The Provisions Affecting Indian Tribes Include:
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.
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.
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.
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.