Tribal Consultation: Notice of Proposed Rulemaking (NPRM) for Federal Tax Status of Entities Wholly Owned by Indian Tribal Governments

December 16, 17, and 18, 2024, 1:00 – 4:00 p.m. ET – The U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) have issued a Notice of Proposed Rulemaking (NPRM) regarding the tax status of wholly owned Tribal entities. Additionally, Treasury announced it will hold Tribal consultations on the proposed rule on December 16, 17, and 18, 2024, at 1 p.m. ET.

This proposed rule describes that Tribal entities chartered or organized by one or more Tribes have the tax status of their owning Tribes. This means that these Tribal entities will not be subject to income tax. Further, the rule describes that these Tribal entities will be eligible for certain Inflation Reeducation Act tax credits through a payment mechanism known as elective pay. To learn more about the proposed rule, please see Treasury’s Press Release.

Treasury is accepting written comments received by January 17, 2025, 11:59 p.m. Alaska Time. Please submit written comments at tribal.consult@treasury.gov.