On February 25th, Representatives Gwen Moore (D-WI-04) and David Schweikert (R-AZ-01) introduced the Tribal Tax and Investment Reform Act of 2026 (TTIRA), assigned the number H.R. 7705. The bill builds on previous efforts, including H.R. 8318, introduced by Moore and Schweikert, as well as S. 2022, the Senate version of the TTIRA, introduced by Senators Cortez Masto (D-NV) and Murkowski (R-AK). The bipartisan legislation aims to ensure tax parity for Tribes and boost economic development in Indian Country.
Since its introduction, the bill has been referred to the House Committee on Ways and Means and, in addition, to the Committee on Education and the Workforce, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. The bill proposes key reforms to improve Tribal access to the New Market Tax Credit (NMTC) and the Low-Income Housing Tax Credit (LIHTC). It also eliminates the “essential government function test,” providing parity with states by removing restrictions on Tribal utilization of tax-free bonds.
Key Provisions and Impact
The Tribal Tax and Investment Reform Act has been introduced in both chambers with strong alignment — 10 of the Senate’s 13 provisions are substantively identical to their House counterparts, covering core priorities including full governmental plan parity for Tribal pension and retirement plans, a permanent and enhanced Indian Employment Tax Credit (raising the per-employee wage limit from $20,000 to $30,000), a dedicated $175 million annual New Markets Tax Credit allocation for tribal area investments, inclusion of Indian areas as Difficult Development Areas for the Low-Income Housing Tax Credit, Tribal charities and foundations treated equivalently to other government-sponsored entities, and income exclusions for IHS loan repayment and scholarship recipients.
The most substantive structural difference between the two versions is in Section 3’s Alaska Native bond authority: the Senate creates Alaska Native Corporation Economic Development Bonds under a corporate governance framework with a $45 million national cap, while the House instead establishes Alaska Native Intertribal Consortium Tax-Exempt Bonds with a broader consortium model that specifically enumerates eligible regional nonprofits.
Sec 3. Treatment of Indian Tribes as States concerning Excise Taxes and Bond Issuance
- Eliminates the “essential government function test”, historically limiting Tribal bond use.
- Establishes parity with state and local governments regarding the ability of Tribes to issue governmental bonds.
- Establishes a private activity bond volume cap of $400 million alongside a separate allocation for Alaska Native Intertribal Consortium Tax-Exempt Bonds.
Impact: This will open up new avenues for financing critical infrastructure projects, economic development initiatives, and essential government services within Indian Country.
Section 6: Creation of New Markets Tax Credit for tribal statistical areas.
- Creates an annual $175 million New Markets Tax Credit for low-income Tribal communities and for projects that serve or employ Tribe members.
- Attracts private capital to economically distressed communities, specifically Tribal communities, by providing tax credits to investors.
Impact: Increase NMTC deployment in Indian Country through a credit set-aside and addressing long-standing barriers to capital, workforce, and infrastructure development.
Section 7: Increased effectiveness of Tribal Low-Income Housing Tax Credits (LIHTC) in Indian Country.
- Modifies the definition of difficult development area to include an Indian area for the purposes of determining eligibility.
Impact: Improve Tribal access to tax credits through the Low-income Housing Tax Credits (LIHTC), supporting the creation of affordable housing on Tribal lands, meeting urgent needs across Indian Country.
Bill Summary and Resources
The official summary provides additional detail on each section of the bill.
NAFOA has prepared resources for Tribes, including a redline version of H.R. 7705 compared to S. 2022, introduced in the Senate, by Senators Cortez Masto and Murkowski, highlighting all proposed changes for easy identification. Additionally, a redline of H.R. 7705 compared to H.R. 8318, introduced in the House by Congresswoman Moore and Congressman Schweirkert in the 118th Congress. Additionally, a redline of 26 U.S.C. § 7871 is provided for side-by-side comparison with Section 3 to provide a clear and direct assessment of the bill’s provisions against current law.
NAFOA will continue to engage on this critical legislation. We will provide additional information on the bill’s progress and anticipated next steps as it becomes available.
What Does TTIRA Mean for Your Tribe? Join the NAFOA Community Forum
NAFOA’s Community Forum is a secure, members-only space where Tribal leaders, finance professionals, and stakeholders can connect, share experiences, and collaborate on legislative developments, such as the Tribal Tax and Investment Reform Act. Visit forum.nafoa.org to join the conversation.
If you have any questions or need additional information, contact Nicholas Lovesee, Policy Director at nicholas@nafoa.org, or Marisa Joseph, Policy Specialist, at marisa@nafoa.org.
