[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4333 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 4333
To amend the Internal Revenue Code of 1986 to modify the rules for
tribal economic development bonds.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 28, 2020
Ms. Murkowski (for herself and Mr. Sullivan) 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 modify the rules for
tribal economic development bonds.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Tribal Economic Development Act of
2020''.
SEC. 2. MODIFICATIONS RELATED TO TRIBAL ECONOMIC DEVELOPMENT BONDS.
(a) Increase in National Limitation.--Subparagraph (B) of section
7871(f)(1) of the Internal Revenue Code of 1986 is amended by striking
``$2,000,000,000'' and inserting ``$4,000,000,000.''
(b) Other Modifications.--
(1) In general.--Paragraph (2) of section 7871(f) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(2) Bonds treated as exempt from tax.--Notwithstanding
any other provision of this title, gross income shall not
include interest on any tribal economic development bond.''.
(2) Modification of definition of tribal economic
development bond.--Section 7871(f)(3) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(3) Tribal economic development bond.--
``(A) In general.--For purposes of this section,
the term `tribal economic development bond' means any
bond issued by an Indian tribal government (or a
subdivision thereof)--
``(i) which is part of an issue 95 percent
or more of the proceeds of which are to be
used--
``(I) by a qualified Native user,
and
``(II) to promote the economic
development of any Indian tribe or
Native Corporation (including through
loans by any Indian tribal government
or a subdivision thereof to a qualified
Native user),
``(ii) except as provided in subparagraph
(D), which is not an arbitrage bond (within the
meaning of section 148),
``(iii) which meets the applicable
requirements of section 149 (other than
subsections (b), (d), and (g) thereof), and
``(iv) which is designated by the Indian
tribal government as a tribal economic
development bond for purposes of this
subsection.
``(B) Exception.--Such term 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.
``(C) Limitation on amount of bonds designated.--
The maximum aggregate face amount of bonds which may be
designated by any Indian tribal government under
subparagraph (A) shall not exceed the amount of
national tribal economic development bond limitation
allocated to such government under paragraph (1).
``(D) Loans to qualified native users permitted.--
``(i) In general.--For purposes of applying
section 148 to this paragraph, the term
`arbitrage bond' shall not include a bond
issued as part of an issue the proceeds of
which are used to provide a loan described in
clause (ii) to a qualified Native user
notwithstanding whether the interest rate on
such loan produces a yield which is higher than
the yield on such issue.
``(ii) Loan described.--A loan is described
in this clause if the terms of the loan prevent
the borrower of such loan from making further
loans with the proceeds of such loan.
``(E) Qualified native user.--For purposes of this
paragraph, the term `qualified Native user' means--
``(i) an Indian tribal government (or a
subdivision thereof),
``(ii) a Native Corporation, or
``(iii) any other entity if--
``(I) in the case of a corporation,
not less than two-thirds of the
outstanding stock are owned by one or
more entities described in clauses (i)
or (ii), and
``(II) in the case of any entity
other than a corporation, not less than
two-thirds of the capital and profits
interests are owned by one or more
entities described in clauses (i) or
(ii).
``(F) Other definitions.--For purposes of this
paragraph--
``(i) Native corporation.--The term `Native
Corporation' has the meaning given such term
under section 646(h)(2).
``(ii) Indian tribe.--The term `Indian
tribe' has the meaning given such term under
subsection (c)(3)(E)(ii).
``(G) Coordination with third-party repayment,
etc.--A bond shall not fail to be treated as a tribal
economic development bond solely because a person other
than the Indian tribal government (or subdivision
thereof) issuing the bond has guaranteed the repayment
of, is otherwise obligated to repay, or in fact repays,
any portion of the principal or interest of such
bond.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
<all>
Tribal Economic Development Act of 2020
#4333 | S Congress #116
Policy Area: Taxation
Subjects: Alaska Natives and HawaiiansBusiness investment and capitalCommunity life and organizationCorporate finance and managementEconomic developmentGamblingGovernment lending and loan guaranteesHousing and community development fundingIndian social and development programsSecuritiesState and local taxation
Last Action: Read twice and referred to the Committee on Finance. (7/28/2020)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text