[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.