Treatment of Indian tribes as States with respect to excise taxes and bond issuance

(a) Repeal of essential governmental function requirements Section 7871 of the Internal Revenue Code of 1986 is amended by striking subsections (b) and (e) and redesignating subsections (c), (d), and (f) as subsections (b), (c), and (d), respectively. (b) Special rules for tax-Exempt bonds (1) In general (A) Application of private activity bond rules Subsection (b) of section 7871 of such Code, as redesignated by subsection (a), is amended to read as follows: (b) Special rules for tax-Exempt bonds (1) Volume cap (A) In general In applying section 146 to bonds issued by Indian Tribal Governments— (i) there shall be a national bond volume cap for each calendar year equal to $400,000,000, and (ii) the volume cap for any Indian Tribal Government shall be the portion of such national bond volume cap which is allocated by the Secretary (under such regulations as the Secretary may prescribe) to such Indian Tribal Government. (B) Inflation adjustment In the case of a calendar year after 2026, the $400,000,000 amount in subparagraph (A)(i)shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase determined under the preceding sentence is not a multiple of $100,000, such increase shall be rounded to the nearest multiple of $100,000. (2) Application of geographic restriction In the case of national bond volume cap allocated under paragraph (1), section 146(k)(1) shall not apply to the extent that such cap is used with respect to financing for a facility located on qualified Indian lands. (3) Restriction on financing of certain gaming facilities No portion of proceeds from an obligation issued by an Indian Tribal Government (or subdivision thereof) under section 103 may be used with respect to the financing of any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act (25 U.S.C. 2703)) is conducted or housed or any property actually used in the conduct of such gaming. (4) Definitions and special rules For purposes of this subsection— (A) Indian Tribal Government The term Indian Tribal Government means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131). (B) Intertribal consortia, etc Under regulations prescribed by the Secretary, an Indian Tribal Government (or a partnership of Indian Tribal Governments) may authorize an intertribal consortium, an organization, or a Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation (as defined in, or established pursuant to, the Alaska Native Claims Settlement Act), to plan for, coordinate or otherwise administer services, finances, functions, or activities on its behalf under this subsection, except that the authorized entity shall have the rights and responsibilities of the authorizing Indian Tribal Government (or Indian Tribal Governments) only to the extent provided in the authorizing resolution. (C) Qualified Indian lands The term qualified Indian lands means— (i) Indian lands within the meaning of section 29(j)(8) of the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3722b(j)(8)), (ii) land held in fee simple by an Indian Tribal Government, (iii) any land located within a region established pursuant to section 7(a) of the Alaska Native Claims Settlement Act (43 U.S.C. 1606(a)), (iv) Hawai‘ian Home Lands (as defined in section 801 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4221)), and (v) under regulations prescribed by the Secretary, lands where the facility is to be placed in service in connection with— (I) the active conduct of a trade or business by an Indian Tribe on, contiguous to, within reasonable proximity of, or with a substantial connection to lands described in clause (i), (ii), (iii), or (iv), or (II) infrastructure (including roads, power lines, water systems, railroad spurs, and communication facilities) serving lands described in clause (i), (ii), (iii), or (iv).. (B) Conforming amendments (i) Section 7871(a) of such Code is amended— (I) in paragraph (2) by striking subject to subsection (b),, and (II) in paragraph (4) by striking subsection (c) and inserting subsection (b). (ii) Subparagraph (B) of section 45(c)(9) of such Code is amended to read as follows: (B) Indian tribe For purposes of this paragraph, the term Indian tribe means any Indian Tribe, band, nation, or other organized group or community which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.. (2) Alaska Native Corporation economic development bonds (A) In general Section 7871 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended by inserting at the end the following new subsection: (e) Alaska Native Corporation economic development bonds (1) National limitation (A) In general There is a national Alaska Native Corporation economic development bond limitation for each calendar year. Such limitation shall be equal to the amount $45,000,000. (B) Inflation adjustment In the case of a calendar year after 2026, the $45,000,000 amount in subparagraph (A) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase determined under the preceding sentence is not a multiple of $100,000, such increase shall be rounded to the nearest multiple of $100,000. (C) Allocation (i) In general The Secretary shall allocate the national Alaska Native Corporation economic development bond limitation among the Alaska Native Corporations selected by the Secretary, in consultation with the Secretary of the Interior. (ii) Eligibility The Secretary shall not make any allocation under clause (i) to an Alaska Native Corporation unless such Alaska Native corporation provides the Secretary with a written certification that any project undertaken using the proceeds of an Alaska Native Corporation economic development bond will promote the economic, social, or cultural well-being of the corporation’s shareholders. (2) Bonds treated as exempt from tax In the case of an Alaska Native Corporation economic development bond— (A) such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State, (B) the Alaska Native Corporation issuing such bond shall be treated as a State for purposes of section 141, and (C) section 146 shall not apply. (3) Alaska Native Corporation economic development bond (A) In general For purposes of this section, the term Alaska Native Corporation economic development bond means any bond issued by an Alaska Native Corporation— (i) the interest on which would be exempt from tax under section 103 if issued by a State or local government, (ii) substantially all of the net proceeds of which are used— (I) with respect to facilities on land located within a region established pursuant to section 7(a) of the Alaska Native Claims Settlement Act (43 U.S.C. 1606(a)), or (II) to provide facilities within Alaska or services to residents of Alaska, (iii) none of the net proceeds of which are used for any project or activity if the proceeds of a bond to which subsection (b) applies has also been used for such project or activity, and (iv) which is designated by the Alaska Native Corporation as an Alaska Native Corporation economic development bond for purposes of this subsection. (B) Exceptions Such term shall not include any bond issued as part of an issue if any portion of the proceeds of such issue are used to finance— (i) any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or (ii) any portion of the proceeds of such issue is to be used to provide (including the provision of land for) any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, racetrack or other facility used for gambling, or any store the principal business of which is the sale of alcoholic beverages for consumption off premises. (C) Limitation on amount of bonds designated The maximum aggregate face amount of bonds which may be designated by any Alaska Native Corporation under subparagraph (A) shall not exceed the amount of national Alaska Native Corporation economic development bond limitation allocated to such corporation under paragraph (1). (4) Alaska Native corporation For purposes of this subsection, the term Alaska Native Corporation means any Regional Corporation, any Village Corporation, any Urban Corporation, and any Group Corporation (as such terms are defined in section 3 of the Alaska Native Claims Settlement Act).. (B) Termination of Tribal economic development bonds Section 7871(d)(3), as redesignated by subsection (a), is amended by adding at the end the following new subparagraph: (D) Termination No bond which is issued after December 31, 2028, may be designated as a tribal economic bond under subparagraph (A).. (c) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to obligations issued in calendar years beginning after the date of the enactment of this Act. (2) Excise taxes The amendments made by subsections (a) and (b)(1)(B)(i)(I) shall take effect on and after the first day of the first calendar quarter beginning more than 60 days after the date of the enactment of this Act.