Inhofe, Rounds, Blunt, Lummis Introduce Indian Lands Accelerated Depreciation Bill

Press Release

U.S. Sens. Jim Inhofe (R-Okla.), Mike Rounds (R-S.D.), Roy Blunt (R-Mo.) and Cynthia Lummis (R-Wyo.) this week introduced a bill to make permanent the accelerated depreciation of business property on Indian reservations, which would allow for continued job growth and investment in the state of Oklahoma.

"For years we've used the Indian Lands Accelerated Depreciation legislation to empower further investment in Oklahoma, but the tax credit has been sporadic and requires repeated extensions," Inhofe said. "Making this tax provision permanent would allow for much quicker depreciation of capital assets used on tribal lands, thereby creating significant savings for businesses to invest and grow the local economy."

"The tax credit created by Indian Lands Accelerated Depreciation legislation continues to spur meaningful business investment in South Dakota," Rounds said. "Our bill will make this tax credit permanent and give entrepreneurs the certainty they need to continue expanding their operations in South Dakota. This will create job growth and increase economic opportunities across our state."

The Indian Lands Accelerated Depreciation bill would permanently extend Section 168(j), which allows for accelerated depreciation of investments made on Indian lands. Full bill text can be found here.

Background:

This tax credit has proven successful. From 2012 to 2017, Oklahoma saw poverty rates decrease in counties qualifying for Section 168(j) while poverty rates increased in non-qualifying areas.
First established in 1994, Section 168(j) has consistently been included in tax extenders legislation since it first expired in 2003. Most recently, a one-year extension was enacted through the end of 2021.
34 states contain federally recognized tribal lands that would qualify for Section 168(j)

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