26 U.S. Code § 150 - Definitions and special rules
The term “bond” includes any obligation.
The term “governmental unit” does not include the United States or any agency or instrumentality thereof.
The term “net proceeds” means, with respect to any issue, the proceeds of such issue reduced by amounts in a reasonably required reserve or replacement fund.
Property shall be treated as owned by a governmental unit if it is owned on behalf of such unit.
The term “tax-exempt” means, with respect to any bond (or issue), that the interest on such bond (or on the bonds issued as part of such issue) is excluded from gross income.
In the case of any residence with respect to which financing is provided from the proceeds of a tax-exempt qualified mortgage bond or qualified veterans’ mortgage bond, if there is a continuous period of at least 1 year during which such residence is not the principal residence of at least 1 of the mortgagors who received such financing, then no deduction shall be allowed under this chapter for interest on such financing which accrues on or after the date such period began and before the date such residence is again the principal residence of at least 1 of the mortgagors who received such financing.
Subparagraph (A) shall not apply to the extent the Secretary determines that its application would result in undue hardship and that the failure to meet the requirements of subparagraph (A) resulted from circumstances beyond the mortgagor’s control.
No deduction shall be allowed under this chapter for interest on financing described in subparagraph (A) which accrues during the period beginning on the date such facility is used as described in subparagraph (A)(i) and ending on the date such facility is not so used.
In the case of any facility with respect to which financing is provided from the proceeds of any private activity bond to which this paragraph applies, if such facility is not used for a purpose for which a tax-exempt bond could be issued on the date of such issue, no deduction shall be allowed under this chapter for interest on such financing which accrues during the period beginning on the date such facility is not so used and ending on the date such facility is so used.
Any use with respect to facilities financed with proceeds of an issue which are not required to be used for the exempt purpose of such issue shall not be taken into account.
In the case of any facility where part but not all of the facility is not used for an exempt purpose, only the interest accruing on the financing allocable to such part shall be taken into account.
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection and subsection (b).
A qualified scholarship funding bond shall be treated as a State or local bond.
Any qualified scholarship funding bond, and qualified student loan bond, outstanding on the date of the issuer’s election under this paragraph (and any bond (or series of bonds) issued to refund such a bond) shall not fail to be a tax-exempt bond solely because the issuer ceases to be described in subparagraphs (A) and (B) of paragraph (2) if the issuer meets the requirements of subparagraphs (B) and (C) of this paragraph.
Bonds which are part of an issue which meets the requirements of paragraph (1) shall not be treated as private activity bonds except for purposes of sections 147(f) and 149(d).
The Higher Education Act of 1965, referred to in subsec. (d)(2)(A), (3)(F)(i), is Pub. L. 89–329, Nov. 8, 1965, 79 Stat. 1219, which is classified generally to chapter 28 (§ 1001 et seq.) of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 20 and Tables.
1996—Subsec. (d)(3). Pub. L. 104–188 added par. (3).
1988—Subsec. (b)(1)(A). Pub. L. 100–647, § 1013(a)(23)(C), inserted “tax-exempt” before “qualified mortgage bond”.
Pub. L. 100–647, § 1013(a)(30), inserted before period at end “and before the date such residence is again the principal residence of at least 1 of the mortgagors who received such financing”.
Subsec. (b)(2). Pub. L. 100–647, § 1013(a)(32), inserted at end “If the provisions of prior law corresponding to section 142(d) apply to a refunded bond, such provisions shall apply (in lieu of section 142(d)) to the refunding bond.”
Subsec. (b)(2)(A). Pub. L. 100–647, § 1013(a)(31), substituted “described in paragraph” for “described paragraph”.
Subsec. (b)(4). Pub. L. 100–647, § 1013(a)(23)(A), (B), inserted “and small issue bonds” after “bonds” in heading, and “or a qualified small issue bond” before period at end of subpar. (B).
Subsec. (b)(6). Pub. L. 100–647, § 1013(a)(33), added par. (6).
Subsec. (e)(1)(B). Pub. L. 100–647, § 6182(b), inserted “(including land which is functionally related and subordinate thereto)” after “a firehouse”.
Subsec. (e)(2). Pub. L. 100–647, § 6182(a), inserted at end “For purposes of subparagraph (A), other firefighting services provided in an area shall be disregarded in determining whether an organization is a qualified volunteer fire department if such other firefighting services are provided by a qualified volunteer fire department (determined with the application of this sentence) and such organization and the provider of such other services have been continuously providing firefighting services to such area since January 1, 1981.”
Subsec. (e)(3). Pub. L. 100–647, § 1013(a)(24)(A), added par. (3).
Amendment by section 1013(a)(23), (30)–(33) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Section applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, with subsec. (b) applicable to changes in use (and ownership) after Aug. 15, 1986, but only with respect to financing (including refinancings) provided after such date, and with subsec. (d) applicable to payments made after Aug. 15, 1986, see sections 1311 to 1318 of Pub. L. 99–514, as amended, set out as an Effective Date; Transitional Rules note under section 141 of this title.
Written determinations for this section
These documents, sometimes referred to as "Private Letter Rulings", are taken from the IRS Written Determinations page; the IRS also publishes a fuller explanation of what they are and what they mean. The collection is updated (at our end) daily. It appears that the IRS updates their listing every Friday.
Note that the IRS often titles documents in a very plain-vanilla, duplicative way. Do not assume that identically-titled documents are the same, or that a later document supersedes another with the same title. That is unlikely to be the case.
Release dates appear exactly as we get them from the IRS. Some are clearly wrong, but we have made no attempt to correct them, as we have no way guess correctly in all cases, and do not wish to add to the confusion.
We truncate results at 20000 items. After that, you're on your own.
- 501 c 3 Organization : 2017-12-01
- Definitions and Special Rules : 2017-06-30
- Qualified Scholarship Funding Bond : 2017-06-30
- 501 c 3 Organization : 2015-10-30
- Definitions and Special Rules : 2015-07-10
- Qualified Scholarship Funding Bond : 2015-07-10
- Definitions and Special Rules : 2013-06-28
- Termination : 2013-06-28
- Qualified Scholarship Funding Bond : 2011-07-01
- Definitions and Special Rules : 2011-04-08
- Political Subdivisions : 2011-04-08
- General Rules : 2011-04-08
- State and Local : 2011-04-08
- Interest on State and Local Bonds Formerly Interest on Certain Governmental Obligations : 2011-04-08
- Definitions and Special Rules : 2007-09-14
- Definitions and Special Rules : 2004-07-30
- Definitions and Special Rules : 2004-06-11
- Reasonable Expectations - Artifice or Device : 2004-06-11
- General Rules : 2004-01-23
- Any Obligation : 2002-07-26
- Definitions and Special Rules : 2001-04-06
- Definitions and Special Rules : 2000-09-22
- Taxes on Failure to Distribute Income : 2000-09-22
- Private Foundation Defined : 2000-09-22
- Change in Use of Facilities : 2000-09-15
- General Rules : 2000-09-15
- Advance Refundings : 2000-09-15
- Change in Use of Facilities : 1999-10-22
LII has no control over and does not endorse any external Internet site that contains links to or references LII.