Indian Employment Tax Credit

An Eligible Employee:

  1. Is an enrolled member of an Indian tribe or the spouse of a member of an Indian tribe;
  2. Performs substantially all of his or her services for the employer within an Indian reservation, and
  3. 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.