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Title 26 — Internal Revenue CodeRelease 119-73

§139D Indian health care benefits

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter B— - Computation of Taxable Income › Part PART III— - ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME › § 139D

Last updated Apr 6, 2026|Official source

Summary

Certain Indian health care benefits are not counted as taxable income. That includes four kinds: services paid or arranged by the Indian Health Service; medical care paid for or reimbursed by a tribe for a member (including the member’s spouse or dependent); insurance or health plans a tribe provides; and other tribal medical care that replaces or supplements federal services. If a benefit is already excluded or deductible under another tax rule, this rule does not apply to that amount. Key terms are defined elsewhere (see sec. 45A(c)(6); ISDEAA sec. 4(l); secs. 213, 105, 152).

Full Legal Text

Title 26, §139D

Internal Revenue Code — Source: USLM XML via OLRC

(a)Except as otherwise provided in this section, gross income does not include the value of any qualified Indian health care benefit.
(b)For purposes of this section, the term “qualified Indian health care benefit” means—
(1)any health service or benefit provided or purchased, directly or indirectly, by the Indian Health Service through a grant to or a contract or compact with an Indian tribe or tribal organization, or through a third-party program funded by the Indian Health Service,
(2)medical care provided or purchased by, or amounts to reimburse for such medical care provided by, an Indian tribe or tribal organization for, or to, a member of an Indian tribe, including a spouse or dependent of such a member,
(3)coverage under accident or health insurance (or an arrangement having the effect of accident or health insurance), or an accident or health plan, provided by an Indian tribe or tribal organization for medical care to a member of an Indian tribe, include a spouse or dependent of such a member, and
(4)any other medical care provided by an Indian tribe or tribal organization that supplements, replaces, or substitutes for a program or service relating to medical care provided by the Federal government to Indian tribes or members of such a tribe.
(c)For purposes of this section—
(1)The term “Indian tribe” has the meaning given such term by section 45A(c)(6).
(2)The term “tribal organization” has the meaning given such term by section 4(l) of the Indian Self-Determination and Education Assistance Act.
(3)The term “medical care” has the same meaning as when used in section 213.
(4)The terms “accident or health insurance” and “accident or health plan” have the same meaning as when used in section 105.
(5)The term “dependent” has the meaning given such term by section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof.
(d)Subsection (a) shall not apply to the amount of any qualified Indian health care benefit which is not includible in gross income of the beneficiary of such benefit under any other provision of this chapter, or to the amount of any such benefit for which a deduction is allowed to such beneficiary under any other provision of this chapter.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 4(l) of the Indian Self-Determination and Education Assistance Act, referred to in subsec. (c)(2), is classified to section 5304(l) of Title 25, Indians. Codification Another section 139D, added Pub. L. 111–148, title X, § 10108(f)(1), Mar. 23, 2010, 124 Stat. 913, related to free choice vouchers, prior to repeal by Pub. L. 112–10, div. B, title VIII, § 1858(b)(2)(A), Apr. 15, 2011, 125 Stat. 168, effective as if included in the provisions of, and the

Amendments

made by, the provisions of Pub. L. 111–148 to which it relates, see section 1858(d) of Pub. L. 112–10, set out as an

Effective Date

of 2011 Amendment note under section 36B of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 111–148, title IX, § 9021(c), Mar. 23, 2010, 124 Stat. 874, provided that: “The

Amendments

made by this section [enacting this section] shall apply to benefits and coverage provided after the date of the enactment of this Act [Mar. 23, 2010].” No Inference With Respect to Exclusion From Gross Income of Certain Benefits Pub. L. 111–148, title IX, § 9021(d), Mar. 23, 2010, 124 Stat. 874, provided that: “Nothing in the

Amendments

made by this section [enacting this section] shall be construed to create an inference with respect to the exclusion from gross income of— “(1) benefits provided by an Indian tribe or tribal organization that are not within the scope of this section, and “(2) benefits provided prior to the date of the enactment of this Act [Mar. 23, 2010].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 139D

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73