Dear Chief Malerba,
On behalf of the United South and Eastern Tribes Sovereignty Protection Fund (USET SPF), we submit these comments to Treasury in response to the Tribal consultations held on June 21, and 22, 2023 on the tax status of Tribally chartered corporations (TCCs). For well over two decades, Treasury and the Internal Revenue Service (IRS) have stated their intent to issue formal guidance on the tax status of TCCs but have not done so. USET SPF commends Treasury for finally seeking comments and launching this effort to clarify the tax status of TCCs as this issue has long stifled the economic progress of our Tribal Nations and our further pursuits and priorities of Nation rebuilding. This has also recently become a central issue in the consultations and discussions surrounding elective/direct payment of certain applicable tax credits authorized by the Inflation Reduction Act. As discussed in detail throughout our comments, USET SPF urges Treasury to issue guidance affirming that TCCs (whether wholly, jointly or majority owned) share the same tax status as the Tribal government, and therefore, are not subject to federal tax on earned income regardless of the location where that income is earned.
TCCs have been established by our Tribal Nations to advance our economic priorities in pursuit of Nation rebuilding. They are essential components in our effort to rebuild our Tribal economies, create jobs for our citizens, and improve the public well-being and economic self-sufficiency of our citizens and communities. TCC operations can have a multiplier effect on dollars within our communities and increase generational wealth, which has long been problematic for our Tribal Nations and citizens. We appreciate the opportunity to comment on this important topic and we thank Treasury for its essential work. The proposed guidance rule should clear up a source of much confusion and distress in Indian country and substantially improve the functioning, integration, and benefits of TCCs. We urge Treasury to incorporate additional Tribal consultation feedback as it develops the proposed guidance.
For more information, please contact Liz Malerba, USET SPF Director of Policy and Legislative Affairs, at email@example.com.