Indian Tribal Government Charitable Deduction

§ 7871. Indian tribal governments treated as States for certain purposes(a) General ruleAn Indian tribal government shall be treated as a State—(1) for purposes of determining whether and in what amount any contribution or transfer to or for the use of such government (or a political subdivision thereof) is deductible under—(A) section 170 (relating to income tax deduction for charitable, etc., contributions and gifts), (B) sections 2055 and 2106(a)(2) (relating to estate tax deduction for transfers of public, charitable, and religious uses), or (C) section 2522 (relating to gift tax deduction for charitable and similar gifts); (2) subject to subsection (b), for purposes of any exemption from, credit or refund of, or payment with respect to, an excise tax imposed by—(A) chapter 31 (relating to tax on special fuels), (B) chapter 32 (relating to manufacturers excise taxes), (C) subchapter B of chapter 33 (relating to communications excise tax), or (D) subchapter D of chapter 36 (relating to tax on use of certain highway vehicles); (3) for purposes of section 164 (relating to deduction for taxes); (4) subject to subsection (c), for purposes of section 103 (relating to State and local bonds); (5) for purposes of section 511(a)(2)(B) (relating to the taxation of colleges and universities which are agencies or instrumentalities of governments or their political subdivisions); (6) for purposes of—(A) section 105(e) (relating to accident and health plans), (B) section 403(b)(1)(A)(ii) (relating to the taxation of contributions of certain employers for employee annuities), and (C) section 454(b)(2) (relating to discount obligations); and (7) for purposes of—(A) chapter 41 (relating to tax on excess expenditures to influence legislation), and (B) subchapter A of chapter 42 (relating to private foundations). (b) Additional requirements for excise tax exemptionsParagraph (2) of subsection (a) shall apply with respect to any transaction only if, in addition to any other requirement of this title applicable to similar transactions involving a State or political subdivision thereof, the transaction involves the exercise of an essential governmental function of the Indian tribal government. (c) Additional requirements for tax-exempt bonds(1) In generalSubsection (a) of section 103 shall apply to any obligation (not described in paragraph (2)) issued by an Indian tribal government (or subdivision thereof) only if such obligation is part of an issue substantially all of the proceeds of which are to be used in the exercise of any essential governmental function. (2) No exemption for private activity bondsExcept as provided in paragraph (3), subsection (a) of section 103 shall not apply to any private activity bond (as defined in section 141(a)) issued by an Indian tribal government (or subdivision thereof).