No Income Tax

·         No Federal Income Tax – On or Off Reservation. Like any government-owned entity, tribes and tribal owned enterprises are exempt from federal income taxes. If a business entity is formed between a tribe and a non-tribal company, the portion which is owned by the tribe (or the tribal corporation) is exempt from federal income taxes. This is true regardless of whether the business is located on or off the reservation.

·         No State Income Tax – On the Reservation. If a corporation is owned by the tribe or the local tribal government (WLC) and is operating on the reservation it does not pay any state income taxes.

·         No State Income Tax – On the Reservation. If a corporation is owned by the tribe or the local tribal government (WLC) and is operating on the reservation it does not pay any state income taxes.

·         Low Tax Structure for Corporate Partners - To maintain a self-sustaining tribal economy while fostering business growth, the Wakpamni Lake Community (WLC) applies a low tax rate for corporate partners who register their businesses with WLC/WEDG. This ensures that businesses benefit from significant tax savings while contributing to the development of local infrastructure and economic programs.

No Sales Taxes 

·         No state sales tax. Many tribes do not have their own sales taxes. In addition, most states have exemptions from state sales taxes for sales to government entities. In South Dakota sales to tribal entities that are delivered to our reservation do not pay sales tax. 

Tax Credits

·         New Market Tax Credits. New Markets Tax Credits are available for investors that make capital investments on Indian reservations, providing tax credits of up to 39 percent of the entire amount of the investment. The tax credit is spread over seven years, 5 percent of the investment for the first three years, and 6 percent of the investment amount can be claimed the next four years.

·         Indian wages and insurance tax credits. Employers can receive a tax credit of up to 20 percent of wages and health insurance for qualified employees living on Indian reservations.

·         Equipment and buildings accelerated depreciation. Businesses can claim depreciation at twice the normal rate for locating equipment and buildings on tribal land.

 Subsidized Federal Financing

·         Tax exempt bonds. There are annual IRS allocations available for tribes to issue governmental bonds which are tax exempt for investors, Tribal Economic Development/TED Bonds. Bond proceeds that are used for projects must be located on tribal lands, provide essential governmental functions, and not involve gaming, but otherwise the bonds are quite flexible.

·         USDA Business & Industry Loan Guarantee -- Rural Businesses. The USDA provides loan guarantees ranging from 60-80 percent of a privately financed loan. The business must be located in a rural area (less than 50,000 inhabitants), for which most Indian reservations qualify. The loan guarantee can be used for: business conversion, land, rights-of-way, buildings, equipment, inventory, and debt refinancing and business acquisitions when it saves or creates jobs.

·         BIA Loan Guarantees -- Indian Reservation Projects. Tribes can obtain a loan guarantee from the Bureau of Indian Affairs for up to 90 percent of a private loan. The business must be located on or near an Indian reservation and must contribute to the economy of the reservation. The tribe must have at least 20 percent equity in the business. The loans may be used for a variety of purposes including operating capital, equipment purchases, business refinance, building construction, and lines of credit.

No Property Tax

·         Land at no cost. If WLC already owns and leases the land it may be available at low to know costs.

·         No state property tax. If the land is located on our reservation and is owned by the Wakpamni Lake Community (or by the Oglala Sioux Tribe and leased by WLC) and is in "trust" with the federal government, then the land is not subject to state property taxes.

·         No state property improvements tax. If the business operating on the trust lands makes improvements and is owned by WLC/WLCC, any improvements are also exempt from state taxation. 

No State Regulations

·         When located on our reservation (the Oglala Sioux Tribe reservation in South Dakota) on our tribal lands, federal laws and regulations apply but state laws and regulations do not. 

Flexible Building Codes 

·         Tribal businesses operating on tribal lands are generally exempt from local, county, and state zoning and land-use restrictions and state permitting requirements.

Marketing Advantages

·         Some businesses, such as food and medicines, can benefit from being marketed as Native American made or owned. 

Government Contracting Preferences

·         DOD Preferences – SBA 8(a). The Small Business Administration’s "8(a) program" authorizes preferences for minority-owned small businesses in bidding for federal contracts. However, if the company is owned by a tribal government, it receives additional benefits, such as not being subjected to the lower contract amount caps.

·         HUBZone Preferences – Indian Reservations. If a small business is located on Indian lands and 35 percent of its employees reside on the reservation, the company is eligible for HUBZone preferences in the awarding of federal contracts. Benefits include competitive and sole source contracting and a 10 percent price evaluation preference in full and open contract competitions.

·         BIA/IHS Preferences - Buy Indian Act. Because of the unique treaty responsibilities of the U.S. Bureau of Indian Affairs (BIA) and the Indian Health Services (IHS) have the authority to give preferences to Indian and tribally-owned companies in their procurement.