Earlier today, Senators Cortez Masto (D-NV) and Murkowski (R-AK) introduced bipartisan legislation that would correct longstanding inequities in the U.S. tax code and allow for Tribes and Alaska Native Corporations (ANC) to access previously unavailable tax-free funding sources. The bill, fully titled “Tribal Tax and Investment Reform Act of 2025,” has been a priority for Indian Country and would help ensure a level playing field for Tribal businesses and economies.
NAFOA Board President Rodney Butler, Chairman of the Mashantucket Pequot Tribal Nation, commented on the bill’s introduction:
The introduction of the Tribal Tax and Investment Reform Act in the Senate is a necessary and overdue effort to modernize the federal tax code in recognition of Tribal sovereignty. The bill reflects decades of Tribal efforts to secure tax parity. It guarantees Tribal governments have equitable access to financial tools, including tax credits and housing incentives, needed to build strong self-determined economies. NAFOA commends the bipartisan leadership behind the legislation, especially Senators Cortez Masto and Murkowski. We urge Congress to act swiftly to ensure that Indian Country is fully included in the nation’s tax and investment framework.
The legislation builds upon previous efforts, including a version introduced last Congress as H.R. 8318 by Representatives Moore (D-WI) and Schweikert (R-AZ). The bill proposes important changes to the New Market Tax Credit (NMTC) and the Low Income Housing Tax Credit (LIHTC) programs, specifically by establishing Tribal set-asides and increasing accessibility. Additionally, the legislation would eliminate the “essential government function test,” providing parity with states by removing restrictions on Tribal utilization of tax-free bonds.
In their official press release, Senators Cortez Masto and Murkowski both emphasized the need for this legislation. “Tribes in Nevada and across the country deserve access to the same tools as state and local governments to strengthen their communities and support their local businesses and services like health, housing, and education,” said Senator Cortez Masto. Senator Murkowski added, “By allowing Tribal governments to make better use of housing tax credits, improve the ability to issue tax-exempt bonds, and incentivize new investment incentives, we’re opening the door for them to finance more infrastructure projects and promote job growth.”
NAFOA will continue to engage on the passage of this critical legislation. Several provisions of the Tribal Tax and Investment Reform Act are currently included in the reconciliation legislation moving through the Senate. NAFOA will provide additional information, including the assigned Senate bill number, briefing materials, and updates on the legislation’s progress and potential next steps, as they become available.
