26Title 26The US tax code, read & explained

26 U.S.C. § 103

§ 103. Interest on State and local bonds

141 words · amended 20 times · cited by 39 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Part of the code since 1954. Last changed November 10, 1988 by the Technical and Miscellaneous Revenue Act of 1988.

Every change, newest first (21)
  1. November 10, 1988Technical and Miscellaneous Revenue Act of 1988
  2. October 22, 1986Tax Reform Act of 1986
  3. April 7, 1986Public Law 99-272
  4. July 18, 1984Deficit Reduction Act of 1984
  5. January 14, 1983Public Law 97-473
  6. January 6, 1983Public Law 97-424
  7. September 3, 1982Tax Equity and Fiscal Responsibility Act of 1982
  8. August 13, 1981Economic Recovery Tax Act of 1981
  9. December 5, 1980Public Law 96-499
  10. April 2, 1980Public Law 96-223
  11. April 1, 1980Public Law 96-222
  12. November 6, 1978Revenue Act of 1978
  13. August 8, 1978Public Law 95-339
  14. October 4, 1976Tax Reform Act of 1976
  15. December 31, 1975Public Law 94-182
  16. December 23, 1975Public Law 94-164
  17. December 10, 1971Public Law 92-178
  18. December 30, 1969Tax Reform Act of 1969
  19. October 24, 1968Public Law 90-634
  20. June 28, 1968Public Law 90-364
  21. August 16, 1954Internal Revenue Code of 1954 (original text)

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) Exclusion
  2. (b) Exceptions
  3. (c) Definitions
(a) Exclusion

Except as provided in subsection (b), gross income does not include interest on any State or local bond.

(b) Exceptions

Subsection (a) shall not apply to—

(1) Private activity bond which is not a qualified bond

Any private activity bond which is not a qualified bond (within the meaning of section 141).

(2) Arbitrage bond

Any arbitrage bond (within the meaning of section 148).

(3) Bond not in registered form, etc.

Any bond unless such bond meets the applicable requirements of section 149.

(c) Definitions

For purposes of this section and part IV—

(1) State or local bond

The term “State or local bond” means an obligation of a State or political subdivision thereof.

(2) State

The term “State” includes the District of Columbia and any possession of the United States.