Tax-exempt bond
Tax-exempt bond means any bond the interest on which is excludable from gross income under section 103. For purposes of section 148, tax-exempt bond includes:
(1) An interest in a regulated investment company to the extent that at least 95 percent of the income to the holder of the interest is interest that is excludable from gross income under section 103; and
(2) A certificate of indebtedness issued by the United States Treasury pursuant to the Demand Deposit State and Local Government Series program described in 31 CFR part 344.