Internal Revenue Code · 26 U.S.C.
§ 141. Private activity bond; qualified bond
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 141
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- October 22, 1986 by Pub. L. 99–514
- Last amended
- November 15, 2021 by Pub. L. 117–58
- Amendments
- 4 dated changes in the source credit
- Length
- 5 subsections · 2,054 words · about 9 min to read
- Defines
- 12 terms
- Cross-references
- cites 4; cited by 12 Code sections and 23 other regulations
- Regulations
- 15 issued under this section
Except as otherwise provided in this subsection, an issue meets the test of this paragraph if more than 10 percent of the proceeds of the issue are to be used for any private business use.
For purposes of this subsection, the term “private business use” means use (directly or indirectly) in a trade or business carried on by any person other than a governmental unit. For purposes of the preceding sentence, use as a member of the general public shall not be taken into account.
For purposes of the 1st sentence of subparagraph (A), any activity carried on by a person other than a natural person shall be treated as a trade or business.
For purposes of this subsection, the sale of carbon dioxide produced by a qualified carbon dioxide capture facility (as defined in section 142(o)) which is owned by a governmental unit shall not constitute private business use.
There shall not be taken into account under this subsection or subsection (c) the portion of the proceeds of an issue which (if issued as a separate issue) would be treated as a qualified 501(c)(3) bond if the issuer elects to treat such portion as a qualified 501(c)(3) bond.
Except as otherwise provided in this subsection, for purposes of paragraph (1), the term “nongovernmental output property” means any property (or interest therein) which before such acquisition was used (or held for use) by a person other than a governmental unit in connection with an output facility (within the meaning of subsection (b)(4)) (other than a facility for the furnishing of water). For purposes of the preceding sentence, use (or the holding for use) before October 14, 1987, shall not be taken into account.
The term “qualified service area” means, with respect to the governmental unit acquiring the property, any area throughout which such unit provided (at all times during the 10-year period ending on the date such property is acquired by such unit) output of the same type as the output to be provided by such property. For purposes of the preceding sentence, the period before October 14, 1987, shall not be taken into account.
Subclause (III) of subparagraph (B)(ii) shall not apply to an annexation of an area by a governmental unit if the output capacity of the property acquired in connection with the annexation, when added to the output capacity of all other property which is not treated as nongovernmental output property by reason of subparagraph (A)(ii) with respect to such annexed area, does not exceed 10 percent of the output capacity of the property providing output of the same type to the qualified service area into which it is annexed.
The term “nongovernmental output property” shall not include any property which is to be converted to a use not in connection with an output facility.
Subparagraph (A) shall not apply to any property which is part of the output function of a nuclear power facility.
With respect to nongovernmental output property acquired by a joint action agency the members of which are governmental units, this subsection shall be applied at the member level by treating each member as acquiring its proportionate share of such property.
The term “nongovernmental output property” shall not include any contract for the prepayment of electricity or natural gas which is not investment property under section 148(b)(2).
Such bond is issued as part of an issue which meets the applicable requirements of section 146, and 11 So in original. Probably should end with a period after “146”.
Such bond meets the applicable requirements of each subsection of section 147.
(Added Pub. L. 99–514, title XIII, § 1301(b), Oct. 22, 1986, 100 Stat. 2603; amended Pub. L. 100–203, title X, § 10631(a), Dec. 22, 1987, 101 Stat. 1330–453; Pub. L. 100–647, title I, § 1013(a)(38), Nov. 10, 1988, 102 Stat. 3544; Pub. L. 109–58, title XIII, § 1327(b), (c), Aug. 8, 2005, 119 Stat. 1019; Pub. L. 117–58, div. H, title IV, § 80402(d), Nov. 15, 2021, 135 Stat. 1334.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
- government use § 141(b)(7)
- nongovernmental output property § 141(d)(2)
- nongovernmental output property § 141(d)(3)(A)
- nongovernmental output property § 141(d)(4)(A)
- nongovernmental output property § 141(d)(7)
- nonqualified amount § 141(b)(8)
- private activity bond § 141(a)
- private activity bond § 141(d)(1)
- private business use § 141(b)(6)(A)
- qualified annexed area § 141(d)(3)(B)(ii)
- qualified bond § 141(e)
- qualified service area § 141(d)(3)(B)(i)
Regulations under this section
Treasury regulations (26 CFR) issued under § 141
- § 1.141-0 Table of contents.
- § 1.141-1 Definitions and rules of general application.
- § 1.141-2 Private activity bond tests.
- § 1.141-3 Definition of private business use.
- § 1.141-4 Private security or payment test.
- § 1.141-5 Private loan financing test.
- § 1.141-6 Allocation and accounting rules.
- § 1.141-7 Special rules for output facilities.
- § 1.141-8 $15 million limitation for output facilities.
- § 1.141-9 Unrelated or disproportionate use test.
- § 1.141-12 Remedial actions.
- § 1.141-13 Refunding issues.
- § 1.141-14 Anti-abuse rules.
- § 1.141-15 Effective/applicability dates.
- § 1.141-16 Effective dates for qualified private activity bond provisions.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 4 other sections
- § 146 Volume cap
- § 142 Exempt facility bond
- § 148(f)(6)(A) Arbitrage
- § 147 Other requirements applicable to certain private activity bonds
Cited by 12 Code sections
- § 45J(e)(3)(C) Credit for production from advanced nuclear power facilities
- § 57(a)(5)(C)(i) Items of tax preference
- § 103(b)(1) Interest on State and local bonds
- § 142(c)(2) Exempt facility bond
- § 143(a)(2)(A)(iii) Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond
- § 144(a)(10)(B)(ii)(II) Qualified small issue bond; qualified student loan bond; qualified redevelopment bond
- § 145(a)(2)(B) Qualified 501(c)(3) bond
- § 146(k)(3) Volume cap
- § 148(f)(4)(D)(vi) Arbitrage
- § 149(f)(6)(B)(i) Bonds must be registered to be tax exempt; other requirements
- § 265(b)(3)(B)(i)(II) Expenses and interest relating to tax-exempt income
- § 7871(c)(2) Indian tribal governments treated as States for certain purposes
Cited in 23 regulations not issued under it
- § 1.2-1 Tax in case of joint return of husband and wife or the return of a surviving spouse.
- § 1.3-1 Application of optional tax.
- § 1.4-3 Husband and wife filing separate returns.
- § 1.142-1 Exempt facility bonds.
- § 1.144-1 Qualified small issue bonds, qualified student loan bonds, and qualified redevelopment bonds.
- § 1.145-1 Qualified 501(c)(3) bonds.
- § 1.145-2 Application of private activity bond regulations.
- § 1.147(f)-1 Public approval of private activity bonds.
- § 1.148-6 General allocation and accounting rules.
- § 1.149(d)-1 Limitations on advance refundings.
- § 1.149(e)-1 Information reporting requirements for tax-exempt bonds.
- § 1.150-1 Definitions.
- § 1.172-5 Taxable income which is subtracted from net operating loss to determine carryback or carryover.
- § 1.213-1 Medical, dental, etc., expenses.
- § 1.443-1 Returns for periods of less than 12 months.
- § 1.542-4 Corporations filing consolidated returns.
- § 1.668(b)-2A Special rules applicable to section 668.
- § 1.1038-1 Reacquisitions of real property in satisfaction of indebtedness.
- § 1.1051-1 Basis of property acquired during affiliation.
- § 1.1397E-1 Qualified zone academy bonds.
- § 1.6012-1 Individuals required to make returns of income.
- § 1.6014-2 Tax not computed by taxpayer for taxable years beginning after December 31, 1969.
- § 301.9100-7T Time and manner of making certain elections under the Tax Reform Act of 1986.
Amendment history
From the source credit and the official notes, newest first.
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter B Computation of Taxable Income
- Part IV TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS
- Subpart A Private Activity Bonds
Nearby sections
Official notes
The Law Revision Counsel's notes for this section (amendments, effective dates and related laws) are long, so they have their own page.