May 17, 2011
WASHINGTON, D.C. – U.S. Sen. Jim Inhofe (R-Okla.) today reintroduced legislation that would make permanent the current tax provision that allows capital assets on Indian lands to be depreciated on an accelerated schedule. S. 1008 provides a stable incentive for businesses to invest in operations on Indian reservations and lands across the country. In the past, this temporary measure has been approved by Congress on a yearly basis. However, this legislation will make this measure permanent, allowing much-needed stability to businesses located on Indian lands.
“This legislation is imperative to creating economic growth for Oklahoma and the nation,” said Inhofe. “To renew this measure each year is simply not enough. We must provide stability to businesses, especially during times of economic hardship. This legislation is critical to the wellbeing of Oklahoma, as it not only continues our long standing relationship with Indian tribes but also provides an incentive to create employment opportunities in the state. Businesses that purchase capital equipment and use it on Indian lands will be able to depreciate it, on average, more than 40 percent faster than otherwise allowed. If we want to provide more stability in the marketplace, we must make sure this provision becomes permanent.”
In a letter to Inhofe, Valerie Devol, an attorney specializing in Indian tax law with McCormick and Bryan in Edmond, wrote, “Internal Revenue Code Section 168(j) Accelerated Depreciation on Indian Lands is one of the selling points we use in addition to other tax credits and benefits offered by the State of Oklahoma to encourage businesses to partner with our Tribal clients. These credits are critical in attracting businesses to the most rural and impoverished areas of the state. When combined with the Indian employment credit, accelerated depreciation on Indian Lands encourages business in Tribal communities and encourages the hiring of Native Americans.”