Economic Development in Indian Reservations Hearing Before the Committee On in

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Economic Development in Indian Reservations Hearing Before the Committee On in
United States Congress Senate Committee On Indi
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Zone-styled policies have unfolded in a much difference way in Indian Country. Few, if any tribes, have designated a zone as such, opting instead to offer incentives and develop facilities capable of supporting new private investment. Tribes were not included in the 1993 Empowerment Zone and Enterprise Communities Act as com- munities eligible for formal designation or for Federal support under Health and Human Services Title XX funding.
Instead, the Act established a separate provision that of
...fered a series of tax incen- tives any tribe could use to stimulate reservation-based investment. There is a need to rethink both this program and the challenge of economic development in Indian Country in light of what we have learned from the local and state experience with zones. They have found, for example, that tax incentives tend to make a substantial difference in business location decision only at the margin. When all other location factors that influence a company's choice are more or less equal, a tax abatement can encourage them to select a zone-based site over another.

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