US Code

Public Law 119-73 (01/23/2026)

26 U.S.C. § 103

Interest on State and local bonds

(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. 73668A Stat. 29Pub. L. 90–364, title I, § 107(a)82 Stat. 266Pub. L. 90–634, title IV, § 401(a)82 Stat. 1349Pub. L. 91–172, title VI, § 601(a)83 Stat. 656Pub. L. 92–178, title III, § 315(a)85 Stat. 529Pub. L. 94–164, § 7(a)89 Stat. 976Pub. L. 94–182, title III, § 301(a)89 Stat. 1056Pub. L. 94–455, title XIX90 Stat. 1765Pub. L. 95–339, title II, § 201(a)92 Stat. 467Pub. L. 95–600, title III92 Stat. 2839–2841Pub. L. 96–222, title I, § 107(a)(3)(C)94 Stat. 223Pub. L. 96–223, title II94 Stat. 281Pub. L. 96–499, title XI, § 110394 Stat. 2669Pub. L. 97–34, title VIII95 Stat. 349Pub. L. 97–248, title II96 Stat. 466–469Pub. L. 97–424, title V, § 547(a)96 Stat. 2199Pub. L. 97–473, title II, § 202(b)(2)96 Stat. 2609Pub. L. 98–369, div. A, title IV, § 474(r)(4)98 Stat. 839Pub. L. 99–272, title XIII, § 13209(e)100 Stat. 323Pub. L. 99–514, title XIII, § 1301(a)100 Stat. 2602Pub. L. 100–647, title I, § 1013(a)(34)(A)102 Stat. 3544(, ; , , ; , , ; , , ; , (b), , ; , , ; , , ; , §§ 1901(a)(17), (b)(8)(B), 1906(b)(13)(A), title XXI, §§ 2105(a)–(c), 2137(d), , , 1766, 1794, 1834, 1902, 1931; , , ; , §§ 331(a), (b), 332(a), 333(a), 334(a), (b), title VII, § 703(j)(1), (q)(1), , , 2941, 2944; , , ; , §§ 241(a), 242(a), 244(a), , , 283, 286; , , ; , §§ 811(a), (b), 812(a), , , 350; , §§ 214(a)–(e), 215(a), (b), 217(a)–(d), 219(a), 221(a), (b), (c)(1), title III, § 310(b)(1), (c)(1), (2), , , 472–474, 477, 478, 596, 599; , , ; , , ; , title VI, §§ 621–624(a), (b)(2), (3), 626(a), 627, 628(a), (c)–(e), (g), 630, , , 915–922, 924, 926, 928, 931–933; , , ; , title XVIII, §§ 1864(a)(1), (b)–(e), 1865(a), 1869(a), (b), 1870, 1871(a)(1), (b), 1899A(2)–(4), , , 2885, 2886, 2888, 2890, 2891, 2958; , (c)(12)(A), , , 3547.)

Editorial Notes

Amendments

Pub. L. 100–647, § 1013(c)(12)(A)Pub. L. 99–5141988—Subsec. (b)(6)(N). , amended subpar. (N), as in effect on the day before the date of the enactment of [], by redesignating cls. (ii) and (iii) as (iii) and (iv), respectively, and by striking out cl. (i) and inserting in lieu thereof the following new cls.:

In general“(i) .—Except as provided in clause (ii), this paragraph shall not apply to any obligation issued after .

Certain refundings“(ii) .—This paragraph shall apply to any obligation (or series of obligations) issued to refund an obligation issued on or before , if—

“(I) the average maturity date of the issue of which the refunding obligation is a part is not later than the average maturity date of the obligations to be refunded by such issue,

“(II) the amount of the refunding obligation does not exceed the outstanding amount of the refunded obligation, and

“(III) the proceeds of the refunding obligation are used to redeem the refunded obligation not later than 90 days after the date of the issuance of the refunding obligation.

For purposes of subclause (I), average maturity shall be determined in accordance with subsection (b)(14)(B)(i).”

Pub. L. 100–647, § 1013(a)(34)(A)Pub. L. 99–514Subsec. (c)(7). , amended par. (7), as in effect on the day before the date of the enactment of [], by substituting “necessary” for “necessary”.

Pub. L. 99–514, § 1301(a)1986—, in amending section generally, substituted “Interest on State and local bonds” for “Interest on certain governmental obligations” in section catchline.

Pub. L. 99–514, § 1301(a)Subsec. (a). , substituted “Exclusion” for “General rule” in heading and amended text generally. Prior to amendment, text read as follows: “Gross income does not include interest on—

“(1) the obligations of a State, a Territory, or a possession of the United States, or any political subdivision of any of the foregoing, or of the District of Columbia; and

“(2) qualified scholarship funding bonds.”

Pub. L. 99–514, § 1301(a)Subsec. (b). , in amending section generally, substituted provision relating to exceptions for provision relating to industrial development bonds.

Pub. L. 99–272Subsec. (b)(11). struck out par. (11) relating to pollution control facilities acquired by regional pollution control authorities.

Pub. L. 99–514, § 1871(b)Subsec. (b)(13), (14)(A). , substituted “and (6)” for “(6), and (7)”.

Pub. L. 99–514, § 1870Subsec. (b)(16)(A). , substituted “clause (ii)” for “clause (i)”.

Pub. L. 99–514, § 1871(b)Subsec. (b)(17)(A). , substituted “and (6)” for “(6), and (7)”.

Pub. L. 99–514, § 1301(a)Subsec. (c). , in amending section generally, substituted provision relating to definitions for provision relating to arbitrage.

Pub. L. 99–514, § 1301(a)Subsecs. (d) to (g). , in amending section generally, struck out subsecs. (d) to (g) which related to certain irrigation dams, qualified scholarship funding bonds, certain federally guaranteed obligations, and qualified steam-generating or alcohol-producing facilities, respectively.

Pub. L. 99–514, § 1301(a)Subsec. (h). , in amending section generally, struck out subsec. (h) which provided that obligations must not be guaranteed.

Pub. L. 99–514, § 1899A(2)Subsec. (h)(2)(A). , substituted “guaranteed” for “guaranted”.

Pub. L. 99–514, § 1865(a)Subsec. (h)(5)(A). , struck out “the United States,” after “program of”.

Pub. L. 99–514, § 1301(a)Subsecs. (i) to (k). , in amending section generally, struck out subsecs. (i) to (k) which related to obligations of certain volunteer fire departments, provided that obligations must be in registered form to be tax-exempt, and required public approval for industrial development bonds, respectively.

lPub. L. 99–514, § 1301(a)lSubsec. (). , in amending section generally, struck out subsec. () which related to information reporting requirements for certain bonds.

lPub. L. 99–514, § 1864(d)Subsec. ()(2)(F). , added subpar. (F) which read: “if such obligation is a private activity bond (as defined in subsection (n)(7)), such information as the Secretary may require for purposes of determining whether the requirements of subsection (n) are met with respect to such obligation.”

Pub. L. 99–514, § 1301(a)Subsec. (m). , in amending section generally, struck out subsec. (m) which related to obligations exempt other than under this title.

Pub. L. 99–514, § 1871(a)(1)lolSubsec. (m)(1). , substituted “(j), (k), (), (n), and ()” for “(k), (), and (n)”.

Pub. L. 99–514, § 1899A(3)Subsec. (m)(3)(B). , substituted “608(a)(6)(A)” for “608(6)(A)”.

Pub. L. 99–514, § 1301(a)Subsec. (n). , in amending section generally, struck out subsec. (n) which related to limitation on aggregate amount of private activity bonds issued during any calendar year.

Pub. L. 99–514, § 1864(b)Subsec. (n)(6)(A), (B)(i). , substituted “governmental units or other authorities” for “governmental units”.

Pub. L. 99–514, § 1864(c)Subsec. (n)(7)(C)(i). , substituted “all of the property to be financed by the obligation” for “the property described in such paragraph”.

Pub. L. 99–514, § 1864(e)Subsec. (n)(10)(B). , substituted “identify project” for “specify project” in heading and “identify (with reasonable specificity) the project” for “specify the project” in text of subpar. (B)(i).

Pub. L. 99–514, § 1864(e)(2)Subsec. (n)(10)(D). , substituted “any identification or specification” for “any specification”.

Pub. L. 99–514, § 1864(a)(1)Subsec. (n)(13). , added par. (13).

oPub. L. 99–514, § 1301(a)oSubsec. (). , in amending section generally, struck out subsec. () relating to consumer loan bonds.

Pub. L. 99–514, § 1869(a), (b)(1), substituted “Private loan bonds” for “Consumer loan bonds” in subsection and par. (2) headings, “private loan bond” for “consumer loan bond” in text of pars. (1), (2)(A) and (B), and “subsection (c)(6)(H)(i)” for “subsection (c)(6)(G)(i)” in par. (2)(C)(ii).

Pub. L. 99–514, § 1869(b)(2)o, redesignated subsec. (), relating to cross references, as (p).

Pub. L. 99–514, § 1301(a)Subsec. (p). , in amending section generally, struck out subsec. (p) which related to cross references.

Pub. L. 99–514, § 1869(b)(2)o, redesignated former subsec. (), relating to cross references, as (p).

Pub. L. 99–514, § 1899A(4)48 U.S.C. 140348 U.S.C. 1403Subsec. (p)(4). , substituted “ ()” for “ ()”.

Pub. L. 98–369, § 628(e)1984—Subsec. (b)(4). , inserted “For purposes of subparagraph (A), any property shall not be treated as failing to be residential rental property merely because part of the building in which such property is located is used for purposes other than residential rental purposes.”

Pub. L. 98–369, § 474(r)(4)Subsec. (b)(6)(F)(iv). , substituted “section 30(b)(2)(A)” for “section 44F(b)(2)(A)”.

Pub. L. 98–369, § 630Subsec. (b)(6)(N). , designated existing provisions as cl. (i) and added cls. (ii) and (iii).

Pub. L. 98–369, § 628(c)Subsec. (b)(6)(P). , added subpar. (P).

Pub. L. 98–369, § 628(g)Subsec. (b)(7). , repealed par. (7) which related to advance refunding of qualified public facilities.

Pub. L. 98–369, § 628(d)Subsec. (b)(13). , inserted “For purposes of this paragraph— (A) a partnership and each of its partners (and their spouses and minor children) shall be treated as related persons, and (B) an S corporation and each of its shareholders (and their spouses and minor children) shall be treated as related persons.”

Pub. L. 98–369, § 623Subsec. (b)(15). , added par. (15).

Pub. L. 98–369, § 627Subsec. (b)(16) to (18). , added pars. (16) to (18).

Pub. L. 98–369, § 624(b)(2)Subsec. (c). , struck out “bonds” after “Arbitrage” in heading.

Pub. L. 98–369, § 624(b)(3)Subsec. (c)(1). , inserted “to arbitrage bonds” in heading.

Pub. L. 98–369, § 624(a)Subsec. (c)(6), (7). , added par. (6) and redesignated former par. (6) as (7).

Pub. L. 98–369, § 622Subsec. (h). , amended subsec. (h) generally, in par. (1) substituting provisions that obligations are not included in the section if they are federally guaranteed for provisions which excluded obligations guaranteed, in whole or part, by the U.S. under a program to conserve energy, or under other Federal or State programs, in par. (2) substituting provisions defining “federally guaranteed” for provisions setting forth obligations to which this subsection applies, and adding pars. (3) to (5).

Pub. L. 98–369, § 628(a)(1)lSubsec. (m)(1). , inserted “In the case of an obligation issued after , such obligation shall not be treated as described in this paragraph unless the appropriate requirements of subsections (b), (c), (h), (k), (), and (n) of this section and section 103A are met with respect to such obligation. For purposes of applying such requirements, a possession of the United States shall be treated as a State; except that clause (ii) of subsection (n)(4)(A) shall not apply.”

Pub. L. 98–369, § 628(a)(2)Subsec. (m)(2)(B). , substituted “is exempt from tax under this title without regard to any provision of law which is not contained in this title and which is not contained in a revenue Act” for “is exempt from taxation under any provision of this title”.

Pub. L. 98–369, § 628(a)(3)Subsec. (m)(3). , added par. (3).

Pub. L. 98–369, § 621oSubsec. (n). , added subsec. (n). Former subsec. (n), relating to cross references, redesignated ().

oPub. L. 98–369, § 626(a)oSubsec. (). , added subsec. () relating to consumer loan bonds.

Pub. L. 98–369, § 621o, redesignated subsec. (n), relating to cross references, as ().

Pub. L. 97–424, § 547(a)1983—Subsec. (m). , added subsec. (m). Former subsec. (m) redesignated (n).

Pub. L. 97–473section 722(b) of Pub. L. 98–369 amended subsec. (m) generally, adding pars. (1) and (2), redesignating former pars. (1) to (3) as (3) to (5), respectively, and striking out par. (24) which had provided reference regarding exempt-interest dividends to section 852(b)(5)(B.) See , set out as a note below.

Pub. L. 97–424, § 547(a)Subsec. (n). , redesignated former subsec. (m), relating to cross references, as (n).

Pub. L. 97–248, § 215(b)(2)1982—Subsec. (b)(2). , substituted “For purposes of this section” for “For purposes of this subsection”.

Pub. L. 97–248Subsec. (b)(4). , §§ 217(a)(1), (b), 221(a), (c)(1), 310(c)(1), in subpar. (A) substituted “if at all times during the qualified project period” for “if each obligation issued pursuant to the issue is in registered form and if” after “residential rental property”, and struck out “(within the meaning of section 167(k)(3)(B))” after “low or moderate income”, added subpar. (J), struck out provision that for purposes of subpar. (A), “targeted area project” meant a project located in a qualified census tract (within the meaning of section 103A(k)(2)) or an area of chronic economic distress (within the meaning of section 103A(k)(3)) and, in last sentence, substituted “electric energy or gas from” for “electric energy from”.

Pub. L. 97–248, § 217(a)(3)Subsec. (b)(6)(C). , substituted “paragraph (13)” for “paragraph (7)”.

Pub. L. 97–248, § 214(d)Subsec. (b)(6)(F)(iv). , added cl. (iv).

Pub. L. 97–248, § 214(a)Subsec. (b)(6)(K) to (O). –(c), (e), added subpars. (K) to (O).

Pub. L. 97–248, § 217(c)Subsec. (b)(9)(A). , inserted “ferry,” after “rail car” in provisions preceding cl. (i), and in cl. (ii), inserted “(or, in the case of a ferry, mass transportation services)” after “mass commuting services”.

Pub. L. 97–248, § 217(a)(2)Subsec. (b)(10). , added par. (10). Former par. (10) redesignated (13).

Pub. L. 97–248, § 217(d)Subsec. (b)(11). , added par. (11).

Pub. L. 97–248, § 221(b)Subsec. (b)(12). , added par. (12). [Provisions of par. (12)(A) were formerly contained, as undesignated provisions, in par. (4).]

Pub. L. 97–248, § 217(a)(2)Subsec. (b)(13). , redesignated former par. (10) as (13).

Pub. L. 97–248, § 219(a)Subsec. (b)(14). , added par. (14).

Pub. L. 97–248, § 310(c)(2)Subsec. (h). , substituted “must not be guaranteed or subsidized” for “must be in registered form and not guaranteed or subsidized” in heading, and in par. (1) struck out subpar. (A) reading “such obligation is not issued in registered form”, and redesignated subpars. (B) and (C) as (A) and (B), respectively.

Pub. L. 97–248, § 310(b)(1)Subsec. (j). , added subsec. (j). Former subsec. (j), relating to cross references, redesignated (m).

Pub. L. 97–248, § 215(a)Subsec. (k). , added subsec. (k).

lPub. L. 97–248, § 215(b)(1)lSubsec. (). , added subsec. ().

Pub. L. 97–248Subsec. (m). , §§ 215(a), (b)(1), 310(b)(1), redesignated former subsec. (j), relating to cross references, as (m).

Pub. L. 97–34, § 811(a)1981—Subsec. (b)(4)(I). , added subpar. (I).

Pub. L. 97–34, § 811(b)Subsec. (b)(9), (10). , added par. (9) and redesignated former par. (9) as (10).

Pub. L. 97–34, § 812(a)Subsecs. (i), (j). , added subsec. (i) and redesignated former subsec. (i) as (j).

Pub. L. 96–499, § 1103(b)1980—Subsec. (b)(4). , inserted before last sentence provisions defining “targeted area project” for purposes of subpar. (A).

Pub. L. 96–499, § 1103(a)Subsec. (b)(4)(A). , substituted provisions relating to low or moderate income residential rental property for provisions relating to residential real property for family units.

Pub. L. 96–223, § 242(a)(1)Subsec. (b)(4)(H). , added subpar. (H).

Pub. L. 96–499, § 1103(c)Subsec. (b)(6)(J). , added subpar. (J).

Pub. L. 96–223, § 242(a)(2)Subsec. (b)(8), (9). , added par. (8) and redesignated former par. (8) as (9).

Pub. L. 96–222, § 107(a)(3)(C)Pub. L. 96–500, § 703(q)(1)Subsec. (c)(5). , amended the directory language of . See 1978 Amendment note below for subsec. (c)(5).

Pub. L. 96–223, § 241(a)Subsec. (g). , added subsec. (g). Former subsec. (g) redesignated (i).

Pub. L. 96–223, § 244(a)Subsec. (h). , added subsec. (h).

Pub. L. 96–223Subsec. (i). , §§ 241(a), 244(a), redesignated former subsec. (g) as (i).

Pub. L. 95–600, § 703(j)(1)(A)1978—Subsec. (b)(1). , substituted “subsection (a)(1) or (2)” for “subsection (a)(1)” in heading.

Pub. L. 95–600Subsec. (b)(4). , §§ 332(a), 333(a), in subpar. (G)(i) inserted reference to electric utility, industrial, agricultural, or commercial users and added subpar. (G)(ii) and provision following subpar. (G)(ii) relating to the local furnishing of electric energy.

Pub. L. 95–600, § 331(a)Subsec. (b)(6)(D). , substituted in heading and cl. (i) “$10,000,000” for “$5,000,000”.

Pub. L. 95–600, § 331(b)Subsec. (b)(6)(I). , added subpar. (I).

Pub. L. 95–600, § 334(a)Subsec. (b)(7), (8). , (b), added par. (7), redesignated former par. (7) as (8) and, as so redesignated, substituted “(6), and (7)” for “and (6)”.

Pub. L. 95–600, § 703(j)(1)(B)Subsec. (c)(1). , substituted in heading and text “(a)(1) or (2)” for “(a)(1) or (4)”.

Pub. L. 95–600, § 703(j)(1)(C)Subsec. (c)(2)(A). , substituted “subsection (a)(1) or (2)” for “subsection (a)(1) or (2) or (4)”.

Pub. L. 95–600, § 703(j)(1)(D)Pub. L. 96–222, § 107(a)(3)(C)Subsec. (c)(5). , (q)(1), as amended by , substituted “section 438 of the Higher Education Act of 1965” for “section 2 of the Emergency Insured Student Loan Act of 1969” and “paragraph (2)(A)” for “subsection (d)(2)(A)”.

Pub. L. 95–600, § 703(j)(1)(E)Subsec. (d). , substituted “subsection (b)(4)(G)” for “subsection (c)(4)(G)”.

Pub. L. 95–339Subsec. (e). redesignated second subsec. (e), relating to cross references, as (g).

Pub. L. 95–339Subsec. (f). added subsec. (f).

Pub. L. 95–339Subsec. (g). redesignated second subsec. (e), relating to cross references, as (g).

Pub. L. 94–4551976—Subsec. (a). , §§ 1901(a)(17)(A), 2105(a), added par. (2) relating to qualified scholarship funding bonds. Former pars. (2) and (3), relating to obligations of the United States and to the obligations of corporations organized under an Act of Congress, were struck out.

Pub. L. 94–455, § 1901(a)(17)(B)Subsec. (b). , (C), redesignated subsec. (c) as (b) and in par. (1) of subsec. (b) as so redesignated substituted “subsection (a)(1) or (2)” for “subsection (a)(1)”. Former subsec. (b), which created an exception to the rule that gross income did not include interest on obligations of the United States, by providing that the exception did not apply to obligations of the United States (with specified exceptions) unless under the authorizing Acts such interest is wholly exempt from the taxes imposed by this subtitle, was struck out.

Pub. L. 94–455Subsec. (c). , §§ 1901(a)(17)(B), (D), (b)(8)(B), 1906(b)(13)(A), 2105(c), redesignated subsec. (d) as (c) and, in subsec. (c) as so redesignated, substituted “(a)(1) or (4)” for “(a)(1)” in par. (1) and “(a)(1) or (2) or (4)” for “(a)(1)” in par. (2)(A), substituted “educational organization described in section 170(b)(1)(A)(ii)” for “educational institution (within the meaning of section 151(e)(4))” in par. (3)(A), added par. (5), redesignated former par. (5) as (6), and in par. (6) as so redesignated substituted “Secretary” for “Secretary or his delegate”. Former subsec. (c) redesignated (b).

Pub. L. 94–455, § 1901(a)(17)(B)Subsec. (d). , redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).

Pub. L. 94–455Subsec. (e). , §§ 1901(a)(17)(B), (E), 2105(b), 2137(d), added subsec. (e) relating to qualified scholarship funding bonds, redesignated former subsec. (f) relating to cross references as a second subsec. (e), reduced the number of cross references in subsec. (e) as so redesignated from twenty-three (which made reference to various obligations of the United States and of corporations organized under Acts of Congress) to three, relating, respectively, to Puerto Rican bonds, Virgin Islands insular and municipal bonds, and certain obligations issued under title I of the Housing Act of 1949, and inserted a fourth cross reference, designated as par. (24) relating to the treatment of exempt-interest dividends. Former subsec. (e) redesignated (d).

Pub. L. 94–455, § 1901(a)(17)(B)Subsec. (f). , redesignated subsec. (f), relating to cross references, as (e).

Pub. L. 94–182Pub. L. 94–1641975—Subsecs. (e), (f). and made identical amendments, adding subsec. (e) and redesignating former subsec. (e) as (f).

Pub. L. 92–178, § 315(a)(1)1971—Subsec. (c)(4)(E). , substituted “energy or gas,” for “energy, gas, or water or”.

Pub. L. 92–178, § 315(a)(2)Subsec. (c)(4)(F). , substituted “, or” for a period.

Pub. L. 92–178, § 315(a)(3)Subsec. (c)(4)(G). , added subpar. (G).

Pub. L. 92–178, § 315(b)Subsec. (c)(6)(F)(iii). , substituted “$1,000,000” for “$250,000”.

Pub. L. 91–1721969—Subsecs. (d), (e). added subsec. (d) and redesignated former subsec. (d) as (e).

Pub. L. 90–3641968—Subsec. (c). added subsec. (c). Former subsec. (c) redesignated (d).

Pub. L. 90–634Subsec. (c)(6)(D) to (H). added subpars. (D) to (H).

Pub. L. 90–364Subsec. (d). redesignated former subsec. (c) as (d).

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Pub. L. 100–647, title I, § 1013(a)(34)(B)102 Stat. 3544

“Subparagraph (A) [amending this section] shall apply to obligations sold after , and to which Treasury regulation section 1.103–13 (1979) was provided to apply.”
, , , provided that:

Effective Date of 1986 Amendment

section 1301(a) of Pub. L. 99–514Pub. L. 99–514section 141 of this titleAmendment by applicable to bonds issued after , except as otherwise provided, see sections 1311 to 1318 of , set out as an Effective Date; Transitional Rules note under .

Pub. L. 99–514Pub. L. 98–369, div. Asection 1881 of Pub. L. 99–514section 48 of this titleAmendment by sections 1864(b)–(e), 1865(a), 1869(a), (b), 1870, and 1871(b) of effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, , to which such amendment relates, see , set out as a note under .

Pub. L. 99–514, title XVIII, § 1864(a)(2)100 Stat. 2885

“(A)
Except as provided in subparagraph (B), the amendment made by paragraph (1) [amending this section] shall apply to obligations issued after the date of the enactment of this Act [] in taxable years ending after such date.
“(B)
At the election of the issuer (made at such time and in such manner as the Secretary of the Treasury or his delegate shall prescribe), the amendment made by paragraph (1) shall apply to any obligation issued on or before the date of the enactment of this Act.”
, , , provided that:

Pub. L. 99–514, title XVIII, § 1871(a)(2)100 Stat. 2891

“The amendment made by paragraph (1) [amending this section] shall apply to obligations issued after , in taxable years ending after such date.”
, , , provided that:

Effective Date of 1984 Amendment

section 474(r)(4) of Pub. L. 98–369section 475(a) of Pub. L. 98–369section 21 of this titleAmendment by applicable to taxable years beginning after , and to carrybacks from such years, see , set out as a note under .

Pub. L. 98–369, div. A, title VI, § 624(c)98 Stat. 924Pub. L. 99–514, title XVIII, § 1867(a)100 Stat. 2888

“(1)

In general .—

section 103A of this titleExcept as otherwise provided in this subsection, the amendments made by this section [amending this section and ] shall apply with respect to bonds issued after .
“(2)

Exception .—

The amendments made by this section shall not apply to obligations issued for the Essex County New Jersey Resource Recovery Project authorized by the Port Authority of New York and New Jersey on , as part of an agreement approved by Essex County, New Jersey, on , and approved by the State of New Jersey on . The aggregate face amount of bonds to which this paragraph applies shall not exceed $350,000,000.”
, , , as amended by , , , provided that:

Pub. L. 98–369, div. A, title VI, § 626(b)98 Stat. 927Pub. L. 99–514, § 2100 Stat. 2095Pub. L. 100–647, title I, § 1013(g)(24)102 Stat. 3554

“(1)

In general .—

Except as otherwise provided in this subsection the amendment made by subsection (a) [amending this section] shall apply to obligations issued after the date of enactment of this Act [].
“(2)

Exceptions for certain student loan programs.—

“(A)

In general .—

Program

Amount of Allowable Obligations

Colorado Student Obligation Bond Authority

$60 million

Connecticut Higher Education Supplementary Loan Authority

$15.5 million

District of Columbia

$50 million

Illinois Higher Education Authority

$70 million

State of Iowa

$16 million

Louisiana Public Facilities Authority

$75 million

Maine Health and Higher Education Facilities Authority

$5 million

Maryland Higher Education Supplemental Loan Program

$24 million

Massachusetts College Student Loan Authority

$90 million

Minnesota Higher Education Coordinating Board

$60 million

New Hampshire Higher Education and Health Facilities Authority

$39 million

New York Dormitory Authority

$120 million

Pennsylvania Higher Education Assistance Agency

$300 million

Georgia Private Colleges and University Authority

$31 million

Wisconsin State Building Commission

$60 million

South Dakota Health and Educational Facilities Authority

$6 million
The amendments made by this section [amending this section] shall not apply to obligations issued by a program described in the following table to the extent the aggregate face amount of such obligations does not exceed the amount of allowable obligations specified in the following table with respect to such program:
“(B)

Pennsylvania higher education assistance agency .—

Subparagraph (A) shall apply to obligations issued by the Pennsylvania Higher Education Assistance Agency only if such obligations are issued solely for the purpose of refunding student loan bonds outstanding on .
“(3)

Certain tax-exempt mortgage subsidy bonds .—

osection 103A of this titleFor purposes of applying section 103() of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the term ‘consumer loan bond’ shall not include any mortgage subsidy bond (within the meaning of section 103A(b) of such Code) to which the amendments made by section 1102 of the Mortgage Subsidy Bond Tax Act of 1980 [enacting ] do not apply.
“(4)

Refunding exception .—

The amendments made by this section [amending this section] shall not apply to any obligation or series of obligations the proceeds of which are used exclusively to refund obligations issued before , except that—
“(A)
the amount of the refunding obligations may not exceed 101 percent of the aggregate face amount of the refunded obligations, and
“(B)
the maturity date of any refunding obligation may not be later than the date which is 17 years after the date on which the refunded obligation was issued (or, in the case of a series of refundings, the date on which the original obligation was issued).
“(5)

Exception for certain established programs .—

The amendments made by this section [amending this section] shall not apply to any obligation substantially all of the proceeds of which are used to carry out a program established under State law which has been in effect in substantially the same form during the 30-year period ending on the date of enactment of this Act [], but only if such proceeds are used to make loans or to fund similar obligations—
“(A)
in the same manner in which,
“(B)
in the same (or lesser) amount per participant, and
“(C)
for the same purposes for which,
such program was operated on . This subparagraph shall not apply to obligations issued on or after .
“(6)

Certain bonds for renewable energy property .—

Pub. L. 96–223The amendments made by this section [amending this section] shall not apply to any obligations described in section 243 of the Crude Oil Windfall Profit Tax Act of 1980 [, set out as a note below].
“(7)

Exception for certain downtown redevelopment project .—

The amendments made by this section [amending this section] shall not apply to any obligation which is issued as part of an issue 95 percent or more of the proceeds of which are to be used to provide a project to acquire and redevelop a downtown area if—
“(A)
on , a downtown redevelopment authority adopted a resolution to issue obligations for such project,
“(B)
before , the city expended, or entered into binding contracts to expend, more than $10,000,000 in connection with such project, and
“(C)
the State supreme court issued a ruling regarding the proposed financing structure for such project on .
The aggregate face amount of obligations to which this paragraph applies shall not exceed $85,000,000 and such obligations must be issued before .”
, , , as amended by , title XIII, § 1317(22), title XVIII, § 1869(c)(5), , , 2698, 2890; , , , provided that:

Pub. L. 98–369, div. A, title VI, § 63198 Stat. 934Pub. L. 99–514, § 2100 Stat. 2095Pub. L. 100–647, title I, § 1013(f)(8)102 Stat. 3549

“(a)

Private Activity Bond Cap.—

“(1)

In general .—

Except as otherwise provided in this subsection, the amendment made by section 621 [amending this section] shall apply to obligations issued after .
“(2)

Inducement resolution before .—

The amendment made by section 621 shall not apply to any issue of obligations if—
“(A)
there was an inducement resolution (or other comparable preliminary approval) for the issue before , and
“(B)
the issue is issued before .
“(3)

Certain projects preliminarily approved before , given approval .—

If—
“(A)
there was an inducement resolution (or other comparable preliminary approval) for a project before , by any issuing authority,
“(B)
a substantial user of such project notifies the issuing authority within 30 days after the date of the enactment of this Act [] that it intends to claim its rights under this paragraph, and
“(C)
construction of such project began before , or the substantial user was under a binding contract on such date to incur significant expenditures with respect to such project,
such issuing authority shall allocate its share of the limitation under section 103(n) of such Code for the calendar year during which the obligations were to be issued pursuant to such resolution (or other approval) first to such project. If the amount of obligations required by all projects which meet the requirements of the preceding sentence exceeds the issuing authority’s share of the limitation under section 103(n) of such Code, priority under the preceding sentence shall be provided first to those projects for which substantial expenditures were incurred before . If any issuing authority fails to meet the requirements of this paragraph, the limitation under section 103(n) of such Code for the issuing authority for the calendar year following such failure shall be reduced by the amount of obligations with respect to which such failure occurred.
“(3) [(4)]

Exception for certain bonds for a convention center and resource recovery project .—

In the case of any city, if—
“(A)
the city council of such city authorized a feasibility study for a convention center on , and
“(B)
on , a municipal authority acting for such city accepted a proposal for the construction of a facility that is capable of generating steam and electricity through the combustion of municipal waste,
the amendment made by section 621 shall not apply to any issue, issued during 1984, 1985, 1986, or 1987 and substantially all of the proceeds of which are to be used to finance the convention center (or access ramps and parking facilities therefor) described in subparagraph (A) or the facility described in subparagraph (B).
“(b)

Property Financed With Tax-Exempt Bonds Required To Be Depreciated on Straight-Line Basis.—

“(1)

In general .—

section 168 of this titleExcept as otherwise provided in this section, the amendments made by section 628(b) [amending ] shall apply to property placed in service after , to the extent such property is financed by the proceeds of an obligation (including a refunding obligation) issued after .
“(2)

Exceptions.—

“(A)

Construction or binding agreement .—

The amendments made by section 628(b) shall not apply with respect to facilities—
“(i)
the original use of which commences with the taxpayer and the construction, reconstruction, or rehabilitation of which began before , or
“(ii)
with respect to which a binding contract to incur significant expenditures was entered into before .
“(B)

Refunding.—

“(i)

In general .—

Except as provided in clause (ii), in the case of property placed in service after , which is financed by the proceeds of an obligation which is issued solely to refund another obligation which was issued before , the amendments made by section 628(b) shall apply only with respect to an amount equal to the basis in such property which has not been recovered before the date such refunded obligation is issued.
“(ii)

Significant expenditures .—

In the case of facilities the original use of which commences with the taxpayer and with respect to which significant expenditures are made before , the amendments made by section 628(b) shall not apply with respect to such facilities to the extent such facilities are financed by the proceeds of an obligation issued solely to refund another obligation which was issued before .
“(C)

Facilities .—

In the case of an inducement resolution or other comparable preliminary approval adopted by an issuing authority before , for purposes of applying subparagraphs (A)(i) and (B)(ii) with respect to obligations described in such resolution, the term ‘facilities’ means the facilities described in such resolution.
“(c)

Other Provisions Relating to Tax-Exempt Bonds.—

“(1)

In general .—

Except as otherwise provided in this subtitle, the amendments made by sections 622, 623, 627, and 628(c), (d), and (e) (and the provisions of sections 625(c), 628(f), and 629(b)) [amending this section and enacting provisions set out as notes under this section] shall apply to obligations issued after .
“(2)

Obligations invested in federally insured deposits .—

Notwithstanding any other provision of this section, clause (ii) of section 103(h)(2)(B) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by this subtitle) shall apply to obligations issued after ; except that such clause shall not apply to any obligation issued pursuant to a binding contract in effect on .
“(3)

Exceptions.—

“(A)

Construction or binding agreement .—

The amendments (and provisions) referred to in paragraph (1) shall not apply to obligations with respect to facilities—
“(i)
the original use of which commences with the taxpayer and the construction, reconstruction, or rehabilitation of which began before , and was completed on or after such date,
“(ii)
the original use of which commences with the taxpayer and with respect to which a binding contract to incur significant expenditures for construction, reconstruction, or rehabilitation was entered into before , and some of such expenditures are incurred on or after such date, or
“(iii)
acquired after , pursuant to a binding contract entered into on or before such date.
“(B)

Facilities .—

Subparagraph (C) of subsection (b)(2) shall apply for purposes of subparagraph (A) of this paragraph.
“(C)

Exception .—

Subparagraph (A) shall not apply with respect to the amendment made by section 628(e) and the provisions of sections 628(f) and 629(b) [amending this section and enacting provisions set out as notes under this section].
“(4)

Repeal of advance refunding of qualified public facilities .—

section 1301 of Pub. L. 99–514section 103A of this titlesection 103A of this titleThe amendment made by section 628(g) [amending this section] shall apply to refunding obligations issued after the date of the enactment of this Act []; except that if substantially all the proceeds of the refunded issue were used to provide airports or docks, such amendment shall only apply to refunding obligations issued after . In the case of refunding obligations not to exceed $100,000,000 issued after , by Dade County, Florida, for the purpose of advance refunding its Aviation Revenue Bonds (Series J), the first sentence of this paragraph shall be applied by substituting ‘the date which is 1 year after the date of the enactment of the Technical and Miscellaneous Revenue Act of 1988 []’ for ‘’ and the amendments made by section 1301 of the Tax Reform Act of 1986 [, enacting sections 141 to 150 and 7703 of this title, amending this section and sections 2, 22, 25, 32, 86, 105, 152, 153, 163, 194, 269A, 414, 879, 1398, 3402, 4701, 4940, 4942, 4988, 6362, 6652, and 7871 of this title, repealing , enacting provisions set out as notes under sections 141 and 148 of this title, and amending provisions set out as a note under ] shall not apply. In the case of refunding obligations not exceeding $100,000,000 issued by the Alabama State Docks Department, the first sentence of this paragraph shall be applied by substituting ‘’ for ‘’ and the Internal Revenue Code of 1986 shall be applied without regard to [former] section 149(d)(2)..[sic]
“(5)

Special rule for health club facilities .—

In the case of any health club facility, with respect to the amendment made by section 627(c) [amending this section]—
“(A)
paragraph (1) shall be applied by substituting ‘’ for ‘’, and
“(B)
paragraph (3) shall be applied by substituting ‘’ for ‘’ each place it appears.
“(d)

Provisions of This Subtitle Not To Apply to Certain Property .—

Pub. L. 98–369The amendments made by this subtitle [sections 621–632 of , amending this section and sections 103A and 168 of this title and enacting provisions set out as notes under this section] shall not apply to any property (and shall not apply to obligations issued to finance such property) if such property is described in any of the following paragraphs:
“(1)
section 168 of this title Any property described in paragraph (5), (6), or (7) of section 31(g) of this Act [set out as an Effective Date of 1984 Amendment note under ].
“(2)
section 168 of this title Any property described in paragraph (4), (8), or (17) of section 31(g) of this Act [set out as an Effective Date of 1984 Amendment note under ] but only if the obligation is issued before , and only if before , the issuer had evidenced an intent to issue obligations exempt from taxation under the Internal Revenue Code of 1986 in connection with such property.
“(3)
section 168 of this title Any property described in paragraph (3) of section 216(b) of the Tax Equity and Fiscal Responsibility Act of 1982 [set out as an Effective Date of 1982 Amendment note under ].
“(4)
Any solid waste disposal facility described in section 103(b)(4)(E) of the Internal Revenue Code of 1986 if—
“(A)
a State public authority created pursuant to State legislation which took effect on , took formal action before , to commit development funds for such facility.
“(B)
such authority issues obligations for any such facility before , and
“(C)
expenditures have been made for the development of any such facility before .
“(5)
Any solid waste disposal facility described in section 103(b)(4)(E) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] if—
“(A)
a city government, by resolutions adopted on , and , took formal action to authorize the submission of a proposal for a feasibility study for such facility and to authorize the presentation to the Department of the Army (U.S. Army Missile Command) of a proposed agreement to jointly pursue construction and operation of such facility,
“(B)
such city government (or a public authority on its behalf) issues obligations for such facility before , and
“(C)
expenditures have been made for the development of such facility before . Notwithstanding the foregoing provisions of this subsection, the amendments made by section 624 [amending sections 103 and 103A of this title and enacting provisions set out as a note under this section] (relating to arbitrage) shall apply to obligations issued to finance property described in paragraph (5).
“(e)

Determination of Significant Expenditure.—

“(1)

In general .—

For purposes of this section, the term ‘significant expenditures’ means expenditures which equal or exceed the lesser of—
“(A)
$15,000,000, or
“(B)
20 percent of the estimated cost of the facilities.
“(2)

Certain grants treated as expenditures .—

For purposes of paragraph (1), the amount of any UDAG grant preliminarily approved on , or , shall be treated as an expenditure with respect to the facility for which such grant was so approved.
“(f)

Exceptions for Certain Other Amendments .—

If—
“(1)
there was an inducement resolution (or other comparable preliminary approval) for an issue before , by any issuing authority, and
“(2)
such issue is issued before , the following amendments shall not apply:
“(A)
the amendments made by section 623 [amending this section],
“(B)
the amendments made by subsections (a) and (b) of section 627 [amending this section] (except to the extent such amendments relate to farm land),
“(C)
in the case of a race track, the amendment made by section 627(c) [amending this section], and
“(D)
the amendments made by section 628(c) [amending this section].”
, , , as amended by , title XIII, §§ 1316(j), 1317(43), title XVIII, § 1872(a)–(c)(1), , , 2670, 2708, 2891, 2892; , (g)(40), , , 3557, provided that:

Section 1872(a)(2)(B) of Pub. L. 99–514section 631(c)(3) of Pub. L. 98–369section 1872(a)(2)(B) of Pub. L. 99–514[ provided that the amendment of , set out above, made by is effective with respect to obligations issued after .]

Effective Date of 1983 Amendment

Pub. L. 97–473section 204(2) of Pub. L. 97–473section 7871 of this titleFor effective date of amendment by , see , set out as an Effective Date note under .

Effective Date of 1982 Amendment

Pub. L. 97–248, title II, § 214(f)96 Stat. 468

“(1)

Composite issues; small issue exemption .—

The amendments made by subsections (a) and (b) [amending this section] shall apply to obligations issued after the date of the enactment of this Act [].
“(2)

Termination .—

The amendment made by subsection (c) [amending this section] shall take effect on the date of the enactment of this Act [].
“(3)

Research expenditures .—

The amendment made by subsection (d) [amending this section] shall apply with respect to expenditures made after the date of the enactment of this Act [].
“(4)

Certain facilities .—

The amendment made by subsection (e) [amending this section] shall apply to obligations issued after .”
, , , provided that:

Pub. L. 97–248, title II, § 215(c)96 Stat. 470

“(1)

Public approval .—

The amendment made by subsection (a) [amending this section] shall apply to obligations issued after , other than obligations issued solely to refund any obligation which—
“(A)
was issued before , and
“(B)
has a maturity which does not exceed 3 years.
“(2)

Information reporting .—

The amendments made by subsection (b) [amending this section] shall apply to obligations issued after (including any obligation issued to refund an obligation issued before such date).”
, , , provided that:

Pub. L. 97–248, title II, § 217(e)96 Stat. 474Pub. L. 98–369, div. A, title VII, § 712(h)98 Stat. 947Pub. L. 99–514, § 2100 Stat. 2095

“The amendments made by this section [amending this section] shall apply to obligations issued after the date of the enactment of this Act []. For purposes of applying section 168(f)(8)(D)(v) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], the amendments made by subsection (c) [amending this section] shall apply to agreements entered into after the date of the enactment of this Act.”
, , , as amended by , , ; , , , provided that:

Pub. L. 97–248, title II, § 219(b)96 Stat. 475

“The amendment made by subsection (a) [amending this section] shall apply to obligations issued after .”
, , , provided that:

Pub. L. 97–248, title II, § 221(d)96 Stat. 478

“(1)

In general .—

section 1104 of Pub. L. 96–499section 103A of this titleExcept as provided in paragraph (2), the amendments made by this section [amending this section and , formerly set out as a note under ] shall apply to obligations issued after the date of the enactment of this Act [].
“(2)

Exception .—

section 1103 of Pub. L. 96–499section 1104 of Pub. L. 96–499section 103A of this titleThe amendments made by this section shall not apply with respect to any obligation to which the amendments made by section 1103 of the Mortgage Subsidy Bond Tax Act of 1980 [, amending this section] do not apply by reason of section 1104 of such Act [, formerly set out as a note under ].”
, , , provided that:

Pub. L. 97–248, title III, § 310(d)96 Stat. 599Pub. L. 97–448, title III, § 306(b)(2)96 Stat. 2405Pub. L. 98–216, § 6(b)98 Stat. 8Pub. L. 99–514, § 2100 Stat. 2095

“(1)

In general .—

section 4701 of this titleExcept as otherwise provided in this subsection, the amendments made by this section [enacting and section 757c–5 of former Title 31, Money and Finance, and amending this section and sections 103A, 163, 165, 312, and 1232 of this title] shall apply to obligations issued after .
“(2)

Pub. L. 98–216, § 6(b)98 Stat. 8 [Repealed. , , .]

“(3)

Exception for certain warrants, etc .—

section 4701 of this title15 U.S.C. 77aThe amendments made by subsection (b) [enacting and amending this section and sections 163, 165, 312, and 1232 of this title] shall not apply to any obligations issued after , on the exercise of a warrant or the conversion of a convertible obligation if such warrant or obligation was offered or sold outside the United States without registration under the Securities Act of 1933 [ et seq.] and was issued before . A rule similar to the rule of the preceding sentence shall also apply in the case of any regulations issued under section 163(f)(2)(C) [now 163(f)(2)(B)] of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by this section) except that the date on which such regulations take effect shall be substituted for ‘’.
“(4)

Pub. L. 98–216, § 6(b)98 Stat. 8 [Repealed. , , .]

”
, , , as amended by , ; , , ; , , , provided that:

Effective Date of 1981 Amendment

Pub. L. 97–34, title VIII, § 811(c)95 Stat. 350

“The amendments made by this section [amending this section] shall apply to obligations issued after the date of the enactment of this Act [].”
, , , provided that:

Pub. L. 97–34, title VIII, § 812(b)(1)95 Stat. 350

“The amendment made by subsection (a) [amending this section] shall apply to obligations issued after .”
, , , provided that:

Effective Date of 1980 Amendment

Pub. L. 96–499section 1104 of Pub. L. 96–499section 103A of this titleFor effective date of amendment by , see , set out as an Effective Date note under .

Pub. L. 96–223, title II, § 241(d)94 Stat. 283

“The amendments made by subsection (a) [amending this section] and the provisions of subsections (b) and (c) [set out as notes under this section] shall apply with respect to obligations issued after .”
, , , provided that:

Pub. L. 96–223, title II, § 242(c)94 Stat. 285

“The amendments made by subsection (a) [amending this section] and the provisions of subsection (b) [set out as a note under this section] shall apply with respect to obligations issued after .”
, , , provided that:

Pub. L. 96–223, title II, § 244(b)94 Stat. 286

“The amendments made by subsection (a) [amending this section] shall apply to obligations issued on or after .”
, , , provided that:

Effective Date of 1978 Amendment

Pub. L. 95–339, title II, § 201(c)92 Stat. 467

“The amendments made by subsection (a) [amending this section] shall apply to taxable years ending after the date of the enactment of this Act [].”
, , , provided that:

Pub. L. 95–600, title III, § 331(c)92 Stat. 2840

“(1)
The amendments made by subsection (a) [amending this section] shall apply to—
“(A)
obligations issued after , in taxable years ending after such date, and
“(B)
capital expenditures made after , with respect to obligations issued before .
“(2)
The amendment made by subsection (b) [amending this section] shall apply to—
“(A)
obligations issued after , in taxable years ending after such date, and
“(B)
capital expenditures made after , with respect to obligations issued after such date.”
, , , provided that:

Pub. L. 95–600, title III, § 332(b)92 Stat. 2840

“The amendment made by subsection (a) [amending this section] shall apply to taxable years ending after , but only with respect to obligations issued after such date.”
, , , provided that:

Pub. L. 95–600, title III, § 333(b)92 Stat. 2840

“The amendment made by subsection (a) [amending this section] shall apply to obligations issued after the date of the enactment of this Act [] in taxable years ending after such date.”
, , , provided that:

Pub. L. 95–600, title III, § 334(c)92 Stat. 2841

“The amendments made by this section [amending this section] shall apply to obligations issued after the date of the enactment of this Act [].”
, , , provided that:

Pub. L. 95–600, title VII, § 703(q)(2)92 Stat. 2944

“The amendments made by paragraph (1) [amending this section] shall apply with respect to payments made by the Commissioner of Education after .”
, , , provided that:

section 703(j)(1) of Pub. L. 95–600section 703(r) of Pub. L. 95–600section 46 of this titleAmendment by effective on , see , set out as a note under .

Effective Date of 1976 Amendment

Pub. L. 94–455section 1901(d) of Pub. L. 94–455section 2 of this titleAmendment by section 1901(a)(17), (b)(8)(B) of applicable with respect to taxable years ending after , see , set out as a note under .

section 1906(b)(13)(A) of Pub. L. 94–455section 1906(d)(1) of Pub. L. 94–455section 6013 of this titleAmendment by effective , see , set out as a note under .

Pub. L. 94–455, title XXI, § 2105(d)90 Stat. 1902

“The amendments made by this section [amending this section] apply to obligations issued on or after the date of the enactment of this Act [].”
, , , provided that:

section 2137(d) of Pub. L. 94–455section 2137(e) of Pub. L. 94–455section 852 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .

Effective Date of 1975 Amendment

Pub. L. 94–182, title III, § 301(b)89 Stat. 1056

“The amendment made by subsection (a) [amending this section] shall apply to obligations issued after the date of the enactment of this Act [].”
, , , provided that:

Pub. L. 94–164, § 7(b)89 Stat. 976

“The amendments made by this section [amending this section] shall apply to obligations issued after the date of enactment of this Act [].”
, , , provided that:

Effective Date of 1971 Amendment

Pub. L. 92–178, title III, § 315(c)85 Stat. 529

“The amendments made by subsection (a) [amending this section] shall apply with respect to obligations issued after . The amendment made by subsection (b) [amending this section] shall apply with respect to expenditures incurred after the date of the enactment of this Act [].”
, , , provided that:

Effective Date of 1969 Amendment

Pub. L. 91–172, title VI, § 601(b)83 Stat. 657

“The amendments made by subsection (a) [amending this section] shall apply with respect to obligations issued after .”
, , , provided that:

Effective Date of 1968 Amendment

Pub. L. 90–634, title IV, § 401(b)82 Stat. 1351

“The amendment made by subsection (a) [amending this section] shall apply with respect to obligations issued after the date of the enactment of this Act [].”
, , , provided that:

Pub. L. 90–364, title I, § 107(b)(1)82 Stat. 268

“Except as provided by paragraph (2) [set out as a note below], the amendment made by subsection (a) [amending this section] shall apply to taxable years ending after , but only with respect to obligations issued after such date.”
, , , provided that:

Transfer of Functions

section 3441(a)(1) of Title 20Functions of Commissioner of Education transferred to Secretary of Education by , Education.

Pub. L. 97–424Pub. L. 97–473Coordination of Certain Amendments Made by and

Pub. L. 98–369, div. A, title VII, § 722(b)98 Stat. 973

Pub. L. 97–424section 202(b)(2) of Public Law 97–473Public Law 97–473“For purposes of applying the amendments made by section 547 of the Highway Revenue Act of 1982 [, amending this section] and the amendment made by [amending this section], shall be deemed to have been enacted immediately before the Highway Revenue Act of 1982.”
, , , provided that:

Validation of Sinking Fund Regulations

Pub. L. 100–647, title I, § 1013(a)(35)102 Stat. 3544

“(A)
Treasury Regulation section 1.103–13(g) (1979) is hereby enacted into positive law.
“(B)
(i)
Except as provided in clause (ii), subparagraph (A) shall apply to obligations sold after , and to which such regulation was provided to apply.
“(ii)
Treasury Regulation section 1.103–13(g) (1979) as enacted into positive law by subparagraph (A) shall cease to apply to the extent hereafter modified by the Secretary of the Treasury or his delegate by regulations.”
, , , provided that:

oBonds Issued To Refund Subsection ()(3) Obligations

Pub. L. 100–647, title I, § 1013(c)(15)102 Stat. 3548

o“A bond issued to refund an obligation described in section 103()(3) of the Internal Revenue Code of 1954 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1986 []) shall not be treated as described in section 144(b) of the 1986 Code unless it is described in section 144(b)(1)(A) of the 1986 Code.”
, , , provided that:

Plan Amendments Not Required Until January 1, 1989

Pub. L. 99–514section 1140 of Pub. L. 99–514section 401 of this titleFor provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after , see , as amended, set out as a note under .

Treatment of Certain Guarantees by Farmers Home Administration

Pub. L. 99–514, title XVIII, § 1865(b)100 Stat. 2886

“An obligation shall not be treated as federally guaranteed for purposes of section 103(h) of the Internal Revenue Code of 1954 [now 1986] by reason of a guarantee by the Farmers Home Administration if—
“(1)
such guarantee is pursuant to a commitment made by the Farmers Home Administration before , and
“(2)
such obligation is issued to finance a convention center project in Carbondale, Illinois.”
, , , provided that:

Treatment of Certain Obligations Used To Finance Solid Waste Disposal Facility

Pub. L. 99–514, title XVIII, § 1865(c)100 Stat. 2886

“(1)

In general .—

Any obligation which is part of an issue a substantial portion of the proceeds of which is to be used to finance a solid waste disposal facility described in paragraph (2) shall not, for purposes of section 103(h) of the Internal Revenue Code of 1954 [now 1986], be treated as an obligation which is federally guaranteed by reason of the sale of fuel, steam, electricity, or other forms of usable energy to the Federal Government or any agency or instrumentality thereof.
“(2)

Solid waste disposal facility .—

A solid waste disposal facility is described in this paragraph if such facility is described in section 103(b)(4)(E) of such Code and—
“(A)
if—
“(i)
a public State authority created pursuant to State legislation which took effect on , took formal action before , to commit development funds for such facility,
“(ii)
such authority issues obligations for such facility before , and
“(iii)
expenditures have been made for the development of such facility before ,
“(B)
if—
“(i)
such facility is operated by the South Eastern Public Service Authority of Virginia, and
“(ii)
section 631(c)(3)(A)(i) of Pub. L. 98–369 on , the Internal Revenue Service issued a ruling concluding that a portion of the obligations with respect to such facility would not be treated as federally guaranteed under section 103(h) of such Code by reason of the transitional rule contained in section 631(c)(3)(A)(i) of the Tax Reform Act of 1984 [, set out as a note above],
“(C)
if—
“(i)
a political subdivision of a State took formal action on , to commit development funds for such facility,
“(ii)
such facility has a contract to sell steam to a naval base,
“(iii)
such political subdivision issues obligations for such facility before , and
“(iv)
expenditures have been made for the development of such facility before , or
“(D)
if—
“(i)
such facility is a thermal transfer facility,
“(ii)
is to be built and operated by the Elk Regional Resource Authority, and
“(iii)
is to be on land leased from the United States Air Force at Arnold Engineering Development Center near Tullahoma, Tennessee.
“(3)

Limitations.—

“(A)
In the case of a solid waste disposal facility described in paragraph (2)(A), the aggregate face amount of obligations to which paragraph (1) applies shall not exceed $65,000,000.
“(B)
In the case of a solid waste disposal facility described in paragraph (2)(B), the aggregate face amount of obligations to which paragraph (1) applies shall not exceed $20,000,000. Such amount shall be in addition to the amount permitted under the Internal Revenue Service ruling referred to in paragraph (2)(B)(ii).
“(C)
In the case of a solid waste disposal facility described in paragraph (2)(C), the aggregate face amount of obligations to which paragraph (1) applies shall not exceed $75,000,000.
“(D)
In the case of a solid waste disposal facility described in paragraph (2)(D), the aggregate face amount of obligations to which paragraph (1) applies shall not exceed $25,000,000.”
, , , provided that:

Transitional Rule for Limit on Small Issue Exception

Pub. L. 99–514, title XVIII, § 1866100 Stat. 2887Pub. L. 100–647, title I, § 1018(m)(1)102 Stat. 3584

section 623 of Pub. L. 98–369“The amendment made by section 623 of the Tax Reform Act of 1984 [, amending this section] shall not apply to any obligation (or series of obligations) issued to refund another tax-exempt IDB to which the amendment made by such section 623 did not apply if—
“(1)
the average maturity of the issue of which the refunding obligation is a part does not exceed the average maturity of the obligations to be refunded by such issue,
“(2)
the amount of the refunding obligation does not exceed the amount of the refunded obligation, and
“(3)
the proceeds of the refunding obligation are used to redeem the refunded obligation not later than 90 days after the date of the issuance of the refunding obligation.
For purposes of the preceding sentence, the term ‘tax-exempt IDB’ means any industrial development bond (as defined in section 103(b) of the Internal Revenue Code of 1954 [now 1986]) the interest on which is exempt from tax under section 103(a) of such Code. For purposes of paragraph (1), average maturity shall be determined in accordance with subsection (b)(14)(B)(i) of such Code.”
, , , as amended by –(4), , , provided that:

Pub. L. 100–647, title I, § 1018(m)(5)102 Stat. 3584

Pub. L. 99–514Pub. L. 99–514“A refunding obligation issued before , shall be treated as meeting the requirement of paragraph (1) of section 1866 of the Reform Act [, set out above] if such obligation met the requirement of such paragraph as enacted by the Reform Act [].”
[, , , provided that: ]

Exception From 1984 Amendment for Downtown Muskogee Revitalization Project

Pub. L. 99–514, title XVIII, § 1867(b)100 Stat. 2888

“The amendment made by section 624 of the Tax Reform Act of 1984 [amending sections 103 and 103A of this title and enacting provisions set out as a note under this section] shall not apply to obligations issued with respect to the Downtown Muskogee Revitalization Project for which a UDAG grant was preliminarily approved on , if—
“(1)
such obligation is issued before , or
“(2)
such obligation is issued after such date to provide additional financing for such project except that the aggregate amount of obligations to which this subsection applies shall not exceed $10,000,000.”
, , , provided that:

Transitional Rules

Pub. L. 99–514, title XVIII, § 1869(c)(1)100 Stat. 2889Pub. L. 100–647, title I, § 1018(n)102 Stat. 3584

“(1)

Treatment of certain obligations issued by the city of baltimore .—

oPub. L. 99–514Obligations issued by the city of Baltimore, Maryland, after , shall not be treated as private loan bonds for purposes of section 103() of the Internal Revenue Code of 1954 [now 1986] (or as private activity bonds for purposes of section 103 and part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by title XIII of this Act [sections 1301 to 1318 of ]) by reason of the use of a portion of the proceeds of such obligations to finance or refinance temporary advances made by the city of Baltimore in connection with loans to persons who are not exempt persons (within the meaning of section 103(b)(3) of such Code) if—
“(A)
such obligations are not industrial development bonds (within the meaning of section 103(b)(2) of the Internal Revenue Code of 1954 [now 1986]),
“(B)
the portion of the proceeds of such obligations so used is attributable to debt approved by voter referendum on or before ,
“(C)
the loans to such nonexempt persons were approved by the Board of Estimates of the city of Baltimore on or before , and
“(D)
the aggregate amount of such temporary advances financed or refinanced by such obligations does not exceed $27,000,000.
“(2)

White pine power project .—

section 626(a) of Pub. L. 98–369The amendment made by section 626(a) of the Tax Reform Act of 1984 [, amending this section] shall not apply to any obligation issued during 1984 to provide financing for the White Pine Power Project in Nevada.
“(3)

Tax increment bonds .—

The amendment made by section 626(a) of the Tax Reform Act of 1984 shall not apply to any tax increment financing obligation issued before , if—
“(A)
substantially all of the proceeds of the issue are to be used to finance—
“(i)
sewer, street, lighting, or other governmental improvements to real property,
“(ii)
the acquisition of any interest in real property (by a governmental unit having the power to exercise eminent domain), the preparation of such property for new use, or the transfer of such interest to a private developer, or
“(iii)
payments of reasonable relocation costs of prior users of such real property,
“(B)
all of the activities described in subparagraph (A) are pursuant to a redevelopment plan adopted by the issuing authority before the issuance of such issue,
“(C)
repayment of such issue is secured exclusively by pledges of that portion of any increase in real property tax revenues (or their equivalent) attributable to the redevelopment resulting from the issue (or similar issues), and
“(D)
none of the property described in subparagraph (A) is subject to a real property or other tax based on a rate or valuation method which differs from the rate and valuation method applicable to any other similar property located within the jurisdiction of the issuing authority.
“(4)

Eastern maine electric cooperative .—

The amendment made by section 626(a) of the Tax Reform Act of 1984 shall not apply to obligations issued by Massachusetts Municipal Wholesale Electric Company Project No. 6 if—
“(A)
such obligation is issued before ,
“(B)
such obligation is issued after such date to refund a prior obligation for such project, except that the aggregate amount of obligations to which this subparagraph applies shall not exceed $100,000,000, or
“(C)
such obligation is issued after such date to provide additional financing for such project except that the aggregate amount of obligations to which this subparagraph applies shall not exceed $45,000,000.
Subparagraph (B) shall not apply to any obligation issued for the advance refunding of any obligation.”
–(4), , , as amended by , , , provided that:

Treatment of Obligations To Finance St. Johns River Power Park

Pub. L. 99–514, title XVIII, § 1869(c)(6)100 Stat. 2890

“(A)

In general .—

section 626(a) of Pub. L. 98–369The amendment made by section 626(a) of the Tax Reform Act of 1984 [, amending this section] shall not apply to any obligation issued to finance the project described in subparagraph (B) if—
“(i)
such obligation is issued before ,
“(ii)
such obligation is issued after such date to refund a prior tax exemption obligation for such project, the amount of such obligation does not exceed the outstanding amount of the refunded obligation, and such prior tax exempt obligation is retired not later than the date 30 days after the issuance of the refunding obligation, or
“(iii)
such obligation is issued after such date to provide additional financing for such project except that the aggregate amount of obligations to which this clause applies shall not exceed $150,000,000.
Clause (ii) shall not apply to any obligation issued for the advance refunding of any obligation.
“(B)

Description of project .—

The project described in this subparagraph in the St. Johns River Power Park system in Florida which was authorized by legislation enacted by the Florida Legislature in February of 1982.”
, , , provided that:

Certain Public Utilities Treated as Exempted Persons Under Section 103(b); Special Rules for Certain Railroads

Pub. L. 98–369, div. A, title VI, § 62998 Stat. 932Pub. L. 99–514, § 2100 Stat. 2095

“(a)

Certain Public Utilities .—

For purposes of applying section 103(b)(3) of the Internal Revenue Code [of 1986] with respect to—
“(1)
any obligations issued after the date of enactment of this Act [], and
“(2)
any obligations issued after , which were treated as obligations described in section 103(a) of such Code on the day on which such obligations were issued,
Public Law 90–364the term ‘exempt person’ shall include a regulated public utility having any customer service area within a State served by a public power authority which was required as a condition of a Federal Power Commission license specified by an Act of Congress enacted prior to the enactment of section 107 of the Revenue and Expenditure Control Act of 1968 () [] to contract to sell power to one such utility and which is authorized by State law to sell power to other such utilities, but only with respect to the purchase by any such utility and resale to its customers of any output of any electrical generation facility or any portion thereof or any use of any electrical transmission facility or any portion thereof financed by such power authority and owned by it or by such State, and provided that by agreement between such power authority and any such utility there shall be no markup in the resale price charged by such utility of that component of the resale price which represents the price paid by such utility for such output or use. The preceding sentence shall be applied by inserting ‘and a rural electric cooperative utility’ after ‘regulated public utility’ but only if not more than 1 percent of the load of the public power authority is sold to such rural electric cooperative utility.
“(b)

Certain Railroads .—

Section 103(b)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall not apply to any obligation which is described in section 103(b)(6)(A) of such Code if—
“(1)
substantially all of the proceeds of such obligation are used to acquire railroad track and right-of-way from a railroad involved in a title 11 or similar proceeding (within the meaning of section 368(a)(3)(A) of such Code), and
“(2)
the Federal Railroad Administration provides joint financing for such acquisitions.
“(c)

Special Rules for Subsection (a).—

“(1)

Obligations subject to cap .—

Any obligation described in subsection (a) shall be treated as a private activity bond for purposes of section 103(n) of the Internal Revenue Code of 1986.
“(2)

Limitation on amount of obligations to which subsectionapplies (a)(1) —

The aggregate amount of obligations to which subsection (a)(1) applies shall not exceed $911,000,000.
“(3)

Limitation on purposes .—

Subsection (a)(1) shall only apply to obligations issued as part of an issue substantially all the proceeds of which are used to provide 1 or more of the following:
“(A)
Cable facilities.
“(B)
Small hydroelectric facilities.
“(C)
The acquisition of an interest in an electrical generating facility.
“(D)
Improvements to existing generating facilities.
“(E)
Transmission lines.
“(F)
Electric generating facilities.”
, , , as amended by , title XIII, § 1316(g)(8)(B), , , 2670, provided that:

Treatment of Certain Residential Real Property as Residential Rental Property

Pub. L. 98–369, § 631(d)(3)section 1809(a)(4)(C) of Pub. L. 99–514section 168 of this titleTreatment of , residential real property as residential rental property, see , set out as a note under .

Public Approval Requirement in the Case of Public Airport

Pub. L. 98–369, div. A, title VI, § 628(f)98 Stat. 932Pub. L. 99–514, § 2100 Stat. 2095

“If—
“(1)
the proceeds of any issue are to be used to finance a facility or facilities located on a public airport, and
“(2)
the governmental unit issuing such obligations is the owner or operator of such airport,
such governmental unit shall be deemed to be the only governmental unit having jurisdiction over such airport for purposes of subsection (k) of section 103 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to public approval for industrial development bonds).”
, , , as amended by , , , provided that:

Small Issue Limit in Case of Certain Urban Development Action Grants

Pub. L. 98–369, div. A, title VI, § 628(h)98 Stat. 932Pub. L. 99–514, § 2100 Stat. 2095

“In the case of any obligation issued on , section 103(b)(6)(I) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall be applied by substituting ‘$15,000,000’ for ‘$10,000,000’ if—
“(1)
such obligation is part of an issue,
“(2)
42 U.S.C. 5318 substantially all of the proceeds of such issue are used to provide facilities with respect to which an urban development action grant under section 119 of the Housing and Community Development Act of 1974 [] was preliminarily approved by the Secretary of Housing and Urban Development on , and
“(3)
the Secretary of Housing and Urban Development determines, at the time such grant is approved, that the amount of such grant will equal or exceed 5 percent of the total capital expenditures incurred with respect to such facilities.”
, , , as amended by , , , provided that:

Student Loan Bonds

Pub. L. 98–369, div. A, title VI, § 62598 Stat. 924Pub. L. 99–514, § 2100 Stat. 2095

“(a)

Arbitrage Regulations.—

“(1)

In general .—

The Secretary shall prescribe regulations which specify the circumstances under which a qualified student loan bond shall be treated as an arbitrage bond for purposes of section 103 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]. Such regulations may provide that—
“(A)
paragraphs (4) and (5) of section 103(c) of such Code shall not apply, and
“(B)
rules similar to section 103(c)(6) shall apply,
to qualified student loan bonds.
“(2)

Definitions .—

For purposes of this subsection—
“(A)

Qualified student loan bond .—

oThe term ‘qualified student loan bond’ has the meaning given to such term by section 103()(3) of the Internal Revenue Code of 1986 (as amended by this Act).
“(B)

Arbitrage bond .—

The term ‘arbitrage bond’ has the meaning given to such term by section 103(c)(2).
“(3)

Effective date.—

“(A)

In general .—

Except as otherwise provided in this paragraph, any regulations prescribed by the Secretary under paragraph (1) shall apply to obligations issued after the qualified date.
“(B)

Qualified date.—

“(i)

In general .—

For purposes of this paragraph, the term ‘qualified date’ means the earlier of—
     “(I)
20 U.S.C. 1001 the date on which the Higher Education Act of 1965 [ et seq.] expires, or
     “(II)
the date, after the date of enactment of this Act [], on which the Higher Education Act of 1965 is reauthorized.
“(ii)

Publication of regulations .—

Notwithstanding clause (i), the qualified date shall not be a date which is prior to the date that is 6 months after the date on which the regulations prescribed under paragraph (1) are published in the Federal Register.
“(C)

Refunding obligations .—

Regulations prescribed by the Secretary under paragraph (1) shall not apply to any obligation (or series of refunding obligations) issued exclusively to refund any qualified student loan bond which was issued before the qualified date, except that the requirements of subparagraphs (A) and (B) of section 626(b)(4) of this Act [set out in Effective Date of 1984 Amendment note above] must be met with respect to such refunding.
“(D)

Fulfillment of commitments .—

Regulations prescribed by the Secretary under paragraph (1) shall not apply to any obligations which are needed to fulfill written commitments to acquire or finance student loans which are originated after , and before the qualified date, but only if—
“(i)
such commitments are binding on the qualified date, and
“(ii)
the amount of such commitments is consistent with practices of the issuer which were in effect on , with respect to establishing secondary markets for student loans.
“(b)

Arbitrage Limitation on Student Loan Bonds Which Are Not Qualified Student Loan Bonds .—

Under regulations prescribed by the Secretary of the Treasury or his delegate, any student loan bond (other than a qualified student loan bond) issued after , shall be treated as an obligation not described in subsection (a)(1) or (2) of section 103 of the Internal Revenue Code of 1986 unless the issue of which such obligation is a part meets requirements similar to those of sections 103(c)(6) and 103A(i) of such Code.
“(c)

Issuance of Student Loan Bonds Which Are Not Tax-Exempt .—

Any issuer who may issue obligations described in section 103(a) of the Internal Revenue Code of 1986 may elect to issue student loan bonds which are not described in such section 103(a) of such Code without prejudice to—
“(1)
the status of any other obligations issued, or to be issued, by such issuer as obligations described in section 103(a) of such Code, or
“(2)
the status of the issuer as an organization exempt from taxation under such Code.
“(d)

Federal Executive Branch Jurisdiction Over Tax-Exempt Status .—

For purposes of Federal law, any determination by the executive branch of the Federal Government of whether interest on any obligation is exempt from taxation under the Internal Revenue Code of 1986 shall be exclusively within the jurisdiction of the Department of the Treasury.
“(e)

Study on Tax-Exempt Student Loan Bonds.—

“(1)

In general .—

The Comptroller General of the United States and the Director of the Congressional Budget Office, shall conduct studies of—
“(A)
20 U.S.C. 1001 the appropriate role of tax-exempt bonds which are issued in connection with the guaranteed student loan program and the PLUS program established under the Higher Education Act of 1965 [ et seq.], and
“(B)
the appropriate arbitrage rules for such bonds.
“(2)

Report .—

The Comptroller General of the United States and the Director of the Congressional Budget Office, shall submit to the Committee on Finance and the Committee on Labor and Human Resources [now Committee on Health, Education, Labor, and Pensions] of the Senate and the Committee on Ways and Means and the Committee on Education and Labor [now Committee on Education and the Workforce] of the House of Representatives reports on the studies conducted under paragraph (1) by no later than 9 months after the date of enactment of this Act [].”
, , , as amended by , title XVIII, § 1868, , , 2888, provided that:

Obligations Issued To Provide Solid Waste-Energy Producing Facilities

Pub. L. 96–223, title II, § 241(b)94 Stat. 282Pub. L. 99–514, § 2100 Stat. 2095

“(1)

General rule .—

For purposes of section 103 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], any obligation issued by an authority for 2 or more political subdivisions of a State which is part of an issue substantially all of the proceeds of which are to be used to provide solid waste-energy producing facilities shall be treated as an obligation of a political subdivision of a State which meets the requirements of section 103(b)(4)(E) of such Code (relating to solid waste disposal, etc., facilities). Nothing in the preceding sentence shall be construed to override the limitations of section 103(c) of such Code (relating to arbitrage bonds).
“(2)

Solid waste-energy producing facilities .—

For purposes of paragraph (1), the term ‘solid waste-energy producing facilities’ means any solid waste disposal facility and any facility for the production of steam and electrical energy if—
“(A)
substantially all of the fuel for the facility producing steam and electrical energy is derived from solid waste from such solid waste disposal facility,
“(B)
both such solid waste disposal facility and the facility producing steam and electrical energy are owned and operated by the authority referred to in paragraph (1), and
“(C)
all of the electrical energy and steam produced by the facility for producing steam and electricity which is not used by such facility is sold, for purposes other than resale, to an agency or instrumentality of the United States.
“(3)

Solid waste disposal facility .—

For purposes of paragraph (2), the term ‘solid waste disposal facility’ means any solid waste disposal facility within the meaning of section 103(b)(4)(E) of the Internal Revenue Code of 1986 (determined without regard to section 103(g) of such Code).
“(4)

Obligations must be in registered form .—

This subsection shall not apply to any obligation which is not issued in registered form.”
, , , as amended by , , , provided that:

Alcohol-Producing Facilities

Pub. L. 96–223, title II, § 241(c)94 Stat. 282Pub. L. 99–514, § 2100 Stat. 2095

“(1)

In general .—

Subparagraph (C) of section 103(g)(3) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by subsection (a)) shall not apply to any facility for the production of alcohol from solid waste if—
“(A)
substantially all of the solid waste derived feedstock for such facility is produced at a facility which—
“(i)
went into full production in 1977,
“(ii)
is located within the limits of a city, and
“(iii)
is located in the same metropolitan area as the alcohol-producing facility, and
“(B)
before , there were negotiations between a governmental body and an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 with respect to the utilization of a special process for the production of alcohol at such alcohol-producing facility.
“(2)

Limitation .—

The aggregate amount of obligations which may be issued by reason of paragraph (1) with respect to any project shall not exceed $30,000,000.
“(3)

Termination .—

This subsection shall not apply to obligations issued after .”
, , , as amended by , , , provided that:

Hydroelectric Generating Facilities

Pub. L. 96–223, title II, § 242(b)94 Stat. 284Pub. L. 99–514, § 2100 Stat. 2095

“(1)

In general .—

For purposes of section 103(b)(4)(H) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (relating to qualified hydroelectric generating facilities), in the case of a hydroelectric generating facility described in paragraph (2)—
“(A)
l the facility shall be treated as a qualified hydroelectric generating facility (as defined in section 103(b)(8)(A) of such Code) without regard to clause (ii) of section 48()(13)(B) of such Code (relating to maximum generating capacity), and
“(B)
the fraction referred to in subparagraph (C) of section 103(b)(8) of such Code shall be deemed to be 1.
“(2)

Facilities to which paragraph (1) applies .—

A facility is described in this paragraph if—
“(A)
l it would be a qualified hydroelectric generating facility (as defined in section 103(b)(8)(A) of such Code) if clause (ii) of section 48()(13)(B) did not apply,
“(B)
it constitutes an expansion of generating capacity at an existing hydroelectric generating facility,
“(C)
such facility is located at 1 of 2 dams located in the same county where—
“(i)
the rated capacity of the hydroelectric generating facilities at each such dam on , was more than 750 megawatts,
“(ii)
the construction of the first such dam began in 1956, power at such first dam was first generated in 1959, and full power production at such first dam began in 1961, and
“(iii)
the construction of the second such dam began in 1959, power at such second dam was first generated in 1963, and full power production at such second dam began in 1964,
“(D)
acquisition or construction of the existing facility referred to in subparagraph (B) was financed with the proceeds of an obligation described in section 103(a)(1) of such Code,
“(E)
the existing facility is owned and operated by a State, political subdivision of a State, or agency or instrumentality of any of the foregoing,
“(F)
no more than 60 percent of the electric power and energy produced by such existing facility and of the qualified hydroelectric generating facility is to be sold to anyone other than an exempt person (within the meaning of section 103(b)(3) of such Code), and
“(G)
the agency of the State in which the facility is located which has jurisdiction over water rights had granted, before , a water right under which expanded power and energy generating capacity for the facility was contemplated.”
, , , as amended by , , , provided that:

State Obligations for Renewable Energy Property

Pub. L. 96–223, title II, § 24394 Stat. 285Pub. L. 99–514, § 2100 Stat. 2095

“(a)

Certain State Obligations for Renewable Energy Property.—

“(1)

In general .—

Paragraph (1) of subsection (b) of section 103 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] shall not apply to any obligation issued as part of an issue substantially all of the proceeds of which are to be used to provide renewable energy property, if—
“(A)
the obligations are general obligations of a State,
“(B)
the authority for the issuance of the obligations requires that taxes be levied in sufficient amount to provide for the payment of principal and interest on such obligations,
“(C)
the amount of such obligations, when added to the sum of the amounts of all such obligations previously issued by the State which are outstanding, does not exceed the smaller of—
“(i)
$500,000,000 or
“(ii)
one-half of 1 percent of the value of all property in the State,
“(D)
such obligations are issued pursuant to a program to provide financing for small scale energy projects which was established by a State the legislature of which, before , approved a constitutional amendment to provide for such a program, and
“(E)
such obligations meet the requirements of paragraph (1) of section 103(h) of the Internal Revenue Code of 1986.
“(2)

Renewable energy property .—

For purposes of this subsection, the term ‘renewable energy property’ means property used to produce energy (including heat, electricity, and substitute fuels) from renewable energy sources (including wind, solar, and geothermal energy, waste heat, biomass, and water).
“(b)

Effective Date .—

Subsection (a) shall apply with respect to obligations issued after the date of enactment of this Act [].”
, , , as amended by , , , provided that:

Disposition of Amounts Generated by Advance Refunding of Certain Governmental Obligations

Pub. L. 95–600, title III, § 33792 Stat. 2842Pub. L. 96–222, title I, § 103(a)(8)94 Stat. 212Pub. L. 99–514, § 2100 Stat. 2095

“(a)

General Rule .—

The payment to a charitable organization of a refund profit held in a trust fund or escrow arrangement, or held by an underwriter or other person under a qualified agreement in accordance with that agreement—
“(1)
shall not cause the refunding obligations out of which the refund profit arose to be treated as arbitrage bonds (within the meaning of section 103(c) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]) and
“(2)
may be paid without penalty imposed on the issuer of such obligations.
“(b)

Rule for Governments Which Have Already Paid Arbitrage Profits to the United States .—

In the case of a State or local government which, before —
“(1)
requested in writing a rule by the Internal Revenue Service with respect to the tax consequences of paying refund profit to charitable organizations,
“(2)
failed to receive a favorable ruling and did not pay the refund profit to a charitable organization, and
which accounted to the United States for refund profit by direct payment to the United States, or by the purchase of low-interest United States obligations, the Secretary of the Treasury shall pay, out of any amounts in the Treasury not otherwise appropriated, an amount equal to the refund profit for which the State or local government has accounted to the United States. Amounts paid to a State or local government under this subsection shall be distributed to such charitable organizations within 90 days after the date on which the payment is received by the State or local government in the same manner as if the refund profit had not been paid to the United States and met the requirements of subsection (a).
“(c)

Definitions .—

For purposes of this section—
“(1)

Refund profit .—

The term ‘Refund profit’ means interest, profit, or other amounts generated by, or arising out of, the advance refunding, before , of an obligation of a State or local government described in section 103 of such Code.
“(2)

Charitable organization .—

The term ‘charitable organization’ means an organization described in section 501(c)(3) of such Code and exempt from taxation under section 501(a) of such Code other than an organization described in section 509(a) of such Code.
“(3)

Qualified agreement .—

The term ‘qualified agreement’ means an agreement (whether or not enforceable) which provides for, or contemplates, the payment of refund profit to one or more charitable organizations.
“(4)

Low-interest united states obligations .—

The term ‘low-interest United States obligations’ means United States obligations which bear an interest rate lower than the highest rate of interest borne by public debt securities generally available for purchase at the time such obligations were purchased.”
, , , as amended by , , ; , , , provided that:

Transitional Provisions for Industrial Development Bonds Issued Before

Pub. L. 90–364, title I, § 107(b)(2)82 Stat. 268Pub. L. 99–514, § 2100 Stat. 2095

“Section 103(c)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], as amended by subsection (a) [subsec. (b)(1), formerly subsec. (c)(1) of this section], shall not apply with respect to any obligation issued before , if before —
“(A)
the issuance of the obligation (or the project in connection with which the proceeds of the obligations are to be used) was authorized or approved by the governing body of the governmental unit issuing the obligation or by the voters of such governmental unit;
“(B)
in connection with the issuance of such obligation or with the use of the proceeds to be derived from the sale of such obligation or the property to be acquired or improved with such proceeds, a governmental unit has made a significant financial commitment;
“(C)
any person (other than a governmental unit) who will use the proceeds to be derived from the sale of such obligation or the property to be acquired or improved with such proceeds has expended (or has entered into a binding contract to expend) for purposes which are related to the use of such proceeds or property, an amount equal to or in excess of 20 percent of such proceeds; or
“(D)
in the case of an obligation issued in conjunction with a project where financial assistance will be provided by a governmental agency concerned with economic development, such agency has approved the project or an application for financial assistance is pending.”
, , , as amended by , , , provided that: