Indian Employment and Investment Act of 1992

Indian Employment and Investment Act of 1992 - Amends the Internal Revenue Code to establish an Indian reservation credit as an investment tax credit for investment in qualified Indian reservation property. Limits such credit to 25 percent for reservation personal property, 33 1/3 percent for new reservation construction property, and 33 1/3 percent for reservation infrastructure investment. Treats real estate rentals on an Indian reservation as the active conduct of a trade or business on such reservation.

Declares that such credit applies only in the event that the Indian unemployment rate on the applicable reservation exceeds 300 percent of the national average unemployment rate at any time during the taxable year or in the immediately preceding taxable year.

Provides for the recapture of such credit in the event such reservation property ceases to be investment property. Sets forth rules with respect to adjusting the basis of such property to reflect the investment credit.

Allows businesses an employment credit of ten percent (30 percent in the case of an employer with at least 85 percent Indian employees) of the sum of the qualified wages and qualified employee health insurance costs paid or incurred during a taxable year. Requires employees to perform substantially all services within an Indian reservation and to reside on or near such reservation. Limits such credit to the first seven years of employment and excludes employees earning more than $30,000 per year. Establishes penalties to be imposed if an employee is terminated before the day one year after the day on which the employee began work for the employer.

Applies certain rules for computing the targeted jobs credit to such employment credit.