    [United States Statutes at Large, Volume 128, 113th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 113-168
    113th Congress

    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

    [[Page 1884]]

    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.--

    [[Page 1885]]

    (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.

    [[Page 1886]]

    (2) Indian tribe.--The term ``Indian tribe'' shall have the
    meaning given such term by section 45A(c)(6) of such Code.

    Approved September 26, 2014.

    LEGISLATIVE HISTORY--H.R. 3043:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 160 (2014):
    Sept. 16, considered and passed House.
    Sept. 18, considered and passed Senate.