New Designations Could Spur Innovation in Indian Country

As many states are nearing the economic definition of full employment, many tribal communities still struggle with job creation and business development. However, the recent announcement of a few new federal programs could provide tribal officials with key growth tools to build entrepreneurship and employment on reservations.

With the passage of the Tax Cuts and Jobs Act of 2017, Congress created “Opportunity Zones.” Opportunity Zones are special districts nominated by state governors that provide tax incentives for business development. Governors in Nebraska, Wisconsin, Montana, Arizona, and Washington have already jumped at the chance to provide tax relief on tribal lands through the program. The Montana governor’s office noted that the tax incentives can be used for “downtown revitalization, workforce development, affordable housing, infrastructure, and business startup and expansion.”

But tax incentives alone are not enough to bring more business to reservations, tribal citizens also need the entrepreneurial skills to operate these companies. One month ago the White House established the Office of American Innovation (OAI).

Job creation is a chief goal of OAI. Some believe that this new White House team is the perfect place to implement an incubator program to help entrepreneurial Natives start new businesses and foster the skills needed to make them a success.

NAFSA previously expressed support for the Jobs for Tribes Act, a Senate bill that combined a number of tribal economic development proposals, including the Native American Business Incubators Act. An important component of NAFSA’s mission is to “provide better economic opportunity in Indian Country for the benefit of tribal communities.” Programs like Opportunity Zones and business incubators are a step in the right direction toward positive job growth and business outcomes in Indian Country.