Tax Incentives

Under Federal Law the Internal Revenue Code (I.R.C.) allows employers to take a significant credit against their federal taxes for employees working within an Indian Reservation.

Employers may take 20% employment tax credit on the $20,000 of qualified wages and health insurance costs paid to a tribal member or to their spouse, living on or near a reservation and earning less than $30,000 per year. The credit is available for qualified wages and health care costs paid after January 1, 1994 through the year 2003 (25.U.S.C.45A). This law has been extended to the year 2012.

Accelerated property depreciation is another I.R.C., which allows property to be depreciated at a faster rate than ordinarily allowed, offering significant tax savings.

For example, non-residential property can be depreciated over 22 normally depreciated over 20 years can depreciated in only 9 years, etc.(26 U.S.C. 168 (j)).Certain infrastructure” property located outside the reservation can also qualify for accelerated depreciation Due to our eligibility and participation in the U.S.D.A. Empowerment Zone/Enterprise Program, the Arapaho Nation is now designated a Champion community, for other tax incentives and preferences in certain Federal Granting Agencies.