Sec. 8. New markets tax credit for tribal area investments
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Section 45D(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: In the case of each calendar year after 2024, 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— that such allocation shall only be allocated with respect to qualified tribal area investments, and 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. 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. 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. 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. In the case of any new markets tribal area tax credit limitation— subsection (b)(1)(B) shall be applied by substituting qualified tribal area investments for qualified low-income community investments , and subsections (b)(2) and (g)(3)(B) shall be applied separately with respect to such limitation. For purposes of this paragraph, the term qualified tribal area investment means— any capital or equity investment in, or loan to, any qualified active tribal community business, the purchase from another community development entity of any loan made by such entity which is a qualified tribal area investment, financial counseling and other services specified in regulations prescribed by the Secretary to businesses located in, and residents of, tribal statistical areas, and 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. For purposes of this paragraph— 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. The term qualified active tribal community business includes any qualified active low-income community business which— 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 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). 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. . The amendment made by this subsection shall apply to new markets tribal area tax credit limitation determined for calendar years after December 31, 2024. Section 45D of such Code is amended by redesignating subsection
(i)as subsection
(j)and by inserting after subsection
(h)the following new subsection: 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— applications for, and the appropriate use of— new markets tribal area tax credit limitation, and new markets tax credit limitation with respect to investments with respect to tribal statistical areas, and 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. .
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Sec. 8
New markets tax credit for tribal area investments
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