On June 11, 2025, Senators Catherine Cortez Masto (D‑NV) and Lisa Murkowski (R‑AK) introduced the Tribal Tax and Investment Reform Act of 2025 (S. 2022). The bill, co-sponsored and supported by tribal leaders, aims to align IRS rules so that tribal governments have equal access to tax tools traditionally available to states and municipalities.
Key Provisions Include:
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Parity on Tax-Exempt Bonds – Removes the “essential government function” test and allows tribes to access a share of national bond volume cap ($400M/year).
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$175 Million New Markets Tax Credit – Creates a dedicated annual NMTC program to attract investment in tribal communities.
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Strong Low-Income Housing Tax Credit Access – Expands LIHTC eligibility by recognizing Indian areas as difficult development zones.
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Equitable Treatment of Tribal Benefit Programs – Ensures pension, employee benefits, and IHS loan repayments receive fair tax treatment.
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Child Adoption Credit Parity – Allows tribes to define special-needs status for adoption tax credits.
Voices from Indian Country:
“The bill reflects decades of Tribal efforts to secure tax parity…necessary and overdue,” said NAFOA President Rodney Butler
“Empowering tribal governments to issue bonds and use housing tax credits opens the door for more infrastructure and job growth,” said Senator Murkowski
Broader Impact:
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Tribes gain tools to finance community facilities, housing, health centers, and infrastructure
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Attracts private capital, fosters entrepreneurship, and creates sustainable jobs
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Advances tribal sovereignty by enabling self-directed economic development
Where It Stands:
The bill has been referred to the Senate Finance Committee, and advocates like NAFOA are monitoring its progress—urging swift passage to empower tribal communities.
LEARN MORE: Congress.gov
