Daines, Tester Introduce Bill to Make Indian Coal Production Tax Credit Permanent

U.S. SENATE —Montana’s U.S. Senators Steve Daines and Jon Tester today introduced legislation to permanently extend the Indian Coal Production Tax Credit (ICPTC). 

The ICPTC provides a crucial tax incentive to level the playing field for future development of tribal coal resources that are currently subject to more regulatory requirements than comparable development on private, state or federal lands. ICPTC credit protects the economic viability of existing tribal coal mining projects, which support much-needed tribal jobs and provide a major source of non-federal revenue for coal-producing tribes. 

“The Crow Tribe in Montana has the potential to develop 10 billion tons of coal on their reservation,” Daines stated. “Indian Coal production creates good-paying jobs in Indian Country, generates significant non-federal tax revenue to support essential services, and enables tribal self-determination.”

“The Indian Coal Production Tax Credit helps create good jobs and increases self-determination in Indian Country,” Tester said.  “Incentivizing more responsible natural resource development on tribal lands will create high-paying jobs, strengthen tribal sovereignty and help produce more revenue for local schools, law enforcement, and infrastructure.” 

Daines’ and Tester’s legislation has received strong support from tribal leadership.

Crow Tribal Chairman Alvin Not Afraid, Jr.:  “We are very grateful to Senator Daines and Senator Tester for sponsoring legislation to permanently reauthorize the Indian Coal Production Tax Credit.   The credit helps level the playing field for Indian coal, and a permanent extension will allow our industry partners to make the large investments necessary for further development of our extensive Crow coal resources.  We look forward to the Congress’ favorable consideration of this much-needed relief.” 

The Senate legislation introduced today is also co-sponsored by U.S. Senators John Barrasso (R-WY) and Heidi Heitkamp (D-ND). 

The ICPTC was first offered in the Energy Policy Act of 2005 and was recently granted a two-year extension, which expired at the end of last year. The tax credit was designed to incentivize investment on Indian lands and the hiring of Indian people.

Last Congress, Daines and Tester both supported legislation to make the Indian Coal Production Tax Credit permanent. 

The full text of the Senators’ bill is available here.