Commentary

Congress Back from Summer Recess: Has Unfinished Indian Country Business

Levi Rickert, editor-in-chief in Native Condition. Discussion »

Congress returns to Washington today after being off for five weeks.

Congress should be greeted with letters, emails and faxes by American Indians from across Indian country proclaiming our dismay that Congress has allowed several tax incentives designed to attract private development and jobs in Indian country to expire. Still others are slated to expire unless Congress acts.

American Indians from across Indian country proclaiming our dismay.

Here is a list that should be brought to the representatives and senators about this unfinished business that greatly negatively impacts Indian country:

The Accelerated Depreciation Program, which allows manufacturers with facilities in Indian country to use shorter recovery periods when calculating depreciation deductions for production equipment, has been unavailable since January 1. Legislation has been introduced that would reauthorize the provision until 2014. S 3521, 112th Cong. § 211 (2012); HR 6240, 112th Cong. § 201 (2012).
The Indian Employment Tax Credit, which provides businesses with an incentive to hire individuals who are enrolled members of an Indian tribe (or the spouse of an enrolled member) and who live on or near an Indian reservation, expired on December 31, 2011. Legislation has been introduced that would retroactively extend the program to December 31, 2013. S 3521, 112th Cong. § 204 (2012).
The Low-Income Housing Tax Credit Program, through which tax credits are available for low-income housing projects on homes that that were constructed, rehabilitated or acquired since 1986, including those in Indian country, are currently available until only September 30, 2011. Legislation has been introduced to extend the credits to January 1, 2014. S 3521, 112th Cong. § 203 (2012).
The Work Opportunity Tax Credit, a federal tax credit incentive for private sector businesses that hire individuals from twelve target groups who have consistently faced significant barriers to employment, including certain Indians, expired in 2011. Legislation has been introduced that would extend the WOTC to December 31, 2013. S 3521, 112th Cong. § 209 (2012).

Unless these tax incentives are extended, tribal governments' ability to attract private capital and create new jobs for tribal members and neighboring communities will be greatly diminished.

Large reservations, such as the Navajo Nation and Pine Ridge Indian Reservation, year after year report more than half of their citizens are unemployed. On some smaller reservations, over 80 percent of their tribal residents are unemployed.

Indian country needs the tax incentives to attract private capital and jobs.

In a Guest Commentary published by this publication last Friday, Attorney Gabriel Galanda writes:

“Indian country must speak out against the expiration of federal Indian country tax incentives, and about being marginalized by both parties in the national tax policy debate. If politicians really care about the Native vote and the well-being of Indians, they should put their money where their mouths are, in the form of federal and other tax relief for Indian country.”

The Native News Network concurs with Galanda. Please forward this Commentary on to your representative and senators today.

posted September 10, 2012 9:30 am edt