Support for Enactment of Promise Zone Tax Credits

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 The National Congress of American Indians
Resolution #ANC-14-035

TITLE: Support for Enactment of Promise Zone Tax Credits

WHEREAS, we, the members of the National Congress of American Indians of the United States, invoking the divine blessing of the Creator upon our efforts and purposes, in order to preserve for ourselves and our descendants the inherent sovereign rights of our Indian nations, rights secured under Indian treaties and agreements with the United States, and all other rights and benefits to which we are entitled under the laws and Constitution of the United States, to enlighten the public toward a better understanding of the Indian people, to preserve Indian cultural values, and otherwise promote the health, safety and welfare of the Indian people, do hereby establish and submit the following resolution; and

WHEREAS, the National Congress of American Indians (NCAI) was established in 1944 and is the oldest and largest national organization of American Indian and Alaska Native tribal governments; and

WHEREAS, President Obama announced the first Promise Zone designees on January 9, 2014, naming the Choctaw Nation of Oklahoma as the first tribal Promise Zone; and

WHEREAS, the Obama administration will designate 15 additional Promise Zones, with additional Promise Zone designations for tribal nations; and

WHEREAS, each Promise Zone designation lasts 10 years; and

WHEREAS, President Obama first proposed Promise Zone tax incentives in the administration’s Fiscal Year 2014 and then again in the Fiscal Year 2015 budget; and
WHEREAS, the first proposed incentive would provide employee credits to businesses in each Promise Zone that employ zone residents. The employment credit would apply to the first $15,000 of qualifying zone employee wages. The credit would be 20 percent for zone residents who are employed within the zone and 10 percent for zone residents employed outside the zone; and

WHEREAS, the second proposed incentive would provide additional first-year depreciation of 100 percent of the adjusted basis of the property for qualified property. Qualified property for this purpose includes tangible property with a recovery period of 20 years or less, water utility property, certain computer software, and qualified leasehold improvement property. Qualified property must be new property. The taxpayer must purchase (or begin manufacture or construction of) the property after the date of the zone designation and before the designation ends; and

WHEREAS, data from these tax incentives will be collected by the Secretary of the Treasury and the Secretary of Commerce to measure the Promise Zone’s impact on job creation and economic development in Indian Country.

NOW THEREFORE BE IT RESOLVED, NCAI supports and calls upon Congress to pass the proposed Promise Zone tax incentives to ensure access for tribal communities and to support job creation and economic development in Indian Country; and

BE IT FURTHER RESOLVED, that NCAI hereby calls upon the Congress of the United States to enact legislation to place these tax incentives in the United States Tax Code; and

BE IT FINALLY RESOLVED, that this resolution shall be the policy of NCAI until it is withdrawn or modified by subsequent resolution.

 

CERTIFICATION

The foregoing resolution was adopted by the General Assembly at the 2014 Mid-Year Session of the National Congress of American Indians, held at the Dena'ina Civic & Convention Center, June 8-11, 2014 in Anchorage, Alaska, with a quorum present.