Inclusion of Indian areas as difficult development areas for purposes of certain buildings

(a) In general Subclause (I) of section 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is amended by inserting before the period the following:, and any Indian area. (b) Indian area Clause (iii) of section 42(d)(5)(B) of the Internal Revenue Code of 1986 is amended by redesignating subclause (II) as subclause (IV) and by inserting after subclause (I) the following new subclauses: (II) Indian area For purposes of subclause (I), the term Indian area means— (aa) any Indian area (as defined in section 4(11) of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103(11))), and (bb) any housing area (as defined in section 801(5) of such Act (25 U.S.C. 4221(5))). (III) Special rule for buildings in Indian areas In the case of an area which is a difficult development area solely because it is an Indian area, a building shall not be treated as located in such area unless such building is assisted or financed under the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.) or the project sponsor is an Indian tribe (as defined in section 45A(c)(6)), a tribally designated housing entity (as defined in section 4(22) of such Act (25 U.S.C. 4103(22))), or wholly owned or controlled by such an Indian tribe or tribally designated housing entity.. (c) Effective date The amendments made by this section shall apply to buildings placed in service after December 31, 2026.