diff --git a/build/terraform b/build/terraform
index 51a5322af585..de903bf1a7da 160000
--- a/build/terraform
+++ b/build/terraform
@@ -1 +1 @@
-Subproject commit 51a5322af58545ccf5fc4f53cd9a656f9e221a1c
+Subproject commit de903bf1a7da3e1453940034fd0c3199ee7254a5
diff --git a/build/terraform-beta b/build/terraform-beta
index 9edf009e038e..02e48b5ef850 160000
--- a/build/terraform-beta
+++ b/build/terraform-beta
@@ -1 +1 @@
-Subproject commit 9edf009e038e847cf4fffd6f60414ae25c975156
+Subproject commit 02e48b5ef85005d68b152a0387892953489ccf3e
diff --git a/third_party/terraform/resources/resource_compute_instance_iam_test.go b/third_party/terraform/resources/resource_compute_instance_iam_test.go
index aeb4724a9eff..e3a67b72ca46 100644
--- a/third_party/terraform/resources/resource_compute_instance_iam_test.go
+++ b/third_party/terraform/resources/resource_compute_instance_iam_test.go
@@ -130,7 +130,7 @@ func testAccComputeInstanceIamMember_basic(zone, instanceName, roleId string) st
     zone          = "${google_compute_instance.test_vm.zone}"
     instance_name = "${google_compute_instance.test_vm.name}"
     role          = "%s"
-    member        = "user:admin@hashicorptest.com"
+    member        = "user:Admin@hashicorptest.com"
   }
 
 `, zone, instanceName, roleId)
@@ -157,7 +157,7 @@ func testAccComputeInstanceIamPolicy_basic(zone, instanceName, roleId string) st
   data "google_iam_policy" "foo" {
     binding {
       role    = "%s"
-      members = ["user:admin@hashicorptest.com"]
+      members = ["user:Admin@hashicorptest.com"]
     }
   }
 
@@ -194,7 +194,7 @@ func testAccComputeInstanceIamBinding_basic(zone, instanceName, roleId string) s
     zone          = "${google_compute_instance.test_vm.zone}"
     instance_name = "${google_compute_instance.test_vm.name}"
     role          = "%s"
-    members       = ["user:admin@hashicorptest.com"]
+    members       = ["user:Admin@hashicorptest.com"]
   }
 
 `, zone, instanceName, roleId)
@@ -223,7 +223,7 @@ func testAccComputeInstanceIamBinding_update(zone, instanceName, roleId string)
     zone          = "${google_compute_instance.test_vm.zone}"
     instance_name = "${google_compute_instance.test_vm.name}"
     role          = "%s"
-    members       = ["user:admin@hashicorptest.com", "user:paddy@hashicorp.com"]
+    members       = ["user:Admin@hashicorptest.com", "user:paddy@hashicorp.com"]
   }
 
 `, zone, instanceName, roleId)
diff --git a/third_party/terraform/resources/resource_google_project_iam_policy.go b/third_party/terraform/resources/resource_google_project_iam_policy.go
index 3f2b78742db9..50090ebceaf1 100644
--- a/third_party/terraform/resources/resource_google_project_iam_policy.go
+++ b/third_party/terraform/resources/resource_google_project_iam_policy.go
@@ -6,6 +6,7 @@ import (
 	"log"
 	"reflect"
 	"sort"
+	"strings"
 
 	"github.com/hashicorp/errwrap"
 	"github.com/hashicorp/terraform/helper/schema"
@@ -217,6 +218,9 @@ func derefBindings(b []*cloudresourcemanager.Binding) []cloudresourcemanager.Bin
 
 	for i, v := range b {
 		db[i] = *v
+		for j, m := range db[i].Members {
+			db[i].Members[j] = strings.ToLower(m)
+		}
 		sort.Strings(db[i].Members)
 	}
 	return db
diff --git a/third_party/terraform/resources/resource_iam_binding.go b/third_party/terraform/resources/resource_iam_binding.go
index ad0225d44b82..1a6cd7ba1733 100644
--- a/third_party/terraform/resources/resource_iam_binding.go
+++ b/third_party/terraform/resources/resource_iam_binding.go
@@ -20,7 +20,11 @@ var iamBindingSchema = map[string]*schema.Schema{
 		Type:     schema.TypeSet,
 		Required: true,
 		Elem: &schema.Schema{
-			Type: schema.TypeString,
+			Type:             schema.TypeString,
+			DiffSuppressFunc: caseDiffSuppress,
+		},
+		Set: func(v interface{}) int {
+			return schema.HashString(strings.ToLower(v.(string)))
 		},
 	},
 	"etag": {
diff --git a/third_party/terraform/resources/resource_iam_member.go b/third_party/terraform/resources/resource_iam_member.go
index d1a37544caec..87fcc1293ad8 100644
--- a/third_party/terraform/resources/resource_iam_member.go
+++ b/third_party/terraform/resources/resource_iam_member.go
@@ -17,9 +17,10 @@ var IamMemberBaseSchema = map[string]*schema.Schema{
 		ForceNew: true,
 	},
 	"member": {
-		Type:     schema.TypeString,
-		Required: true,
-		ForceNew: true,
+		Type:             schema.TypeString,
+		Required:         true,
+		ForceNew:         true,
+		DiffSuppressFunc: caseDiffSuppress,
 	},
 	"etag": {
 		Type:     schema.TypeString,
@@ -98,7 +99,7 @@ func resourceIamMemberCreate(newUpdaterFunc newResourceIamUpdaterFunc) schema.Cr
 		if err != nil {
 			return err
 		}
-		d.SetId(updater.GetResourceId() + "/" + p.Role + "/" + p.Members[0])
+		d.SetId(updater.GetResourceId() + "/" + p.Role + "/" + strings.ToLower(p.Members[0]))
 		return resourceIamMemberRead(newUpdaterFunc)(d, meta)
 	}
 }
@@ -138,7 +139,7 @@ func resourceIamMemberRead(newUpdaterFunc newResourceIamUpdaterFunc) schema.Read
 		}
 		var member string
 		for _, m := range binding.Members {
-			if m == eMember.Members[0] {
+			if strings.ToLower(m) == strings.ToLower(eMember.Members[0]) {
 				member = m
 			}
 		}
@@ -179,7 +180,7 @@ func resourceIamMemberDelete(newUpdaterFunc newResourceIamUpdaterFunc) schema.De
 			binding := p.Bindings[bindingToRemove]
 			memberToRemove := -1
 			for pos, m := range binding.Members {
-				if m != member.Members[0] {
+				if strings.ToLower(m) != strings.ToLower(member.Members[0]) {
 					continue
 				}
 				memberToRemove = pos