Indian Employment Tax Credit
An Eligible Employee:
- Is an enrolled member of an Indian tribe or the spouse of a member of an Indian tribe;
- Performs substantially all of his or her services for the employer within an Indian reservation, and
- Has his or her main home on or near that reservation while performing those services
Employees who earn more than $30,000 are not eligible for this tax credit.
The Indian Employment Credit (IEC) has a maximum of $4,000 per eligible employee.
The credit is 20% of the excess of the current qualified wages and qualified employee health insurance costs (not to exceed $20,000) over the sum of the corresponding amounts that were paid or incurred during the calendar year of 1993.