S 5048 — Native American Tax Parity and Relief Act of 2022

Summary

Native American Tax Parity and Relief Act of 2022 This bill makes changes to the Internal Revenue Code to treat Indian tribal governments in the same manner as their state counterparts for tax purposes. Among other changes, the bill treats Indian tribes as states for purposes of the issuance of tax-exempt bonds, equalizes the tax treatment of charities funded by Indian tribal governments, enhances the ability of tribal governments to enforce child support orders, expands the special-needs adoption tax credit to apply to adoptions ratified by a tribal court, designates certain Indian areas as difficult development areas for purposes of the low-income housing tax credit, increases the amount of wages and benefits taken into account for purposes of determining the Indian employment tax credit, and creates an annual $175 million New Markets Tax Credit for low-income tribal communities and for projects that serve or employ Tribe members.

Bill Text

• Introduced Introduced in Senate Current html September 29, 2022

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill amends several sections of the Internal Revenue Code and the Social Security Act to treat Indian tribes more like states in terms of tax and administrative provisions, enhancing their fiscal and operational parity.

• 42 U.S.C. 653(c)

  (6) the child support enforcement agency of an Indian tribe or tribal organization that is eligible for a grant under section 455(f).

  This addition allows child support enforcement agencies from Indian tribes greater access to the Federal Parent Locator Service.

• 42 U.S.C. 664

  (d) Applicability to Indian Tribes and Tribal Organizations Eligible for a Grant Under This Part.--This section, except for the requirement to distribute amounts in accordance with section 457, shall apply to an Indian tribe or tribal organization eligible for a grant under section 455(f) in the same manner in which this section applies to a State with a plan approved under this part.

  This ensures Indian tribes and tribal organizations can enforce child support in the same manner as states.

• 42 U.S.C. 6402

  For purposes of this subsection, any reference to a State shall include a reference to any Indian tribe or tribal organization described in section 464(d) of the Social Security Act.

  This change allows Indian tribes or tribal organizations to be treated the same as states for the purposes of federal tax refund offsets related to past-due child support.

• 25 U.S.C. 4103(11)

  Indian area.--For purposes of subclause (I), the term `Indian area' means any Indian area (as defined in section 4(11) of the Native American Housing Assistance and Self Determination Act of 1996 (25 U.S.C. 4103(11))).

  This provides a clear definition of 'Indian area' for tax credit purposes.

• 25 U.S.C. 4103(22)

  tribally designated housing entity (as defined in section 4(22) of such Act (25 U.S.C. 4103(22))),

  This amendment properly recognizes tribally designated housing entities within tax code definitions.

• Internal Revenue Code of 1986

  an entity established under Federal, State, or tribal law which is wholly owned or controlled by any of the foregoing.

  This inclusion allows tribal governments and their bodies similar treatment in charitable contexts as state governments.

• Internal Revenue Code of 1986

  Indian tribal government, an agency, instrumentality, or subdivision of an Indian tribal government, or an entity established under Federal, State, or tribal law which is wholly owned or controlled by any of the foregoing.

  It extends the definition of governmental units to include Indian tribal governments for tax purposes.

Action History

1. September 29, 2022

   Introduced in Senate

2. September 29, 2022

   Read twice and referred to the Committee on Finance.

Sponsors

• Catherine Cortez Masto · Primary

Subjects