118 T.C. No. 37
UNITED STATES TAX COURT
WARBELOW’S AIR VENTURES, INC., Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 10351-00. Filed June 27, 2002.
P leased land from the State of Alaska to operate
an airport. The leased land is surrounded by lands
owned by a Native corporation and a federally
recognized Native entity. P claimed the Indian
employment credit (IEC) on its corporate tax return
with respect to wages paid to employees who perform
substantially all of their services for P at the
airport. R disallowed the IEC.
Held: The term “within an Indian reservation” in
I.R.C. sec. 45A(c)(1)(B) means located “on” an Indian
reservation.
Held, further, P does not qualify for the IEC
because the airport is not located “within an Indian
reservation” within the meaning of I.R.C. sec. 45A.
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