S. 2012Senate115th Congress (2017-2019)In Committee

Tribal Economic Assistance Act of 2017

Introduced October 25, 2017

AI-Generated Summary

Updated April 15, 2026 at 6:42 PM UTC

The Tribal Economic Assistance Act of 2017 updates the tax code to give lasting tax benefits to Indian tribes and their businesses. It makes the Indian Employment Credit and special depreciation rules permanent, lets tribes issue bonds like states, gives priority to low‑income community investments on reservations under the New Markets Tax Credit, and creates a federal escrow account to support school construction bonds on reservations.

Key Provisions

  • Removes the “essential governmental function” requirement, allowing tribes to issue bonds as if they were states.
  • Permanently extends the Indian Employment Credit by deleting its expiration language, applying to tax years after 2016.
  • Makes accelerated depreciation for business property on Indian reservations permanent by removing the temporary provision.
  • Adds a priority provision for qualified low‑income community investments on reservations under the New Markets Tax Credit, including new definitions for reservation, tribe, and economic enterprise.
  • Authorizes the Secretary of the Interior to establish a federal escrow account to fund qualified Indian school construction bonds, outlining how funds are deposited, managed, and used.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

October 25, 2017

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SenateIntro Referral

Introduced in Senate

October 25, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance.

October 25, 2017

Floor Debate

10 members

What members said about S. 2012 on the floor

5 Republicans5 Democrats
Randy K. Weber, Sr.
Rep. Randy K. Weber, Sr.R-TX-14 · Sep 13, 2018

Mr. Speaker, I move to suspend the rules and pass the bill (S. 97) to enable civilian research and development of advanced nuclear energy technologies by private and public institutions, to expand…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Mar 27, 2017

Mr. President, I speak on behalf of myself and Senator Harris to reintroduce legislation to establish the Sacramento- San Joaquin Delta National Heritage Area, California's first National Heritage…

Lamar Smith
Rep. Lamar SmithR-TX-21 · Sep 13, 2018

Mr. Speaker, I thank the gentleman from Texas (Mr. Weber) for yielding me time. Mr. Speaker, S. 97, the Nuclear Energy Innovation Capabilities Act, directs the Department of Energy to enable the…

Greg Walden
Rep. Greg WaldenR-OR-2 · Feb 27, 2017

Mr. Speaker and Ranking Member Torres, thank you for bringing this legislation to the floor once again. I want to elaborate a little bit on what my friend and colleague from Portland talked about. It…

Tom McClintock
Rep. Tom McClintockR-CA-4 · Feb 27, 2017

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 699) to amend the Omnibus Public Land Management Act of 2009 to modify provisions relating to certain land exchanges in the Mt. Hood…

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Earl Blumenauer
Rep. Earl BlumenauerD-OR-3 · Feb 27, 2017

Mr. Speaker, it is a pleasure to be on the floor here this afternoon with my friend and colleague, Congressman Walden, who is going to talk at great length--maybe not, but he could. This represents,…

Eddie Bernice Johnson
Rep. Eddie Bernice JohnsonD-TX-30 · Sep 13, 2018

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise today to support S. 97, the Nuclear Energy Innovation Capabilities Act. It is the Senate companion to H.R. 431, which I am…

Norma J. Torres
Rep. Norma J. TorresD-CA-35 · Feb 27, 2017

Mr. Speaker, I yield 4 minutes to the gentleman from Oregon (Mr. Blumenauer). Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, H.R. 699 clarifies the terms of the land exchange…

Tim Kaine
Sen. Tim KaineD-VA · Mar 27, 2017

Mr. President, today I am introducing a bipartisan, noncontroversial, technical provision pertaining to two proposed hydroelectric projects at U.S. Army Corps of Engineers dams in Virginia. This bill…

Mitch McConnell
Sen. Mitch McConnellR-KY · Mar 27, 2017

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued October 25, 2017

II

115th CONGRESS

1st Session

S. 2012

IN THE SENATE OF THE UNITED STATES

October 25, 2017

Mr. Hoeven (for himself, Ms. Murkowski, and Ms. Heitkamp) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to make permanent the Indian Employment Credit and the depreciation rules for business property on Indian reservations, and for other purposes.

1.

Short title

This Act may be cited as the Tribal Economic Assistance Act of 2017.

2.

Treatment of Indian Tribes as States with respect to bond issuance

(a)

Repeal of essential governmental function requirement

Section 7871 of the Internal Revenue Code of 1986 is amended by striking subsections (b) and (e).

(b)

Effective date

The amendments made by this section shall apply to transactions after, and obligations issued in calendar years beginning after, the date of the enactment of this Act.

3.

Making permanent the Indian Employment Credit and deprecation rules for business property on Indian reservations

(a)

Indian employment credit

(1)

In general

Section 45A of the Internal Revenue Code of 1986 is amended by striking subsection (f).

(2)

Effective date

The amendment made by this subsection shall apply to taxable years beginning after December 31, 2016.

(b)

Accelerated Depreciation for Business Property on an Indian Reservation

(1)

In general

Section 168(j) of the Internal Revenue Code of 1986 is amended by striking paragraph (9).

(c)

Effective date

The amendment made by this subsection shall apply to property placed in service after December 31, 2016.

4.

Priority under New Markets Tax Credit for qualified low-income community investments on Indian reservations

(a)

In general

Subsection (f) of section 45D of the Internal Revenue Code of 1986 is amended—

(1)

in paragraph (2)—

(A)

in subparagraph (A), by striking or at the end;

(B)

in subparagraph (B), by striking the period and inserting , or; and

(C)

by adding at the end the following new subparagraph:

(C)

which intends to make qualified low-income community investments within a reservation, including any such entity established by a tribe or an economic enterprise which intends to make such investments within a reservation.

; and

(2)

by adding at the end the following new paragraph:

(4)

Definitions

For purposes of subparagraph (C) of paragraph (2), the terms reservation, tribe, and economic enterprise shall have the same meanings given such terms under section 3 of the Indian Financing Act of 1974 (25 U.S.C. 1452).

.

(b)

Effective date

The amendments made by this section shall apply to calendar years beginning after December 31, 2017.

5.

Authorization to establish qualified Indian school construction bond escrow account

(a)

Authorization To establish qualified Indian school construction bond escrow account

(1)

In general

Part B of title II of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5351) is amended by adding at the end the following:

204A.

Authorization to establish qualified Indian school construction bond escrow account

(a)

Definitions

In this section:

(1)

Federal escrow account

The term Federal escrow account means the qualified Indian school construction bond escrow account established under subsection (b).

(2)

Qualified Indian school construction bond

The term qualified Indian school construction bond means a bond for which the Secretary of the Interior has provided an allocation pursuant to the authority provided to the Secretary under section 54F(d)(4) of the Internal Revenue Code.

(3)

Secretary

The term Secretary means the Secretary of the Interior.

(b)

In general

Pursuant to the authority granted under section 54F(d)(4) of the Internal Revenue Code of 1986, the Secretary shall establish a Federal qualified Indian school construction bond escrow account for the purpose of implementing such section.

(c)

Use of escrow account

The Secretary shall use amounts available under the Federal escrow account to carry out a qualified Indian school construction bond program for schools funded by the Bureau of Indian Affairs, through which—

(1)

the Secretary shall approve qualified school construction bonds to the extent that amounts are available in the Federal escrow account to support the bonds pursuant to paragraph (2);

(2)

upon the Secretary's approval of a request for a qualified school construction bond, the Secretary shall deposit, from amounts available in the Federal escrow account, the amount described in paragraph (4) in an individual bond escrow account that shall be managed for such qualified school construction bond;

(3)

the funds for the individual bond escrow account shall be held by the Federal Government or in an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), and shall be invested in appropriate Treasury securities; and

(4)

the amount of the funds provided for the individual bond escrow account shall be an amount sufficient to repay the face value of the bond in a 15-year period, based on the investment required under paragraph (3).

(d)

Transfer to escrow account

(1)

In general

The Secretary shall deposit in the Federal escrow account such sums as are made available to implement this section and section 54F(d)(4) of the Internal Revenue Code of 1986.

(2)

Other funds

The Secretary may accept and deposit in the Federal escrow account amounts received to carry out this section from any other source, including Federal agencies, non-Federal public agencies, Indian Tribes, nonprofit organizations, and private sector entities.

.

(2)

Conforming amendments

Section 204 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5351) is amended by striking this part B each place the term appears and inserting this section.

(b)

Use of bonds for reasonable and necessary preconstruction costs

Section 54F(d)(4) of the Internal Revenue Code of 1986 is amended by striking Affairs. and inserting Affairs, which may include paying the reasonable and necessary predevelopment costs directly associated with such construction, rehabilitation, or repair..