 
        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 
        significance, reimbursement of costs, or cash honorarium for 
        participation in cultural or ceremonial activities for the 
        transmission of tribal culture shall not be treated as 
        compensation for services.''.

    (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) <<NOTE: 26 USC 139E note.>>  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) <<NOTE: 26 USC 139E note. Applicability.>>  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) <<NOTE: Time period.>>  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. <<NOTE: 26 USC 139E note.>>  TRIBAL ADVISORY COMMITTEE.

    (a) Establishment.--The Secretary of the Treasury shall establish a 
Tribal Advisory Committee (hereinafter in this subsection referred to as 
the ``Committee'').
    (b) Duties.--
            (1) Implementation.--The Committee shall advise the 
        Secretary on matters relating to the taxation of Indians.
            (2) <<NOTE: Consultation.>>  Education and training.--The 
        Secretary shall, in consultation 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.--

[[Page 128 STAT. 1885]]

            (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 Committee 
                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 Committee 
                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. <<NOTE: 26 USC 139E note. Audits.>>  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 exclusion, 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.

[[Page 128 STAT. 1886]]

            (2) Indian tribe.--The term ``Indian tribe'' shall have the 
        meaning given such term by section 45A(c)(6) of such Code.

    Approved September 26, 2014.

LEGISLATIVE HISTORY--H.R. 3043:
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CONGRESSIONAL RECORD, Vol. 160 (2014):
            Sept. 16, considered and passed House.
            Sept. 18, considered and passed Senate.

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