[Code of Federal Regulations]
[Title 26, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.142-1]

[Page 648-649]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 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 1.142-0 through 1.142-3 apply for purposes of 
the rules for exempt facility bonds under section 142, except that, with 
respect to net

[[Page 649]]

proceeds that have been spent, Sec. 1.142-2 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 Secs. 1.142-0 through 
1.142-2, see Sec. 1.141-16.

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