Last week, U.S. Senators Catherine Cortez Masto (D-NV) and Lisa Murkowski (R-AK) introduced bipartisan legislation featuring several long-overdue reforms that would provide Tribal Nations, Alaska Native Corporations (ANCs), and other Native entities with access to previously unavailable sources of tax-free funding. Titled the “Tribal Tax and Investment Reform Act of 2025” (S. 2022), the bill includes provisions to (1) create an annual $175 million New Markets Tax Credit (NMTC) allocation for low-income tribal communities and for projects that serve or employ tribal citizens, and (2) revamp the Low-Income Housing Tax Credit (LIHTC) program to expand access for Tribal Nations by including an “Indian area” in the program’s definition of “difficult development areas” for determining eligibility.
“For decades, Indian Country has been pushing for these changes to the U.S. tax code, which will galvanize the efforts of tribal governments, ANCs, Native CDFIs, and other Native entities to grow the economies of Native communities the ways they see fit,” said Pete Upton, CEO of the Native CDFI Network (NCN). “Expanding the NMTC program in particular has long been a top policy priority of NCN and Native CDFIs, and we look forward to working with Congress to refine the bill’s language to ensure that Native Community Development Entities get their fair share of the NMTC allocation for Indian Country.”
“It is promising to see the support for these important issues that all have the potential to strengthen tribal communities. In particular, the $175 million NMTC set-aside for projects in tribal communities will be such a powerful tool to ensure capital can better match the immense unmet needs on reservations,” said Joel Smith, President of Community Development with Native American Bank. “We need to marshal support from across Indian County to ensure these priorities make it in to law.
The U.S. House of Representatives is expected to introduce companion legislation to S. 2022 soon. NCN plans to work closely with its Indian Country partners over the coming weeks to secure additional Senate and House co-sponsors and ensure the legislation’s timely package. This effort will include the opportunity for Native CDFIs and partners to sign a joint letter to Congress supporting the legislation next week.
To read the official summary of the legislation, please click here.
To read Senator Cortez Masto’s press release about the legislation, click here.