26 U.S.C. § 103 — Interest on State and local bonds

Source [5] 26 U.S.C. § 103 — Interest on State and local bonds

This is the passage the answer relied on, shown in the document's own words. The highlighted text is the exact excerpt quoted — extracted verbatim by the citation system, so it cannot be fabricated.

Open official source ↗

> Official source: https://uscode.house.gov/quicksearch/get.plx?title=26&section=103 — Internal Revenue Code text as published by the U.S. House Office of the Law Revision Counsel, USLM bulk release point 119-102, retrieved 2026-09-09. Cite as: IRC § 103. **Statutory text only** — editorial notes, amendment history and effective-date notes are omitted; confirm currency for amendments after the release point.

(b) Exceptions › (1) Private activity bond which is not a qualified bond 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).

(3) Bond not in registered form, etc.

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

For purposes of this section and part IV—

Excerpt shown from a longer document — use the official source button above to read the complete publication.