H.R. 7705

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7705 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 7705

To amend the Internal Revenue Code of 1986 to treat Indian Tribal 
Governments in the same manner as State governments for certain Federal 
tax purposes, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 25, 2026

Ms. Moore of Wisconsin (for herself, Mr. Schweikert, Mr. Thompson of 
California, Mr. Yakym, Ms. DelBene, Mr. Cole, Ms. Davids of Kansas, Mr. 
Valadao, Mr. Panetta, and Mr. Moolenaar) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
to the Committee on Education and Workforce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee 
concerned

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to treat Indian Tribal 
Governments in the same manner as State governments for certain Federal 
tax purposes, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Tribal Tax and 
Investment Reform Act of 2026''.
(b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Treatment of Indian tribes as States with respect to excise 
taxes and bond issuance.
Sec. 4. Treatment of pension and employee benefit plans maintained by 
Tribal Governments.
Sec. 5. Treatment of Tribal foundations and charities like charities 
funded and controlled by other governmental 
funders and sponsors.
Sec. 6. New markets tax credit for tribal area investments.
Sec. 7. Inclusion of Indian areas as difficult development areas for 
purposes of certain buildings.
Sec. 8. Tribal general welfare and trust programs clarification.
Sec. 9. Indian employment tax credit.
Sec. 10. Exclusion from gross income for payments under Indian health 
service loan repayment program.
Sec. 11. Exclusion of certain amounts received under Indian Health 
Professions Scholarships Program.

SEC. 2. FINDINGS.

The Congress finds the following:
(1) There is a unique Federal legal and political 
relationship between the United States and Indian Tribes.
(2) Indian Tribes have the responsibility and authority to 
provide governmental programs and services to Tribal citizens, 
develop Tribal economies, and build community infrastructure to 
ensure that Indian reservation lands serve as livable, 
permanent homes.
(3) The United States Constitution, United States Federal 
Court decisions, Executive orders, and numerous other Federal 
laws and regulations recognize that Indian Tribes are 
governments, retaining the inherent authority to tax and 
operate as other governments, including (inter alia) financing 
projects with government bonds and maintaining eligibility for 
general tax exemptions via their government status.
(4) Codifying tax parity with respect to Tribal Governments 
is consistent with Federal treaties recognizing the sovereignty 
of Tribal Governments.
(5) That Indian Tribes face historic disadvantages in 
accessing the underlying capital to build the necessary 
infrastructure for job creation, and that certain statutory 
restrictions on Tribal governance further inhibit Tribes' 
ability to develop strong governance and economies.
(6) Indian Tribes are sometimes excluded from the Internal 
Revenue Code of 1986 in key provisions which results in unfair 
tax treatment for Tribal citizens or unequal enforcement 
authority for Tribal enforcement agencies.
(7) Congress is vested with the authority to regulate 
commerce with Indian Tribes, and hereby exercises that 
authority in a manner which furthers Tribal self-governance, 
and in doing so, further affirms the United States government-
to-government relationship with Indian Tribes.

SEC. 3. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO EXCISE 
TAXES AND BOND ISSUANCE.

(a) Repeal of Essential Governmental Function Requirements.--
Section 7871 of the Internal Revenue Code of 1986 is amended by 
striking subsections (b) and (e) and redesignating subsections (c), 
(d), and (f) as subsections (b), (c), and (d), respectively.
(b) Special Rules for Tax-Exempt Bonds.--Subsection (b) of section 
7871 of such Code, as redesignated by subsection (a), is amended to 
read as follows:
``(b) Special Rules for Tax-Exempt Bonds.--
``(1) In general.--In applying section 146 to bonds issued 
by Indian Tribal Governments--
``(A) there shall be a national bond volume cap for 
each calendar year after 2026 equal to $400,000,000, 
and
``(B) the volume cap for any Indian Tribal 
Government shall be the portion of such national bond 
volume cap which is allocated by the Secretary (under 
such regulations as the Secretary may prescribe) to 
such Indian Tribal Government.
``(2) Application of geographic restriction.--In the case 
of national bond volume cap allocated under paragraph (1), 
section 146(k)(1) shall not apply to the extent that such cap 
is used with respect to financing for a facility located on 
qualified Indian lands.
``(3) Restriction on financing of certain gaming 
facilities.--No portion of proceeds from an obligation issued 
by an Indian Tribal Government (or subdivision thereof) under 
section 103 may be used with respect to the financing of any 
portion of a building in which class II or class III gaming (as 
defined in section 4 of the Indian Gaming Regulatory Act (25 
U.S.C. 2703)) is conducted or housed or any property actually 
used in the conduct of such gaming.
``(4) Definitions and special rules.--
``(A) Indian tribal government.--For purposes of 
this subsection, subsection (e), and so much of 
subsection (a) as relates to paragraph (4) of such 
subsection, the term `Indian Tribal Government' means 
the recognized governing body of any Indian or Alaska 
Native tribe, band, nation, pueblo, village, community, 
component band, or component reservation, individually 
identified (including parenthetically) pursuant to 
section 104 of the Federally Recognized Indian Tribe 
List Act of 1994 (25 U.S.C. 5131), including any 
agency, instrumentality, or subdivision of such 
governing body, and, under regulations prescribed by 
the Secretary, any entity established under Federal, 
State, or Tribal law which is wholly owned or 
controlled by any of the foregoing.
``(B) Qualified indian lands.--For purposes of this 
subsection, the term `qualified Indian lands' means--
``(i) Indian lands within the meaning of 
section 29(j)(8) of the Stevenson-Wydler 
Technology Innovation Act of 1980 (15 U.S.C. 
3722b(j)(8)),
``(ii) land held in fee simple by an Indian 
Tribal Government,
``(iii) each region in effect under 
subsection (a) or (b) of section 7 of the 
Alaska Native Claims Settlement Act (43 U.S.C. 
1606),
``(iv) Hawaiian Home Lands (as defined in 
section 801 of the Native American Housing 
Assistance and Self-Determination Act of 1996 
(25 U.S.C. 4221)), and
``(v) under regulations prescribed by the 
Secretary, lands where the facility is to be 
placed in service in connection with--
``(I) the active conduct of a trade 
or business by an Indian Tribe on, 
contiguous to, within reasonable 
proximity of, or with a substantial 
connection to lands described in clause 
(i), (ii), (iii), or (iv), or
``(II) infrastructure (including 
roads, power lines, water systems, 
railroad spurs, and communication 
facilities) serving lands described in 
clause (i), (ii), (iii), or (iv).
Such term shall not include any land which is 
not within the United States.
``(C) Intertribal consortia, etc.--Under 
regulations prescribed by the Secretary, an Indian 
Tribal Government (including any subdivision thereof), 
or any combination of such Indian Tribal Governments 
operating pursuant to a written agreement, may 
authorize any person to plan for, coordinate or 
otherwise administer services, finances, functions, or 
activities on its behalf under this subsection, except 
that the authorized person shall have the rights and 
responsibilities of the authorizing Indian Tribal 
Government (or Indian Tribal Governments) only to the 
extent provided in the authorizing resolution.
``(D) Inflation adjustment.--In the case of any 
calendar year after 2027, the $400,000,000 amount in 
paragraph (1)(A) shall be increased by an amount equal 
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment 
determined under section 1(f)(3) for such 
calendar year by substituting `calendar year 
2026' for `calendar year 2016' in subparagraph 
(A)(ii) thereof.
If any increase determined under the preceding sentence 
is not a multiple of $100,000, such increase shall be 
rounded to the nearest multiple of $100,000.''.
(c) Alaska Native Intertribal Consortium Tax-Exempt Bonds.--Section 
7871 of such Code, as amended by subsection (a), is amended by adding 
at the end the following new subsection:
``(e) Alaska Native Intertribal Consortium Tax-Exempt Bonds.--
``(1) Bonds treated as exempt from tax.--In the case of an 
Alaska Native Intertribal Consortium tax-exempt bond--
``(A) such bond shall be treated for purposes of 
this title in the same manner as if such bond were 
issued by an Indian Tribal Government, and
``(B) in applying section 146 to any issuer of such 
bond--
``(i) there shall be a national bond volume 
cap for each calendar year after 2026 equal to 
$45,000,000, and
``(ii) the volume cap of such issuer shall 
be the portion of such national bond volume cap 
which is allocated by the Secretary (under such 
regulations as the Secretary may prescribe) to 
such issuer.
``(2) Alaska native intertribal consortium tax-exempt 
bond.--For purposes of this section--
``(A) In general.--The term `Alaska Native 
Intertribal Consortium tax-exempt bond' means any bond 
issued by an Alaska Native Intertribal Consortium if--
``(i) such bond is a qualified bond (as 
defined in section 141(e), determined without 
regard to paragraph (2) thereof),
``(ii) none of the net proceeds of such 
bond are used for the purpose of providing any 
facility, project, or program for which the 
proceeds of any bond to which subsection (b) 
applies are also used, and
``(iii) such bond is designated as an 
Alaska Native Intertribal Consortium tax-exempt 
bond by such Alaska Native Intertribal 
Consortium.
``(B) Exceptions.--The term `Alaska Native 
Intertribal Consortium tax-exempt bond' shall not 
include any bond issued as part of an issue if--
``(i) any portion of the proceeds of such 
issue are used to finance any portion of a 
building in which class II or class III gaming 
(as defined in section 4 of the Indian Gaming 
Regulatory Act) is conducted or housed or any 
other property actually used in the conduct of 
such gaming, or
``(ii) any portion of the proceeds of such 
issue are used to provide (including the 
provision of land for) any private or 
commercial golf course, country club, massage 
parlor, hot tub facility, suntan facility, 
racetrack or other facility used for gambling, 
or any store the principal business of which is 
the sale of alcoholic beverages for consumption 
off premises.
``(C) Limitation on amount of bonds designated.--
The maximum aggregate face amount of bonds issued by 
any Alaska Native Intertribal Consortium which may be 
designated by such Consortium under subparagraph 
(A)(ii) shall not exceed the amount of national Alaska 
Native Intertribal Consortium tax-exempt bond 
limitation allocated to such Consortium under paragraph 
(1).
``(3) Alaska native intertribal consortium.--For purposes 
of this subsection--
``(A) In general.--The term `Alaska Native 
Intertribal Consortium' means--
``(i) any combination of Alaska Native 
Tribal Governments operating pursuant to a 
written agreement, and
``(ii) any Alaska Native regional non-
profit organization.
``(B) Alaska native tribal government.--The term 
`Alaska Native Tribal Government' means any Indian 
Tribal Government with respect to one or more regions 
in effect under subsection (a) or (b) of section 7 of 
the Alaska Native Claims Settlement Act (43 U.S.C. 
1606).
``(C) Alaska native regional non-profit 
organization.--The term `Alaska Native regional non-
profit organization' means--
``(i) the Aleutian Pribilof Islands 
Association, Inc.,
``(ii) the Arctic Slope Native Association,
``(iii) the Association of Village Council 
Presidents,
``(iv) the Bristol Bay Native Association,
``(v) the Chugachmiut, Inc.,
``(vi) the Cook Inlet Tribal Council,
``(vii) the Copper River Native 
Association,
``(viii) the Kawerak, Inc.,
``(ix) the Kodiak Area Native Association,
``(x) the Maniilaq,
``(xi) the Tanana Chiefs Conference,
``(xii) the Alaska Native Tribal Health 
Consortium,
``(xiii) the Bristol Bay Area Health 
Corporation,
``(xiv) the Norton Sound Health 
Corporation,
``(xv) the Southeast Alaska Regional Health 
Consortium,
``(xvi) the Yukon Kuskokwim Health 
Corporation, and
``(xvii) under regulations prescribed by 
the Secretary, such other organizations as may 
be identified by the Secretary, upon request by 
an Indian Tribal Government and after 
consultation with the Bureau of Indian Affairs, 
as Alaska Native regional non-profit 
organizations for purposes of this subsection.
``(4) Application of certain rules regarding intertribal 
consortia.--The rules of subsection (b)(4)(C) shall apply with 
respect to Alaska Native Intertribal Consortiums under this 
subsection in the same manner such rules apply to Indian Tribal 
Governments under subsection (b).
``(5) Special rules for alaska native corporation.--
``(A) In general.--If any Alaska Native Corporation 
participates with respect to any bond, such bond shall 
not be treated as an Alaska Native Intertribal 
Consortium tax-exempt bond unless such Corporation 
provides a written certification to the Secretary that 
the facilities or services provided with the proceeds 
of such bond will promote the economic, social, or 
cultural well-being of such Corporation's shareholders 
pursuant to the Alaska Native Claims Settlement Act (43 
U.S.C. 1601 et seq.).
``(B) Participation.--For purposes of subparagraph 
(A), an Alaska Native Corporation shall be treated as 
participating with respect to any bond if such 
Corporation--
``(i) is part of any Alaska Native regional 
non-profit organization which is part of the 
Alaska Native Intertribal Consortium that 
issues such bond,
``(ii) is authorized pursuant to paragraph 
(4) to provide any service described in 
subsection (b)(4)(C) with respect to such bond, 
or
``(iii) receives any of the proceeds of 
such bond.
``(C) Alaska native corporation.--For purposes of 
this paragraph, the term `Alaska Native Corporation' 
means any Regional Corporation, any Village 
Corporation, any Urban Corporation, and any Group 
Corporation (as such terms are defined in section 3 of 
the Alaska Native Claims Settlement Act (43 U.S.C. 
1602)).
``(6) Inflation adjustment.--In the case of any calendar 
year after 2027, the $45,000,000 amount in paragraph (1)(B)(i) 
shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined 
under section 1(f)(3) for such calendar year by 
substituting `calendar year 2026' for `calendar year 
2016' in subparagraph (A)(ii) thereof.
If any increase determined under the preceding sentence is not 
a multiple of $100,000, such increase shall be rounded to the 
nearest multiple of $100,000.''.
(d) Termination of Tribal Economic Development Bonds.--Section 
7871(d)(3) of such Code, as amended by subsection (a), is amended by 
adding at the end the following new subparagraph:
``(D) Termination.--For purposes of this section, 
the term `tribal economic development bond' shall not 
include any bond issued after December 31, 2029.''.
(e) Conforming Amendments.--
(1) Section 7871(a) of such Code is amended--
(A) in paragraph (2) by striking ``subject to 
subsection (b),'', and
(B) in paragraph (4) by striking ``subsection (c)'' 
and inserting ``subsection (b)''.
(2) Section 45(c)(9)(B) of such Code is amended to read as 
follows:
``(B) Indian tribe.--For purposes of this 
paragraph, the term `Indian Tribe' means any Indian 
Tribe, band, nation, or other organized group or 
community which is recognized as eligible for the 
special programs and services provided by the United 
States to Indians because of their status as 
Indians.''.
(f) Effective Dates.--
(1) In general.--Except as otherwise provided in this 
subsection, the amendments made by this section shall apply to 
obligations issued in calendar years beginning after December 
31, 2026.
(2) Excise taxes.--The amendments made by subsections (a) 
and (e)(1)(A) shall take effect on and after the first day of 
the first calendar quarter beginning more than 60 days after 
the date of the enactment of this Act.

SEC. 4. TREATMENT OF PENSION AND EMPLOYEE BENEFIT PLANS MAINTAINED BY 
TRIBAL GOVERNMENTS.

(a) Treatment of Plans.--
(1) Qualified public safety employee.--Section 72(t)(10)(B) 
of the Internal Revenue Code of 1986 (defining qualified public 
safety employee) is amended by--
(A) striking ``or political subdivision of a 
State'' and inserting ``, political subdivision of a 
State, or Indian tribal government''; and
(B) striking ``such State or political 
subdivision'' and inserting ``such State, political 
subdivision, or Indian tribal government''.
(2) Governmental plan.--The last sentence of section 414(d) 
of such Code (defining governmental plan) is amended to read as 
follows: ``The term `governmental plan' includes a plan 
established or maintained for its employees by an 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.''.
(3) Exempt governmental deferred compensation plan.--
Section 3121(v)(3) of such Code (defining governmental deferred 
compensation plan) is amended by inserting ``by an 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,'' after ``political 
subdivision thereof,''.
(4) Grandfather of certain deferred compensation plans.--
Section 457 of such Code is amended by adding at the end the 
following new subsection:
``(h) Certain Tribal Government Plans Grandfathered.--Plans 
established before the date of enactment of this subsection and 
maintained by an 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, in compliance with subsection (b) shall be 
treated as if established by an eligible employer under subsection 
(e)(1)(A). A plan described in the preceding sentence may, at the 
election of the employer, continue to be maintained without regard to 
the preceding sentence or be amended if necessary to be maintained in 
compliance with this section.''.
(5) Long-term, part-time workers.--Section 401(k)(15)(C) of 
such Code is amended to read as follows:
``(C) Application of standards to certain employees 
and plans.--The provisions of paragraph (2)(D)(ii) 
shall not apply to--
``(i) employees described in section 
410(b)(3), and
``(ii) a governmental plan within the 
meaning of section 414(d).''.
(b) Enforcement Moratorium Related to Pension Protection Act of 
2006.--
(1) In general.--An Indian tribal government, an agency, 
instrumentality, or subdivision of an Indian tribal government, 
and an entity established under Federal, State, or Tribal law 
which is wholly owned or controlled by any of the foregoing, 
shall not be subject to a Federal agency enforcement action 
based solely on the amendments made by the Pension Protection 
Act of 2006 to the Internal Revenue Code of 1986 or the 
Employee Retirement Income and Security Act of 1974 with 
respect to any period prior to the publication of regulations 
with respect to such amendments.
(2) Indian tribal government.--For purposes of this 
subsection, the term ``Indian tribal government'' has the 
meaning given such term in section 7701(a)(40) of the Internal 
Revenue Code of 1986.
(3) Regulatory guidance.--The Secretary of the Treasury (or 
the Secretary's delegate) and the Secretary of Labor shall, in 
consultation with Tribal Advisory Committee established 
pursuant to section 3 of the Tribal General Welfare Exclusion 
Act of 2014 and Indian tribal governments and relevant 
governmental agencies, issue such regulations or other guidance 
as may be necessary to carry out this subsection.
(c) Uniform Protections and Fiduciary Standards for Tribal Plans.--
(1) In general.--Chapter 77 of such Code is amended by 
adding at the end the following:

``SEC. 7531. UNIFORM PROTECTIONS AND FIDUCIARY STANDARDS FOR TRIBAL 
PENSION PLANS.

``(a) In General.--A Tribal pension plan shall be subject to the 
uniform protections and fiduciary standards for Tribal pension plans.
``(b) Personal Liability.--
``(1) In general.--Any person who is a fiduciary with 
respect to a Tribal pension plan who breaches any of the 
responsibilities, obligations, or duties imposed upon 
fiduciaries by the uniform protections and fiduciary standards 
for Tribal pension plans, shall be personally liable to make 
good to such plan any losses to the plan resulting from each 
such breach, and to restore to such plan any profits of such 
fiduciary which have been made through use of assets of the 
plan by the fiduciary, and shall be subject to such other 
equitable or remedial relief as the court may deem appropriate, 
including removal of such fiduciary.
``(2) No liability for prior breach.--No fiduciary shall be 
liable with respect to a breach of fiduciary duty under this 
section if such breach was committed before the fiduciary 
became a fiduciary or after the fiduciary ceased to be a 
fiduciary.
``(c) Nondiscrimination.--
``(1) No interference with protected rights.--It shall be 
unlawful for any person to discharge, fine, suspend, expel, 
discipline, or discriminate against a participant or 
beneficiary for exercising any right to which the participant 
or beneficiary is entitled under the provisions of a Tribal 
pension plan or under the uniform protections and fiduciary 
standards for Tribal pension plans, or for the purpose of 
interfering with the attainment of any right to which such 
participant or beneficiary may become entitled under such plan 
or the uniform protections and fiduciary standards for Tribal 
pension plans.
``(2) Nondiscrimination.--Contributions or benefits 
provided under a Tribal pension plan shall not discriminate in 
favor of highly compensated employees (within the meaning of 
section 414(q)).
``(d) Definitions and Special Rules.--For purposes of this 
section--
``(1) Tribal pension plan.--The term `Tribal pension plan' 
means any qualified employer retirement plan (as defined in 
section 72(d)(1)(G)) which--
``(A) is a governmental plan (as defined in section 
414(d)),
``(B) has at least 500 active participants, and
``(C) is established or maintained for the 
employees of an 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.
``(2) Uniform protections and fiduciary standards for 
tribal pension plans.--The term `uniform protections and 
fiduciary standards for Tribal pension plans' means that in 
connection with a fiduciary's duties with respect to a Tribal 
pension plan the fiduciary shall discharge those duties--
``(A) solely in the interest of the participants 
and beneficiaries,
``(B) for the exclusive purpose of providing 
benefits to participants and beneficiaries,
``(C) to defray reasonable expenses of 
administering the plan,
``(D) with the care, skill, prudence, and diligence 
under the circumstances then prevailing that a prudent 
person acting in a like capacity and familiar with such 
matters would use in the conduct of an enterprise of a 
like character and with like aims,
``(E) by diversifying the investments of the plan 
so as to minimize the risk of large losses, unless 
under the circumstances it is clearly prudent not to do 
so, and
``(F) in accordance with the documents and 
instruments governing the plan insofar as such 
documents and instruments are consistent with the 
requirements of the preceding subparagraphs.
``(3) Control over assets by participant or beneficiary.--
In the case of a Tribal pension plan which provides for 
individual accounts and permits a participant or beneficiary to 
exercise control over the assets in their account, if a 
participant or beneficiary exercises control over the assets in 
their account--
``(A) such participant or beneficiary shall not be 
deemed to be a fiduciary by reason of such exercise, 
and
``(B) no person who is otherwise a fiduciary shall 
be liable under this section for any loss, or by reason 
of any breach, which results from such participant's or 
beneficiary's exercise of control.
``(e) Notice Requirements.--The plan administrator for any Tribal 
pension plan shall cause to be furnished to each participant covered 
under the plan a summary plan description. The summary plan description 
and any notice of material modifications shall be provided or made 
available to participants within a reasonable period following the 
effective date of a participant's coverage or the effective date of 
material changes to the plan, as applicable. The summary plan 
description shall--
``(1) be written in a manner calculated to be understood by 
the average plan participant,
``(2) be sufficiently accurate and comprehensive to 
reasonably apprise such participants and beneficiaries of their 
rights and obligations under the plan, and
``(3) specify any material modification in the terms to the 
plan made after the previous summary plan description.
``(f) Persons Empowered To Bring a Civil Action.--In the case of a 
Tribal pension plan, a civil action may be brought--
``(1) by a participant or beneficiary to recover benefits 
due under the terms of the plan, to enforce rights under the 
terms of the plan, or to clarify rights to future benefits 
under the terms of the plan;
``(2) by a participant, beneficiary, or fiduciary for 
relief for any loss for which a fiduciary is personally liable 
under this section; and
``(3) by a participant, beneficiary, or fiduciary--
``(A) to enjoin any act or practice which violates 
any provision of the uniform protections and fiduciary 
standards for Tribal pension plans, or
``(B) to obtain other appropriate equitable 
relief--
``(i) to redress such violations, or
``(ii) to enforce any provisions of the 
uniform protections and fiduciary standards for 
Tribal pension plans or the terms of the plan.
``(g) Status of Tribal Pension Plan as Entity.--A Tribal pension 
plan may sue or be sued under this section as an entity. Service of 
summons, subpoena, or other legal process of a court upon a trustee or 
an administrator of a Tribal pension plan in such capacity shall 
constitute service upon the Tribal pension plan. Any money judgment 
under this section against a Tribal pension plan shall be enforceable 
only against the plan as an entity and shall not be enforceable against 
any other person or entity.
``(h) Jurisdiction.--Enforcement actions related to the uniform 
protections and fiduciary standards for Tribal pension plans shall be 
in the applicable Tribal court unless the Indian tribal government has 
opted to limit Tribal court jurisdiction for such actions in favor of 
Federal court enforcement. In the absence of an established Tribal 
court, or for Indian tribal governments who have elected to limit their 
Tribal court's jurisdiction to exclude claims for enforcing the uniform 
protections and fiduciary standards for Tribal pension plans, a 
participant or beneficiary may seek enforcement in the district court 
of the United States for the district where the plan has its principal 
office, or in the United States District for the District of Columbia. 
When applicable, the district courts of the United States shall have 
jurisdiction without respect to the amount in controversy or the 
citizenship of the parties.
``(i) Attorney's Fees and Costs.--The court, in its discretion, may 
allow an award of reasonable attorney's fees and costs to a 
participant, beneficiary, or fiduciary who prevails in an action to 
enforce the uniform protections and fiduciary standards for Tribal 
pension plans.
``(j) Coordination With Other Tribal Laws and Protections.--Nothing 
in this section shall preempt or otherwise prevent an Indian Tribe from 
adopting additional laws and protections not inconsistent with this 
section.
``(k) Regulations.--The Secretary shall work with the Tribal 
Advisory Committee established pursuant to section 3 of the Tribal 
General Welfare Exclusion Act of 2014, and in consultation with Indian 
tribal governments and relevant governmental agencies, to develop 
regulatory guidance under this section, as well as the enforcement of 
such standards.''.
(2) Clerical amendment.--The table of sections for chapter 
77 of such Code is amended by adding at the end the following 
new item:

``Sec. 7531. Uniform protections and fiduciary standards for Tribal 
pension plans.''.
(d) Conforming Amendment.--The last sentence of section 3(32) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1002(32)) is amended to read as follows: ``The term `governmental plan' 
includes a plan established or maintained for its employees by an 
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.''.
(e) Effective Date.--The amendments made by this section shall 
apply to years beginning after the date of the enactment of this Act.
(f) Transition Provisions.--The Secretary of the Treasury (or the 
Secretary's delegate) shall, in consultation with the Tribal Advisory 
Committee established under section 3 of the Tribal General Welfare 
Exclusion Act of 2014 (26 U.S.C. 139E note), and in consultation with 
Indian tribal governments, develop guidance on the transition of plans 
to meet requirements added or changed by the amendments made by this 
section, including publication of transition relief if appropriate. The 
Secretary of the Treasury (or the Secretary's delegate) is authorized 
to extend deadlines imposed by the Internal Revenue Code of 1986 to 
reflect any such transition relief (and to coordinate such transition 
relief with relevant governmental agencies) as well as time for plan 
sponsors to adopt amendments and implement required changes.

SEC. 5. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE CHARITIES 
FUNDED AND CONTROLLED BY OTHER GOVERNMENTAL FUNDERS AND 
SPONSORS.

(a) In General.--Section 170(b)(1)(A) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following: ``For purposes 
of clause (vi), the term `governmental unit' includes an 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.''.
(b) Certain Supporting Organizations.--Section 509(a) of such Code 
is amended by adding at the end the following: ``For purposes of 
paragraph (3), an organization described in paragraph (2) shall be 
deemed to include an 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.''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 6. NEW MARKETS TAX CREDIT FOR TRIBAL AREA INVESTMENTS.

(a) Additional Allocations for Tribal Area.--
(1) In general.--Section 45D(f) of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
paragraph:
``(4) Additional allocations for tribal area investments.--
``(A) In general.--In the case of each calendar 
year after 2026, there is (in addition to any 
limitation under any other paragraph of this 
subsection) a new markets tribal area tax credit 
limitation of $175,000,000 which shall be allocated by 
the Secretary as provided in paragraph (2) except--
``(i) that such allocation shall only be 
allocated with respect to qualified tribal area 
investments, and
``(ii) in addition to the priorities 
described in paragraph (2), the Secretary may 
give priority to any entity with a record of 
having successfully provided capital or 
technical assistance in tribal statistical 
areas.
``(B) Carryover of unused new markets tribal area 
tax credit limitation.--
``(i) In general.--If the new markets 
tribal area tax credit limitation under 
subparagraph (A) for any calendar year exceeds 
the amount of such limitation allocated by the 
Secretary for such calendar year, such 
limitation for the succeeding calendar year 
shall be increased by the amount of such 
excess.
``(ii) Limitation on carryover.--No amount 
of new markets tribal area tax credit 
limitation may be carried under clause (i) past 
the 5th calendar year following the calendar 
year in which such amount of new markets tribal 
area tax credit limitation arose.
``(iii) Transfer of expired new markets 
tribal area tax credit limitation to general 
limitation.--In the case of any amount of new 
markets tribal area tax credit limitation which 
would (but for clause (ii)) be carried under 
clause (i) to the 6th calendar year following 
the calendar year in which such amount of new 
markets tribal area credit limitation arose, 
the new market tax credit limitation under 
paragraph (1) for such 6th calendar year shall 
be increased by the amount of such new markets 
tribal area tax credit limitation.
``(C) Allocations restricted to qualified tribal 
area investments.--For purposes of this section--
``(i) subsection (b)(2) shall be applied 
separately with respect to the new markets tax 
credit limitation under paragraph (1) and the 
new markets tribal area tax credit limitation 
under this paragraph,
``(ii) any designation under subsection 
(b)(1)(C) shall indicate the source and amount 
of the limitation to which such designation 
relates, and
``(iii) in the case of any investment which 
is designated under subsection (b)(1)(C) using 
amounts of the new market tribal area tax 
credit limitation allocated under this 
paragraph, subsection (b)(1)(B) shall be 
applied by substituting `qualified tribal area 
investments' for `qualified low-income 
community investments'.
``(D) Qualified tribal area investments.--For 
purposes of this paragraph, the term `qualified tribal 
area investment' means--
``(i) any capital or equity investment in, 
or loan to, any qualified active tribal 
community business,
``(ii) the purchase from another community 
development entity of any loan made by such 
entity which is a qualified tribal area 
investment,
``(iii) financial counseling and other 
services specified in regulations prescribed by 
the Secretary to businesses located in, and 
residents of, tribal statistical areas, and
``(iv) any equity investment in, or loan 
to, any qualified community development entity 
if substantially all of the proceeds of such 
investment or loan are used by such qualified 
community development entity to make qualified 
tribal area investments.
``(E) Qualified active tribal community business.--
For purposes of this paragraph--
``(i) In general.--The term `qualified 
active tribal community business' has the 
meaning which would be given the term 
`qualified active low-income community 
business' under subsection (d)(2) if `tribal 
statistical area' were substituted for `low-
income community' each place it appears 
therein.
``(ii) Inclusion of certain qualified 
active low-income community businesses which 
serve tribal areas.--The term `qualified active 
tribal community business' includes any 
qualified active low-income community business 
which--
``(I) provides good or services to 
a significant population of Tribal, 
Alaska Native village, or Native 
Hawaiian community members, who are 
residents of a tribal statistical area, 
and
``(II) obtains a written statement 
from one or more relevant Indian tribal 
governments (as defined in section 
7871(b)(4)(A)) (or, in the case of 
Native Hawaiian community members, the 
Department of Hawaiian Home Lands, as 
defined in section 801 of the Native 
American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 
4221)) that documents the eligibility 
of such qualified active low-income 
community business with respect to the 
requirement of subclause (I).
``(F) Tribal statistical area.--For purposes of 
this paragraph, the term `tribal statistical area' 
means any low-income community which is located in any 
area determined by the Secretary, after consultation 
with the Bureau of the Census, as a Tribal Census 
Tract, Oklahoma Tribal Statistical Area, Tribal-
Designated Statistical Area, Alaska Native Village 
Statistical Area, or Hawaiian Home Lands.''.
(2) Effective date.--The amendment made by this subsection 
shall apply to new markets tribal area tax credit limitation 
determined for calendar years after December 31, 2026.
(b) Educational and Technical Assistance Related to Qualified 
Tribal Area Investments.--Section 45D of such Code is amended by 
redesignating subsection (i) as subsection (j) and by inserting after 
subsection (h) the following new subsection:
``(i) Education and Technical Assistance Related to Investments 
With Respect to Tribal Statistical Areas.--Not later than 180 days 
after the date of the enactment of this paragraph, the Secretary, after 
consultation with the Office of Tribal and Native Affairs, the 
Community Development Financial Institutions Fund, and other 
appropriate Federal agencies, shall establish a program to provide 
educational and technical assistance to qualified community development 
entities with respect to--
``(1) applications for, and the appropriate use of--
``(A) new markets tribal area tax credit 
limitation, and
``(B) new markets tax credit limitation with 
respect to investments with respect to tribal 
statistical areas, and
``(2) in the case of any qualified community development 
entity which has been allocated limitation described in 
subparagraph (A) or (B) of paragraph (1), technical issues 
specifically associated with investments with respect to tribal 
statistical areas.''.

SEC. 7. INCLUSION OF INDIAN AREAS AS DIFFICULT DEVELOPMENT AREAS FOR 
PURPOSES OF CERTAIN BUILDINGS.

(a) In General.--Subclause (I) of section 42(d)(5)(B)(iii) of the 
Internal Revenue Code of 1986 is amended by inserting before the period 
the following: ``, and any Indian area''.
(b) Indian Area.--Clause (iii) of section 42(d)(5)(B) of such Code 
is amended by redesignating subclause (II) as subclause (IV) and by 
inserting after subclause (I) the following new subclauses:
``(II) 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))).
``(III) Special rule for buildings 
in indian areas.--In the case of an 
area which is a difficult development 
area solely because it is an Indian 
area, a building shall not be treated 
as located in such area unless such 
building is assisted or financed under 
the Native American Housing Assistance 
and Self Determination Act of 1996 (25 
U.S.C. 4101 et seq.) or the project 
sponsor is an Indian Tribe (as defined 
in section 45A(c)(6)), a tribally 
designated housing entity (as defined 
in section 4(22) of such Act (25 U.S.C. 
4103(22))), or wholly owned or 
controlled by such an Indian Tribe or 
tribally designated housing entity.''.
(c) Effective Date.--The amendments made by this section shall 
apply to buildings placed in service after December 31, 2026.

SEC. 8. TRIBAL GENERAL WELFARE AND TRUST PROGRAMS CLARIFICATION.

(a) In General.--Section 1612(b) of the Social Security Act (42 
U.S.C. 1382a(b)) is amended by striking ``; and'' at the end of 
paragraph (25), by striking the period at the end of paragraph (26) and 
inserting ``; and'', and by adding at the end the following new 
paragraph:
``(27) any Indian general welfare benefit (as defined in 
section 139E of the Internal Revenue Code of 1986).''.
(b) Exclusion From Resources.--Section 1613(a) of the Social 
Security Act (42 U.S.C. 1382b(a)) is amended by striking ``; and'' at 
the end of paragraph (16) and by inserting after paragraph (17) the 
following new paragraphs:
``(18) for the 9-month period beginning after the month in 
which received, any Indian general welfare benefit (within the 
meaning of section 139E of the Internal Revenue Code of 1986); 
and
``(19) any grantor trust established by an Indian tribe for 
the benefit of Indians and for which the Indian tribe is the 
grantor (within the meaning of subpart E of part 1 of 
subchapter J of chapter 1 of the Internal Revenue Code of 
1986).''.

SEC. 9. INDIAN EMPLOYMENT TAX CREDIT.

(a) Extension.--Section 45A of the Internal Revenue Code of 1986 is 
amended by striking subsection (f).
(b) Modification of Determination of Amount of Credit.--Paragraph 
(2) of section 45A(a) of such Code is amended to read as follows:
``(2) the quotient of--
``(A) the sum of the qualified wages and qualified 
employee health insurance costs which were paid or 
incurred by the employer (or any predecessor) during 
the two most recent calendar years ending before the 
beginning of such taxable year, divided by
``(B) 2.''.
(c) Increased Limitation.--Section 45A(b)(3) of such Code is 
amended by striking ``$20,000'' and inserting ``$30,000''.
(d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2026.

SEC. 10. EXCLUSION FROM GROSS INCOME FOR PAYMENTS UNDER INDIAN HEALTH 
SERVICE LOAN REPAYMENT PROGRAM.

(a) In General.--Paragraph (4) of section 108(f) of the Internal 
Revenue Code of 1986 is amended by inserting ``under section 108 of the 
Indian Health Care Improvement Act,'' after ``338I of such Act,''.
(b) Clerical Amendment.--The heading for section 108(f)(4) of such 
Code is amended by inserting ``, indian health service loan repayment 
program,'' before ``and certain''.
(c) Effective Date.--The amendments made by this section shall 
apply to payments made after the date of the enactment of this Act.

SEC. 11. EXCLUSION OF CERTAIN AMOUNTS RECEIVED UNDER INDIAN HEALTH 
PROFESSIONS SCHOLARSHIPS PROGRAM.

(a) In General.--Paragraph (2) of section 117(c) of the Internal 
Revenue Code of 1986 is amended by striking ``or'' at the end of 
subparagraph (B), by striking the period at the end of subparagraph (C) 
and inserting ``, or'', and by adding at the end the following new 
subparagraph:
``(D) the Indian Health Professions Scholarships 
Program under section 104 of the Indian Health Care 
Improvement Act.''.
(b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts received in taxable years beginning after December 31, 
2026.
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