[Congressional Record Volume 159, Number 179 (Tuesday, December 17, 2013)]
[Senate]
[Pages S8915-S8916]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INHOFE:
  S. 1834. A bill to amend the Internal Revenue Code of 1986 to 
permanently extend the depreciation rules for property used 
predominantly within an Indian reservation; to the Committee on 
Finance.
  Mr. INHOFE. Mr. President, I would like to bring to your attention a 
bill I am reintroducing that would make permanent the current tax 
provision that allows capital assets on Indian lands to be depreciated 
on an accelerated schedule.
  For many years, the Federal tax code has provided an incentive for 
businesses to invest in operations on Indian reservations and lands 
across the country. According to the law, businesses that purchase 
capital equipment and use it on Indian lands will be able to depreciate 
it, on average, more than 40 percent faster than would otherwise be 
allowed.
  This tax provision is important to Oklahoma because of our 
longstanding history and unique relationship with Indian tribes. With 
our sluggish economy, we need to do all we can to encourage businesses 
to reinvest in and expand their operations, as this will create 
sustainable job growth.
  The accelerated depreciation schedule gives businesses the 
opportunity to recover investment dollars in capital assets more 
rapidly. This frees money that would have been tied up in the value of 
their capital assets, such as buildings, equipment, and machinery and 
enables companies to reinvest it more quickly than was available with a 
slower depreciation schedule.
  The Oklahoma Department of Commerce has reported that many companies 
attribute this provision as a key reason for relocating to and 
expanding within the State. One Oklahoma food processing plant manager 
stated that the credit was a significant factor in the company's 
decision to expand.
  Additionally, today's announcement by Macy's, Inc. to locate a new, 
world class online processing center in Tulsa was justified in part by 
the Indian lands tax provision. This new 1.3 million square feet 
facility will employ

[[Page S8916]]

1,100 people full time and will expand to 2,500 people during peak 
periods. Construction on this project will begin in 2014, and the 
facility will open for business in 2015. I could not be more excited by 
Macy's decision to expand its operations in Oklahoma. It is a testament 
to Oklahoma's strong, business friendly culture and capable work force.
  Although the accelerated schedule is currently allowed, the law 
states it will expire at the end of this year. The provision has 
typically been renewed each year, but many business leaders have 
expressed concern that it is not permanent, including the executives of 
Macy's.
  As a former businessman, I understand the problem of unpredictability 
and so do Oklahoma's business leaders who have expressed frustration 
over dramatically changing government policies ranging from 
environmental regulations to the tax code. This kind of environment 
makes it difficult for businesses to proceed with investment decisions. 
Businesses need stability, and this is particularly true during times 
of economic weakness. We in Congress should take this point seriously, 
and take a step in the right direction by making permanent this 
important tax provision.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1834

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. PERMANENT EXTENSION OF DEPRECIATION RULES FOR 
                   PROPERTY ON INDIAN RESERVATIONS.

       (a) In General.--Subsection (j) of section 168 of the 
     Internal Revenue Code of 1986 is amended by striking 
     paragraph (8).
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2013.
                                 ______