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Sec. 139E. Indian General Welfare Benefits

I.R.C. § 139E(a) In General
Gross income does not include the value of any Indian general welfare benefit.
I.R.C. § 139E(b) Indian General Welfare Benefit
For purposes of this section, the term “Indian general welfare benefit” includes any payment made or services provided to or on behalf of a member of an Indian tribe (or any spouse or dependent of such a member) pursuant to an Indian tribal government program, but only if—
I.R.C. § 139E(b)(1)
the program is administered under specified guidelines and does not discriminate in favor of members of the governing body of the tribe, and
I.R.C. § 139E(b)(2)
the benefits provided under such program—
I.R.C. § 139E(b)(2)(A)
are available to any tribal member who meets such guidelines,
I.R.C. § 139E(b)(2)(B)
are for the promotion of general welfare,
I.R.C. § 139E(b)(2)(C)
are not lavish or extravagant, and
I.R.C. § 139E(b)(2)(D)
are not compensation for services.
I.R.C. § 139E(c) Definitions And Special Rules
For purposes of this section—
I.R.C. § 139E(c)(1) Indian Tribal Government
For purposes of this section, the term “Indian tribal government” includes any agencies or instrumentalities of an Indian tribal government and any Alaska Native regional or village corporation, as defined in, or established pursuant to, the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.).
I.R.C. § 139E(c)(2) Dependent
The term “dependent” has the meaning given such term by section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B).
I.R.C. § 139E(c)(3) Lavish Or Extravagant
The Secretary shall, in consultation with the Tribal Advisory Committee (as established under section 3(a) of the Tribal General Welfare Exclusion Act of 2014), establish guidelines for what constitutes lavish or extravagant benefits with respect to Indian tribal government programs.
I.R.C. § 139E(c)(4) Establishment Of Tribal Government Program
A program shall not fail to be treated as an Indian tribal government program solely by reason of the program being established by tribal custom or government practice.
I.R.C. § 139E(c)(5) Ceremonial Activities
Any items of cultural significance, reimbursement of costs, or cash honorarium for participation in cultural or ceremonial activities for the transmission of tribal culture shall not be treated as compensation for services.
(Added by Pub. L. 113-168, Sec. 2(a), Sept. 26, 2014; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(42)-(43), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018-- Subsec. (c)(1). Pub. L. 115-141, Div. U, Sec. 401(a)(42), amended par. (1) by substituting “(43 U.S.C. 1601 et seq.)” for “(43 U.S.C. 1601, et seq.)”.
Subsec. (c)(3). Pub. L. 115-141, Div. U, Sec. 401(a)(43), amended par. (3) by substituting “2014” for “2013”.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(42)-(43), effective March 23, 2018.
EFFECTIVE DATE
(1) IN GENERAL.—The amendments made by this section shall apply to taxable years for which the period of limitation on refund or credit under section 6511 of the Internal Revenue Code of 1986 has not expired.
(2) ONE-YEAR WAIVER OF STATUTE OF LIMITATIONS.—If the period of limitation on a credit or refund resulting from the amendments made by subsection (a) expires before the end of the 1-year period beginning on the date of the enactment of this Act, refund or credit of such overpayment (to the extent attributable to such amendments) may, nevertheless, be made or allowed if claim therefor is filed before the close of such 1-year period.