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FAQs for Indian Tribal Governments regarding the Indian Employment Credit

These frequently asked questions and answers are provided for general information only and should not be cited as any type of legal authority. They are designed to provide the user with information required to respond to general inquiries. Due to the uniqueness and complexities of Indian law and Federal tax law, it is imperative to ensure a full understanding of the specific question presented, and to perform the requisite research to ensure a correct response is provided.



  1. What is the intent of the Indian Employment Credit (Section 45A)?
  2. Who can claim the credit?
  3. Does the business have to be in an empowerment zone or enterprise community to qualify for the credit?
  4. Who is a "qualified employee"?
  5. Who is considered to be a "nonqualified employee"?
  6. What are "qualified wages"?
  7. Is there a limit on the amount of wages that can be used to compute the credit?
  8. How do you determine the amount of the credit?
  9. What effect does the credit have on the salary and wage deduction?
  10. What effect does a qualified employee's termination have on the Indian Employment Credit?
  11. What form is used to claim the credit?
  12. What effect does the Work Opportunity Credit have on the Indian Employment Credit?


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1-877-829-5500.

For questions on any tribal tax matter, please e-mail us.  Be sure to include your name, your phone number and your email address so that we can respond to your question.
Page Last Reviewed or Updated: 25-Feb-2014