Jan 5 | By: Jared King

WASHINGTON–The 112th Congress ended the year this week by passing a fiscal cliff deal via the American Taxpayer Relief Act that included provisions designed to promote economic development in Indian Country.

The Act delays the automatic cuts outlined under the Deficit Reduction Act until March 27, 2013. Additionally, the Act continues funding all federal government programs under a continuing resolution for fiscal year 2013 until March 27, 2013.

The Act extends through December 31, 2013 several tax provisions important to Indian Country. These include the Indian Employment Tax Credit, the Accelerated Depreciation for businesses on an Indian Reservation provision, and a production credit for coal facilities in use prior to 2009. Additionally, empowerment zone tax provisions and new market tax credits are extended.

The tax rate hike for the wealthiest Americans will affect those individuals earning incomes above $400,000 ($450,000 for couples).

Additionally, payroll taxes are set to increase since the bill failed to extend the cuts put in place in 2010. Payroll taxes will rise from 4.2 percent to 6.2 percent.

However, the agreement successfully extends food stamp program benefits and creates a permanent fix to the alternative minimum tax provisions.