Sec. 3. Treatment of Indian tribes as States with respect to excise taxes and bond issuance
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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. Subsection
(b)of section 7871 of such Code, as redesignated by subsection (a), is amended to read as follows: In applying section 146 to bonds issued by Indian Tribal Governments— there shall be a national bond volume cap for each calendar year after 2026 equal to $400,000,000, and 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. 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. 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. 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. For purposes of this subsection, the term qualified Indian lands means— 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) ), land held in fee simple by an Indian Tribal Government, each region in effect under subsection
(a)or
(b)of section 7 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1606 ), 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 under regulations prescribed by the Secretary, lands where the facility is to be placed in service in connection with— 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 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. 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. 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— such dollar amount, multiplied by 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. . Section 7871 of such Code, as amended by subsection (a), is amended by adding at the end the following new subsection: In the case of an Alaska Native Intertribal Consortium tax-exempt bond— 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 in applying section 146 to any issuer of such bond— there shall be a national bond volume cap for each calendar year after 2026 equal to $45,000,000, and 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. For purposes of this section— The term Alaska Native Intertribal Consortium tax-exempt bond means any bond issued by an Alaska Native Intertribal Consortium if— such bond is a qualified bond (as defined in section 141(e), determined without regard to paragraph
(2)thereof), 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 such bond is designated as an Alaska Native Intertribal Consortium tax-exempt bond by such Alaska Native Intertribal Consortium. The term Alaska Native Intertribal Consortium tax-exempt bond shall not include any bond issued as part of an issue if— 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 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. 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). For purposes of this subsection— The term Alaska Native Intertribal Consortium means— any combination of Alaska Native Tribal Governments operating pursuant to a written agreement, and any Alaska Native regional non-profit organization. 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 ). The term Alaska Native regional non-profit organization means— the Aleutian Pribilof Islands Association, Inc., the Arctic Slope Native Association, the Association of Village Council Presidents, the Bristol Bay Native Association, the Chugachmiut, Inc., the Cook Inlet Tribal Council, the Copper River Native Association, the Kawerak, Inc., the Kodiak Area Native Association, the Maniilaq, the Tanana Chiefs Conference, the Alaska Native Tribal Health Consortium, the Bristol Bay Area Health Corporation, the Norton Sound Health Corporation, the Southeast Alaska Regional Health Consortium, the Yukon Kuskokwim Health Corporation, and 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. 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). 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. ). For purposes of subparagraph (A), an Alaska Native Corporation shall be treated as participating with respect to any bond if such Corporation— is part of any Alaska Native regional non-profit organization which is part of the Alaska Native Intertribal Consortium that issues such bond, is authorized pursuant to paragraph
(4)to provide any service described in subsection (b)(4)(C) with respect to such bond, or receives any of the proceeds of such bond. 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 )). 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— such dollar amount, multiplied by 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. . Section 7871(d)(3) of such Code, as amended by subsection (a), is amended by adding at the end the following new subparagraph: For purposes of this section, the term tribal economic development bond shall not include any bond issued after December 31, 2029. . Section 7871(a) of such Code is amended— in paragraph
(2)by striking subject to subsection (b), , and in paragraph
(4)by striking subsection
(c)and inserting subsection
(b). Section 45(c)(9)(B) of such Code is amended to read as follows: 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. . 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. 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.
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Sec. 3
Treatment of Indian tribes as States with respect to excise taxes and bond issuance
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