TITLE 26 - INTERNAL REVENUE

CHAPTER I - INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY

SUBCHAPTER A - INCOME TAX

PART 1 - INCOME TAXES

1.142 - 1 - Exempt facility bonds.

  (a) Overview. Interest on a private activity bond is not excludable from gross income under section 103(a) unless the bond is a qualified bond.

Under section 141(e)(1)(A), an exempt facility bond issued under section 142 may be a qualified bond.

Under section 142(a), an exempt facility bond is any bond issued as a part of an issue using 95 percent or more of the proceeds for certain exempt facilities.

  (b) Scope. Sections 1.1420 through 1.1423 apply for purposes of the rules for exempt facility bonds under section 142, except that, with respect to net proceeds that have been spent, 1.1422 does not apply to bonds issued under section 142(d) (relating to bonds issued to provide qualified residential rental projects) and section 142(f) (2) and (4) (relating to bonds issued to provide local furnishing of electric energy or gas).

  (c) Effective dates. For effective dates of 1.1420 through 1.1422, see 1.14116.

[T.D. 8712, 62 FR 2302, Jan. 16, 1997]