The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued two final tax regulations aimed at supporting Tribal businesses and families, as announced during a meeting of the Treasury Tribal Advisory Committee (TTAC).
The first regulation implements the Tribal General Welfare Exclusion Act of 2014. This rule allows Tribes to provide assistance to their members and families that is not subject to federal income tax. The regulation acknowledges the authority of Tribes to determine community needs and offers administrative flexibility in how assistance programs are structured.
“This rule demonstrates President Trump’s pro-growth agenda in action. Tribal Leaders know best the economic needs of their communities,” said Treasury Secretary Scott Bessent. “The rules provide clear guidelines and reduce the cost of compliance to the benefit of individuals and federal tax administration. Deregulation is a win-win for all.”
A second regulation addresses business entities wholly owned by Indian Tribal governments. It clarifies that these entities, when chartered under Tribal law, share the same tax-exempt status as their parent government and are not subject to federal income tax.
“Treasury took an important step today toward achieving common sense tax administration. The prior uncertainty created a significant barrier to economic development and impaired the ability to generate revenues for the programs and services Tribes provide to their citizens,” said U.S. Treasurer, Brandon Beach. “Tribes can now focus on growth rather than guessing the cost of financing.”
W. Ron Allen, TTAC Chair and CEO of the Jamestown S’Klallam Tribe, noted, “Tribes had sought guidance on general welfare for a decade and asked to confirm the tax status of Tribal businesses for 30 years. The first Trump Administration took action by standing up the TTAC, leading to substantial Tribal consultation. And the second Trump Administration has gotten this across the finish line, supporting our effort to grow our economies and strengthen our communities on our own terms, without federal paternalism.”
According to Treasury officials, these regulations were developed following consultations with TTAC members and other Tribal leaders.
More information about these regulations is available through related fact sheets provided by Treasury.
