U.S. Senators Catherine Cortez Masto (D-Nev.), a member of the Senate Committee on Indian Affairs, and Lisa Murkowski (R-Alaska), Chairman of the Committee, introduced bipartisan legislation to ensure that Tribes receive the same tax benefits and economic development tools as local and state governments. Specifically, this bill will help create good-paying jobs, foster local investment, and support businesses in Indian Country by updating the federal tax code and removing unfair tax burdens on Native American communities.
“Tribes in Nevada and across the country deserve access to the same tools as state and local governments to strengthen their communities and support their local businesses and services like health, housing, and education,” said Senator Cortez Masto. “Our bill makes commonsense updates to the tax code to ensure fairness, create more good paying jobs, and keep more money in Indian County.”
“I’m pleased to join Senator Cortez Masto in introducing the Tribal Tax and Investment Reform Act, which aims to fix unfair tax rules that have limited economic growth in Native communities for far too long. By allowing Tribal governments to make better use of housing tax credits, improve the ability to issue tax-exempt bonds and incentivize new investment incentives, we’re opening the door for them to finance more infrastructure projects and promote job growth,” said Senator Murkowski. “I appreciate Senator Cortez Masto’s leadership as we have worked to ensure more Native communities benefit from this bill. Together, we have an opportunity to empower Tribal nations to build stronger, more resilient economies.”
“Providing for parity and equity among States and Local Governments, and Tribes and ANCs, when it comes to Tax Exempt Bonding for governmental and economic development purposes, as this bill will do if enacted, is long overdue and will be a major stimulator for growth, economic development, and job creation in Indian Country, the areas of our Nation that desperately need it, and will productively use it,” said Old Harbor Native Corporation CEO, Kristina Woolston.
“The introduction of the Tribal Tax and Investment Reform Act in the Senate is a necessary and overdue effort to modernize the federal tax code in recognition of Tribal sovereignty. The bill reflects decades of Tribal efforts to secure tax parity. It guarantees Tribal governments have equitable access to financial tools, including tax credits and housing incentives, needed to build strong self-determined economies. NAFOA commends the bipartisan leadership behind the legislation, especially Senators Cortez Masto and Murkowski. We urge Congress to act swiftly to ensure that Indian Country is fully included in the nation’s tax and investment framework,” said NAFOA Board President Rodney Butler, Chairman of the Mashantucket Pequot Tribal Nation.
“We thank Senators Cortez Masto and Murkowski for their consistent engagement with Tribal issues and for leading the bill’s introduction in the Senate. The Tribal Tax and Investment Reform Act takes essential steps to align federal tax policy with Tribal sovereignty by addressing long-standing barriers to capital, workforce, and infrastructure development. As the legislation advances, NAFOA is committed to providing technical expertise that centers the realities of Tribal communities to support its passage, “said NAFOA Executive Director Cory Blankenship, Eastern Band of Cherokee Indians Member.”
This bipartisan legislation would create parity between Tribal and state and local governments in the federal tax code by:
- Updating rules for issuing tax-exempt debt to ensure Tribal governments are treated the same as state and local governments;
- Ensuring that essential pension and employment benefits are taxed in the same way as benefits from state governments;
- Ensuring that Tribal General Welfare Benefits are not unfairly categorized as income related to Supplemental Social Income eligibility or benefit amounts;
- Creating new business opportunities in low-income Tribal communities with a $175 New Markets Tax Credit;
- Increasing the effectiveness of Tribal Low-Income Housing Tax Credits in Indian Country;
- Extending and updating the Indian Employment Tax Credit to better serve Tribal families;
- Allowing Indian Health Service (IHS) professionals to access recruitment and retention tax incentives; and
- Making it easier for Tribal families to adopt children and for Tribes to enforce child support.
You can read the text HERE. You can read a summary of the bill HERE.
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