Tax breaks on tribal land

[Joshua Tucker]

What specific tax benefits can high net worth individuals receive from building real estate on tribal land?

[Dominic Mazzarella]

Quote from @Joshua Tucker:

What specific tax benefits can high net worth individuals receive from building real estate on tribal land?

The specifics usually depend on agreements with the tribal government. For instance, many tribal lands are exempt from state and local property taxes, which can obviously lead to significant savings. In some cases, federal tax credits like those for low-income housing or economic development might also apply if the project aligns with certain goals.

Instead of buying the land outright, developers often lease it from the tribe, which can reduce upfront costs and sometimes come with favorable lease terms. Tribes might even provide additional incentives, like grants or infrastructure funding, to encourage investment. On top of that, hiring tribal members for construction or operations could qualify for employment-related tax credits.