President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creat Act of 2010, known as the "Middle Class Tax Cut Bill," an Act that extends all of the 2001 and 2003 Bush tax cuts. The Act did not extend two programs potentially important to Tribes: (1) the Build America Bonds program, which expires on December 31, 2010, (2) nor any extension of any of the other expiring provision related to municipal finace enacted inthe 2009 America Recovery and Reinvestment Act, which includes section 7871 exemption for "essential governmental functions." The Stimulus Act provision IRC § 7871(f), which previously expanded the definition of essential government functions allowed for broader use of tax exempt bonds issued by Indian tribal governments, known as “tribal economic development bonds.” The expiration of the ARRA provisions thereby severely limits an essential economic development tool in Indian County.
The Department of Treasury extended the deadline initially set for December 31, 2010, to June 30, 2011 for any tribe that received an inital allocation. Very few tribes took advantage of this program. Any tribe wanting the extension must request it in writing by March 31, 2011. All other provisions expire today.
