Inherent sovereignty as tribal governments enhanced and empowered by the legal status conferred upon the American Indian tribes by treaties, treaty substitutes, by both the Executive branch and the Legislative branch, is recognized by the U.S. legal system which provides the backdrop for these unique, innovative opportunities for private sector businesses and investors who wish to create a private sector on Indian trust lands under the jurisdiction of federally recognized tribal governments. Very briefly, some of the investment incentives that can be provided by tribal governments through their legal infrastructure are as follows (these are not all inclusive):

• No tribal corporate income tax.
• No inventory tax on goods held for resale or otherwise in stock.
• Sales tax exemption for machinery and equipment used directly in the manufacturing process, including replacement parts.
• The assessment ratio of the tribal possessory interest tax is normally $1.00 per acre, plus a surcharge tax equal to 1% of the market value of the valuable improvements within a possessory interest. A possessory interest is basically a leasehold interest.
• Property which is held in trust by the United States for the benefit of an Indian tribe and/or individual is generally exempt from any state ad valorem taxes on land and buildings as a matter of federal law.
• Both the Bureau of Indian Affairs and the Oklahoma Department of Transportation have industrial access road programs.
• Tribes, legally, can be grantees for general purpose foreign trade zones (FTZ), if needed. General purpose FTZ's are located at Will Rogers World Airport, Port of Catoosa in Tulsa and Muskogee.
• Union activity can be avoided by business and industry on Indian trust lands, if needed.
• Tribes can develop their own EPA laws in conformance with federal EPA requirements and issue the required EPA licenses and permits.
• Tribes can structure product liability laws to cap product liability for manufacturing concerns that need this type of protection.
• Tribes can self-insure, thereby providing an opportunity for business and industry to save money by precluding participation in state unemployment insurace and worker's compensation programs.
• Tribes have training programs funded by both the BIA and JTPA. They work closely with the State's Vo-Tech system as required by the prospect's training needs.

Obviously, the particular advantages of locating a business within tribal jurisdiction will depend upon the type of business, actual structuring of the business entity or entities themselves, and careful structuring of the business relationships which such entities have with other businesses.

Based upon historical government-to-government relationship with Indian tribes, the U.S. Congress legislated preferential procurement laws to assist tribes and their members wishing to enter into private sector markets.

Indian tribes, with the passage of The Business Opportunity Development Act of 1988, P.L. 100-656(H.R. 1807), can now participate in the SBA 8(A) program with more flexibility. This opens up new avenues of business opportunities for tribes to joint-venture with private sector corporations to access Department of Defense contracts as well as other federal agencies. This SBA 8(A) program concept, combined with P.L. 100-442, Department of Defense 5% purchasing goal established for American Indians, opens the door to approximately $380 billion Department of Defense purchasing market heretofore unavailable.
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From: Tax and Financing Incentives-A Tribal Perspective (1993)
Robert D. Anderson represents the Tribal Government Assistance Program within The Oklahoma Department of Commerce.
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If you are interested in pursuing a tribal structure, AM-SEC-COM, Inc. can provide consulting services to your company. AM-SEC-COM provides business development services which can facilitate negotiating a joint venture project through a tribal industrial development agency.