[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3043 Enrolled Bill (ENR)]
H.R.3043
One Hundred Thirteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and fourteen
An Act
To amend the Internal Revenue Code of 1986 to clarify the treatment of
general welfare benefits provided by Indian tribes.
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 General Welfare Exclusion Act
of 2014''.
SEC. 2. INDIAN GENERAL WELFARE BENEFITS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting before section
140 the following new section:
``SEC. 139E. INDIAN GENERAL WELFARE BENEFITS.
``(a) In General.--Gross income does not include the value of any
Indian general welfare benefit.
``(b) Indian General Welfare Benefit.--For purposes of this
section, the term `Indian general welfare benefit' includes any payment
made or services provided to or on behalf of a member of an Indian
tribe (or any spouse or dependent of such a member) pursuant to an
Indian tribal government program, but only if--
``(1) the program is administered under specified guidelines
and does not discriminate in favor of members of the governing body
of the tribe, and
``(2) the benefits provided under such program--
``(A) are available to any tribal member who meets such
guidelines,
``(B) are for the promotion of general welfare,
``(C) are not lavish or extravagant, and
``(D) are not compensation for services.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Indian tribal government.--For purposes of this section,
the term `Indian tribal government' includes any agencies or
instrumentalities of an Indian tribal government and any Alaska
Native regional or village corporation, as defined in, or
established pursuant to, the Alaska Native Claims Settlement Act
(43 U.S.C. 1601, et seq.).
``(2) Dependent.--The term `dependent' has the meaning given
such term by section 152, determined without regard to subsections
(b)(1), (b)(2), and (d)(1)(B).
``(3) Lavish or extravagant.--The Secretary shall, in
consultation with the Tribal Advisory Committee (as established
under section 3(a) of the Tribal General Welfare Exclusion Act of
2013), establish guidelines for what constitutes lavish or
extravagant benefits with respect to Indian tribal government
programs.
``(4) Establishment of tribal government program.--A program
shall not fail to be treated as an Indian tribal government program
solely by reason of the program being established by tribal custom
or government practice.
``(5) Ceremonial activities.--Any items of cultural
significance, reimbursement of costs, or cash honorarium for
participation in cultural or ceremonial activities for the
transmission of tribal culture shall not be treated as compensation
for services.''.
(b) Conforming Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting before
the item relating to section 140 the following new item:
``Sec. 139E. Indian general welfare benefits.''.
(c) Statutory Construction.--Ambiguities in section 139E of such
Code, as added by this Act, shall be resolved in favor of Indian tribal
governments and deference shall be given to Indian tribal governments
for the programs administered and authorized by the tribe to benefit
the general welfare of the tribal community.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years for which the period of limitation on refund
or credit under section 6511 of the Internal Revenue Code of 1986
has not expired.
(2) One-year waiver of statute of limitations.--If the period
of limitation on a credit or refund resulting from the amendments
made by subsection (a) expires before the end of the 1-year period
beginning on the date of the enactment of this Act, refund or
credit of such overpayment (to the extent attributable to such
amendments) may, nevertheless, be made or allowed if claim therefor
is filed before the close of such 1-year period.
SEC. 3. TRIBAL ADVISORY COMMITTEE.
(a) Establishment.--The Secretary of the Treasury shall establish a
Tribal Advisory Committee (hereinafter in this subsection referred to
as the ``Committee'').
(b) Duties.--
(1) Implementation.--The Committee shall advise the Secretary
on matters relating to the taxation of Indians.
(2) Education and training.--The Secretary shall, in
consultation with the Committee, establish and require--
(A) training and education for internal revenue field
agents who administer and enforce internal revenue laws with
respect to Indian tribes on Federal Indian law and the Federal
Government's unique legal treaty and trust relationship with
Indian tribal governments, and
(B) training of such internal revenue field agents, and
provision of training and technical assistance to tribal
financial officers, about implementation of this Act and the
amendments made thereby.
(c) Membership.--
(1) In general.--The Committee shall be composed of 7 members
appointed as follows:
(A) Three members appointed by the Secretary of the
Treasury.
(B) One member appointed by the Chairman, and one member
appointed by the Ranking Member, of the Committee on Ways and
Means of the House of Representatives.
(C) One member appointed by the Chairman, and one member
appointed by the Ranking Member, of the Committee on Finance of
the Senate.
(2) Term.--
(A) In general.--Except as provided in subparagraph (B),
each member's term shall be 4 years.
(B) Initial staggering.--The first appointments made by the
Secretary under paragraph (1)(A) shall be for a term of 2
years.
SEC. 4. OTHER RELIEF FOR INDIAN TRIBES.
(a) Temporary Suspension of Examinations.--The Secretary of the
Treasury shall suspend all audits and examinations of Indian tribal
governments and members of Indian tribes (or any spouse or dependent of
such a member), to the extent such an audit or examination relates to
the exclusion of a payment or benefit from an Indian tribal government
under the general welfare exclusion, until the education and training
prescribed by section 3(b)(2) of this Act is completed. The running of
any period of limitations under section 6501 of the Internal Revenue
Code of 1986 with respect to Indian tribal governments and members of
Indian tribes shall be suspended during the period during which audits
and examinations are suspended under the preceding sentence.
(b) Waiver of Penalties and Interest.--The Secretary of the
Treasury may waive any interest and penalties imposed under such Code
on any Indian tribal government or member of an Indian tribe (or any
spouse or dependent of such a member) to the extent such interest and
penalties relate to excluding a payment or benefit from gross income
under the general welfare exclusion.
(c) Definitions.--For purposes of this subsection--
(1) Indian tribal government.--The term ``Indian tribal
government'' shall have the meaning given such term by section 139E
of such Code, as added by this Act.
(2) Indian tribe.--The term ``Indian tribe'' shall have the
meaning given such term by section 45A(c)(6) of such Code.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.