Tap any paragraph to write a margin note. Your notes collect in the Desk below the text and file under cases with @. The side-by-side margin rail opens on a larger screen.

Code · U.S. Code · Title 26 - INTERNAL REVENUE CODE · CHAPTER 1— NORMAL TAXES AND SURTAXES · Subchapter B— Computation of Taxable Income · § 103

§ 103. Interest on State and local bonds

14,602 words·~66 min read·/usc/title-26/section-103

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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.
(Aug. 16, 1954, ch. 736, 68A Stat. 29; Pub. L. 90–364, title I, § 107(a), June 28, 1968, 82 Stat. 266; Pub. L. 90–634, title IV, § 401(a), Oct. 24, 1968, 82 Stat. 1349; Pub. L. 91–172, title VI, § 601(a), Dec. 30, 1969, 83 Stat. 656; Pub. L. 92–178, title III, § 315(a), (b), Dec. 10, 1971, 85 Stat. 529; Pub. L. 94–164, § 7(a), Dec. 23, 1975, 89 Stat. 976; Pub. L. 94–182, title III, § 301(a), Dec. 31, 1975, 89 Stat. 1056; Pub. L. 94–455, title XIX, §§ 1901(a)(17), (b)(8)(B), 1906(b)(13)(A), title XXI, §§ 2105(a)–(c), 2137(d), Oct. 4, 1976, 90 Stat. 1765, 1766, 1794, 1834, 1902, 1931;
Pub. L. 95–339, title II, § 201(a), Aug. 8, 1978, 92 Stat. 467; Pub. L. 95–600, title III, §§ 331(a), (b), 332(a), 333(a), 334(a), (b), title VII, § 703(j)(1), (q)(1), Nov. 6, 1978, 92 Stat. 2839–2841, 2941, 2944; Pub. L. 96–222, title I, § 107(a)(3)(C), Apr. 1, 1980, 94 Stat. 223; Pub. L. 96–223, title II, §§ 241(a), 242(a), 244(a), Apr. 2, 1980, 94 Stat. 281, 283, 286; Pub. L. 96–499, title XI, § 1103, Dec. 5, 1980, 94 Stat. 2669; Pub. L. 97–34, title VIII, §§ 811(a), (b), 812(a), Aug. 13, 1981, 95 Stat. 349, 350;
Pub. L. 97–248, title II, §§ 214(a)–(e), 215(a), (b), 217(a)–(d), 219(a), 221(a), (b), (c)(1), title III, § 310(b)(1), (c)(1), (2), Sept. 3, 1982, 96 Stat. 466–469, 472–474, 477, 478, 596, 599; Pub. L. 97–424, title V, § 547(a), Jan. 6, 1983, 96 Stat. 2199; Pub. L. 97–473, title II, § 202(b)(2), Jan. 14, 1983, 96 Stat. 2609; Pub. L. 98–369, div. A, title IV, § 474(r)(4), title VI, §§ 621–624(a), (b)(2), (3), 626(a), 627, 628(a), (c)–(e), (g), 630, July 18, 1984, 98 Stat. 839, 915–922, 924, 926, 928, 931–933;
Pub. L. 99–272, title XIII, § 13209(e), Apr. 7, 1986, 100 Stat. 323; Pub. L. 99–514, title XIII, § 1301(a), title XVIII, §§ 1864(a)(1), (b)–(e), 1865(a), 1869(a), (b), 1870, 1871(a)(1), (b), 1899A(2)–(4), Oct. 22, 1986, 100 Stat. 2602, 2885, 2886, 2888, 2890, 2891, 2958; Pub. L. 100–647, title I, § 1013(a)(34)(A), (c)(12)(A), Nov. 10, 1988, 102 Stat. 3544, 3547.)
Connections220 cite this · traces to 17
Cited by 220 sections · top 60
statutes-at-large
Traces to 17 documents
262 references not yet in our index
  • Aug. 16, 1954, ch. 736
  • 68A Stat. 29
  • Pub. L. 90–364, title I, § 107(a)
  • 82 Stat. 266
  • Pub. L. 90–634, title IV, § 401(a)
  • 82 Stat. 1349
  • Pub. L. 91–172, title VI, § 601(a)
  • 83 Stat. 656
  • Pub. L. 92–178, title III, § 315(a)
  • 85 Stat. 529
  • Pub. L. 94–164, § 7(a)
  • 89 Stat. 976
  • Pub. L. 94–182, title III, § 301(a)
  • 89 Stat. 1056
  • Pub. L. 94–455, title XIX
  • 90 Stat. 1765
  • Pub. L. 95–339, title II, § 201(a)
  • 92 Stat. 467
  • Pub. L. 95–600, title III
  • 92 Stat. 2839–2841
  • Pub. L. 96–222, title I, § 107(a)(3)(C)
  • 94 Stat. 223
  • Pub. L. 96–223, title II
  • 94 Stat. 281
  • Pub. L. 96–499, title XI, § 1103
  • 94 Stat. 2669
  • Pub. L. 97–34, title VIII
  • 95 Stat. 349
  • Pub. L. 97–248, title II
  • 96 Stat. 466–469
  • Pub. L. 97–424, title V, § 547(a)
  • 96 Stat. 2199
  • Pub. L. 97–473, title II, § 202(b)(2)
  • 96 Stat. 2609
  • Pub. L. 98–369, div. A, title IV, § 474(r)(4)
  • 98 Stat. 839
  • Pub. L. 99–272, title XIII, § 13209(e)
  • 100 Stat. 323
  • Pub. L. 99–514, title XIII, § 1301(a)
  • 100 Stat. 2602
+ 222 more
Citation graph
cites case law
§ 103
Interest on State and local bonds
Stat.×132
U.S.C.×39
Fed. Reg.×27
C.F.R.×18
Stat. Comp.×4
ActAug. 16, 1954, ch. 736
Stat.68A Stat. 29
Pub. L.Pub. L. 90–364, title I, § 107(a)
Cites 279 · showing 12Cited by 220 across 5 sources
★   the supreme law of the land   ★
Don't Tread on Me
E Pluribus Unum — out of many, one

"If you don't know your rights, you don't have any."

Marginalia · a citizen's law index
A research desk, not legal advice. Always read the cited source before relying on a summary.
Questions or an issue? support@self-law.org
disclaimerMarginalia is a research index, not a law firm. Nothing on this site is legal, tax, or financial advice and no attorney–client relationship is formed by using it. Statutes, regulations, and case law change; summaries, search results, AI output, and member posts may be incomplete, out of date, or wrong. Any interpretation drawn from material on this site should be validated by a licensed attorney in your jurisdiction before you act on it.