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Indian Tax Extenders Clears the House

December 11, 2014

The Indian Tax Extenders, more formally referred to as the Expiring Provisions Improvement and Efficiency (EXPIRE) Act [H.R. 5771], cleared the House of Representatives on December 3, 2014 with a vote of 378-46. The EXPIRE Act is an extension of existing tax incentives which incentivizes business development on tribal lands. The legislation was sponsored by Representative Dave Camp (R-MI) and extends through 2014. The EXPIRE Act will be revisited by Congress in 2015.
 

The Provisions Affecting Indian Tribes Include:

1.
Accelerated Depreciation for Business Property on Indian Reservations

This provision incentivizes private businesses to locate business property and infrastructure on Indian reservations. It provides qualifying property with a faster write-off than such property would otherwise receive under the regular tax code depreciation schedules. Accelerated Depreciation is a critical component of attracting capital-intensive projects to reservations and can bring higher-skilled jobs to these communities. 

2.

Indian Employment Tax Credit

The Indian Employment Tax Credit provides a 20 percent tax credit for the first $20,000 of wages for any tribal member or spouse employed by a private business operating on an Indian reservation. The provision is not applicable to tribal government jobs, high-wage jobs (defined as jobs paying more than $45,000 per year), or gaming jobs, which limits its value.

3.

The Indian Coal Production Tax Credit

The Indian Coal Tax Credit provides a production tax credit equivalent to $2.00 per ton to coal produced on land owned by an Indian tribe.  

What's Next

The Bill was introduce in Senate on December 8, 2014 and has been placed on the Senate Legislative Calendar under General Orders for consideration by Unanimous Consent. The expectation is that the Senate will vote on the bill shortly as it looks to finish business this week before going on recess. 

For more information, please contact Kayla Gebeck, Kayla@nafoa.org or (202) 770-8321.

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