Daines Introduces Bipartisan Legislation to Encourage Investment in Indian Coal

Press Release

Representative Steve Daines has introduced legislation to make permanent the Indian Coal Production Tax Credit (ICPTC) -- a crucial tax incentive that levels the playing field for future development of the vast Tribal coal resources, helps create much-needed jobs and protects the economic viability of existing projects.

Democrat Representative Ann Kirkpatrick (AZ-01) joined Daines in introducing the bipartisan legislation, H.R. 4785. Full text of the bill is available here.

The ICPTC was first offered in the Energy Tax Incentives Act of 2005 and, before its expiration at the end of last year (along with dozens of other tax policies), served as a counter-balance to the additional costs and time required to develop Tribal coal deposits, which are subject to more regulatory requirements than comparable development on private, state or federal lands.

"Leveling the playing field and incentivizing investment in Indian energy has already created jobs and increased the self-sufficiency of coal-producing Tribes in Montana, but only a permanent extension will provide the kind of certainty that is needed for large energy development projects and to ensure strong economic benefits for future generations of Montana's Tribes," Daines said.

Daines' ICPTC legislation has received strong support from Tribal leadership.

"The Indian Coal Production Tax Credit is an essential tool that allows our coal resources to compete on a level playing field and maintains the economic viability of our existing coal mining operations at the Absaloka Mine," stated Crow Tribal Chairman Darrin Old Coyote. "All efforts to assist the Crow Nation utilize our large coal resources to create good-paying jobs and financial support for the Crow people are needed at this time. We sincerely appreciate Representative Daines' work to obtain a permanent extension of this tax credit."

"Indian coal" is coal produced from reserves owned by an Indian Tribe or held in trust by the United States for the benefit of an Indian tribe. Its production has already generated more than 125 jobs for Tribal members in Montana.

Source