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Hoeven Introduces Bill to Modernize Tax Policy & Boost Economic Development

October 26, 2017

Senator John Hoeven (R-ND), chairman of the Senate Committee on Indian Affairs, has introduced legislation, S.2012, the Tribal Economic Assistance Act of 2017, that would remove regulatory barriers that prohibit tribes from accessing tax free financing instruments, makes permanent valuable tax credits on reservations, provides access to New Markets Tax Credits for tribal enterprises or tribal-based development projects, and incentivizes tribal school construction bonds through private-public-tribal partnerships.  

 

“NAFOA commends Senator Hoeven for prioritizing tribal governments as Congress tackles tax reform,” said NAFOA’s president Cristina Danforth. “NAFOA has been consistently advocating for parity with state and local governments and for  tax incentives that entice economic growth and the hiring of tribal members. Yesterday’s bill introduced by Senator Hoeven will help ensure tribal governments are provided the tax relief necessary to boost job creation, housing, and infrastructure growth.

 

 

Summary:

  • Repeals the essential government function requirement for issuing tax-exempt bonds for community development projects.
  • Makes permanent the accelerated depreciation credit, which attracts capital-intensive projects and infrastructure investment to tribal areas.
  • Makes permanent the Indian employment tax credit, which 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.
  • Improves access to New Markets Tax Credits for tribal enterprises and tribal-based development projects.
  • Provides an alternative method for funding the construction and repair of Indian schools through the use of qualified school construction bonds. 

Resources:

S.2012

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