For Immediate Release:
Thursday, December 8, 2005 

WASHINGTON, D.C - U.S. Representative Dan Boren voted today to extend the Indian Land Tax Credit through 2006.  Crucial to Oklahoma business growth, the tax credit was included in a larger tax relief package which also benefits teachers, college students and independent oil producers. 

“Extending this important tax credit has been the centerpiece of my agenda since taking office,” Boren said – citing a campaign promise he made to voters last year.  “The Indian Lands tax credit was slated to sunset this year, but by extending it we’ve given Eastern Oklahoma a crucial edge in attracting businesses to our state,” Boren said.

“It is vital to be able to retain and recruit small and large employers,” Boren said.  “The Indian Lands Tax Credit is one of our most effective tools for growing businesses that create jobs.”  

The tax credit allows businesses locating or expanding to former Indian lands to qualify for an accelerated depreciation schedule, allowing them to recover their costs more quickly than in other parts of the country.  It also provides an additional credit for businesses located on Indian lands that employ Native Americans.

The credit was originally aimed at spurring economic development in states and communities with large Native American populations.  “With two-thirds of our state qualifying for the credit, and the highest concentration of Native Americans in the country, Oklahoma stands to benefit tremendously,” Boren said.

Boren, along with Rep. John Sullivan (R-Tulsa), introduced H.R. 597 in February to make the Indian Land Tax Credit permanent.  Although extending the credit was a major victory, Boren says he will continue fighting to make it permanent.   

The Indian Lands Tax Credit passed as part of the Tax Relief Extension Reconciliation Act – a tax relief package which also included incentives for families to save for retirement.  Also included in the bill, the “Savers Credit” was extended to help lower income taxpayers claim a nonrefundable credit for certain retirement savings contributions, including contributions to a 401(k), annuity or IRA.   

Other provisions extended through 2006:

• Suspension of the 100 percent income limit for marginal well production;
• Up to $4,000 in deductions for higher education expenses;
• Up to $250 in deductions for teachers’ out-of-pocket classroom expenses.

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