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26 U.S.C. § 115 — Income of States, municipalities, etc
Federal law — U.S. Code and appendices · legal_authorities
Page 566
TITLE 26—INTERNAL REVENUE CODE
§ 115
The Secretary of the Treasury (or such Secretary’s del-
egate) may prescribe such regulations as may be nec-
essary to prevent the abuse of the purposes of this sub-
section.
‘‘[(f) Repealed. Pub. L. 109–222, title V, § 513(b), May
17, 2006, 120 Stat. 366.]’’
§ 115. Income of States, municipalities, etc.
Gross income does not include—
(1) income derived from any public utility or
the exercise of any essential governmental
function and accruing to a State or any polit-
ical subdivision thereof, or the District of Co-
lumbia; or
(2) income accruing to the government of
any possession of the United States, or any po-
litical subdivision thereof.
(Aug. 16, 1954, ch. 736, 68A Stat. 35; Pub. L. 94–455,
title XIX, § 1901(a)(19), Oct. 4, 1976, 90 Stat. 1766.)
Editorial Notes
AMENDMENTS
1976—Pub. L. 94–455 struck out ‘‘(a) General rule’’ be-
fore ‘‘Gross income does not include’’, struck out sub-
secs. (b) and (c) which related to contracts concerning
public utilities made before Sept. 8, 1916, and contracts
concerning bridge acquisition made before May 29, 1928,
respectively, and in par. (1) of former subsec. (a), struck
out ‘‘or territory’’ after ‘‘accruing to a State’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94–455 applicable with respect
to taxable years beginning after Dec. 31, 1976, see sec-
tion 1901(d) of Pub. L. 94–455, set out as a note under
section 2 of this title.
TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD
REAL ESTATE INVESTMENT TRUST
Pub. L. 109–59, title XI, § 11146, Aug. 10, 2005, 119 Stat.
1966, provided that:
‘‘(a) IN GENERAL.—If a State owns all of the out-
standing stock of a corporation—
‘‘(1) which is a real estate investment trust
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 115
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Page 566
TITLE 26—INTERNAL REVENUE CODE
§ 115
The Secretary of the Treasury (or such Secretary’s del-
egate) may prescribe such regulations as may be nec-
essary to prevent the abuse of the purposes of this sub-
section.
‘‘[(f) Repealed. Pub. L. 109–222, title V, § 513(b), May
17, 2006, 120 Stat. 366.]’’
§ 115. Income of States, municipalities, etc.
Gross income does not include—
(1) income derived from any public utility or
the exercise of any essential governmental
function and accruing to a State or any polit-
ical subdivision thereof, or the District of Co-
lumbia; or
(2) income accruing to the government of
any possession of the United States, or any po-
litical subdivision thereof.
(Aug. 16, 1954, ch. 736, 68A Stat. 35; Pub. L. 94–455,
title XIX, § 1901(a)(19), Oct. 4, 1976, 90 Stat. 1766.)
Editorial Notes
AMENDMENTS
1976—Pub. L. 94–455 struck out ‘‘(a) General rule’’ be-
fore ‘‘Gross income does not include’’, struck out sub-
secs. (b) and (c) which related to contracts concerning
public utilities made before Sept. 8, 1916, and contracts
concerning bridge acquisition made before May 29, 1928,
respectively, and in par. (1) of former subsec. (a), struck
out ‘‘or territory’’ after ‘‘accruing to a State’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94–455 applicable with respect
to taxable years beginning after Dec. 31, 1976, see sec-
tion 1901(d) of Pub. L. 94–455, set out as a note under
section 2 of this title.
TAX TREATMENT OF STATE OWNERSHIP OF RAILROAD
REAL ESTATE INVESTMENT TRUST
Pub. L. 109–59, title XI, § 11146, Aug. 10, 2005, 119 Stat.
1966, provided that:
‘‘(a) IN GENERAL.—If a State owns all of the out-
standing stock of a corporation—
‘‘(1) which is a real estate investment trust on the
date of the enactment of this Act [Aug. 10, 2005],
‘‘(2) which is a non-operating class III railroad, and
‘‘(3) substantially all of the activities of which con-
sist of the ownership, leasing, and operation by such
corporation of facilities, equipment, and other prop-
erty used by the corporation or other persons for rail-
road transportation and for economic development
purposes for the benefit of the State and its citizens,
then, to the extent such activities are of a type which
are an essential governmental function within the
meaning of section 115 of the Internal Revenue Code
of 1986, income derived from such activities by the
corporation shall be treated as accruing to the State
for purposes of section 115 of such Code.
‘‘(b) GAIN OR LOSS NOT RECOGNIZED ON CONVERSION.—
Notwithstanding section 337(d) of the Internal Revenue
Code of 1986—
‘‘(1) no gain or loss shall be recognized under sec-
tion 336 or 337 of such Code, and
‘‘(2) no change in basis of the property of such cor-
poration shall occur, because of any change of status
of a corporation to a tax-exempt entity by reason of
the application of subsection (a).
‘‘(c) TAX-EXEMPT FINANCING.—
‘‘(1) IN GENERAL.—Any obligation issued by a cor-
poration described in subsection (a) at least 95 per-
cent of the net proceeds (as defined in section 150(a)
of the Internal Revenue Code of 1986) of which are to
be used to provide for the acquisition, construction,
or improvement of railroad transportation infrastruc-
ture (including railroad terminal facilities)—
‘‘(A) shall be treated as a State or local bond
(within the meaning of section 103(c) of such Code),
and
‘‘(B) shall not be treated as a private activity
bond (within the meaning of section 103(b)(1) of
such Code) solely by reason of the ownership or use
of such railroad transportation infrastructure by
the corporation.
‘‘(2) NO
INFERENCE.—Except as provided in para-
graph (1), nothing in this subsection shall be con-
strued to affect the treatment of the private use of
proceeds or property financed with obligations issued
by the corporation for purposes of section 103 of the
Internal Revenue Code of 1986 and part IV of sub-
chapter B [probably means part IV of subchapter B of
chapter 1] of such Code.
‘‘(d) DEFINITIONS.—For purposes of this section:
‘‘(1) REAL
ESTATE
INVESTMENT
TRUST.—The term
‘real estate investment trust’ has the meaning given
such term by section 856(a) of the Internal Revenue
Code of 1986.
‘‘(2) NON-OPERATING CLASS III RAILROAD.—The term
‘non-operating class III railroad’ has the meaning
given such term by part A of subtitle IV of title 49,
United States Code (49 U.S.C. 10101 et seq.), and the
regulations thereunder.
‘‘(3) STATE.—The term ‘State’ includes—
‘‘(A) the District of Columbia and any possession
of the United States, and
‘‘(B) any authority, agency, or public corporation
of a State.
‘‘(e) APPLICABILITY.—
‘‘(1) IN GENERAL.—Except as provided in paragraph
(2), this section shall apply on and after the date on
which a State becomes the owner of all of the out-
standing stock of a corporation described in sub-
section (a) through action of such corporation’s board
of directors.
‘‘(2) EXCEPTION.—This section shall not apply to
any State which—
‘‘(A) becomes the owner of all of the voting stock
of a corporation described in subsection (a) after
December 31, 2003, or
‘‘(B) becomes the owner of all of the outstanding
stock of a corporation described in subsection (a)
after December 31, 2006.’’
[§ 116. Repealed. Pub. L. 99–514, title VI, § 612(a),
Oct. 22, 1986, 100 Stat. 2250]
Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 37; June
25, 1959, Pub. L. 86–69, § 3(a)(2), 73 Stat. 139; Sept. 14,
1960, Pub. L. 86–779, § 10(f), 74 Stat. 1009; Feb. 26, 1964,
Pub. L. 88–272, title II, § 201(c), (d)(6)(C), 78 Stat. 32; Nov.
13, 1966, Pub. L. 89–809, title I, § 103(g), 80 Stat. 1552; Oct.
4, 1976, Pub. L. 94–455, title X, §§ 1051(h)(2), 1053(d)(1),
title XIX, § 1901(a)(20), 90 Stat. 1647, 1649, 1766; Apr. 2,
1980, Pub. L. 96–223, title IV, § 404(a), 94 Stat. 305; Aug.
13, 1981, Pub. L. 97–34, title III, § 302(b)(2), 95 Stat. 272;
July 18, 1984, Pub. L. 98–369, div. A, title V, § 542(b), 98
Stat. 891, authorized partial exclusion of dividends re-
ceived by individuals.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL
Repeal applicable to taxable years beginning after
Dec. 31, 1986, see section 612(c) of Pub. L. 99–514, set out
as an Effective Date of 1986 Amendment note under sec-
tion 301 of this title.
§ 117. Qualified scholarships
(a) General rule
Gross income does not include any amount re-
ceived as a qualified scholarship by an indi-
vidual who is a candidate for a degree at an edu-
cational
organization
described
in
section
170(b)(1)(A)(ii).
Cross-references
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Federal law — U.S. Code and appendices · legal_authorities
Gross income does not include—
(1) income derived from any public utility or the exercise of any essential governmental function and accruing to a State or any political subdivision thereof, or the District of Columbia; or
(2) income accruing to the government of any possession of the United States, or any political subdivision thereof.
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 115
Stored review status: release_metadata_unconfirmed. Same stored citation; legal effect and authority still require review.
Federal law — U.S. Code and appendices · legal_authorities
In regulating the railroad industry, it is the policy of the United States Government—
(1) to allow, to the maximum extent possible, competition and the demand for services to establish reasonable rates for transportation by rail;
(2) to minimize the need for Federal regulatory control over the rail transportation system and to require fair and expeditious regulatory decisions when regulation is required;
(3) to promote a safe and efficient rail transportation system by allowing rail carriers to earn adequate revenues, as determined by the Board;
(4) to ensure the development and continuation of a sound rail transportation system with effective competition among rail carriers and with other modes, to meet the needs of the public and the national defense;
(5) to foster sound economic conditions in transportation and to ensure effective competition and coordination between rail carriers and other modes;
(6) to maintain reasonable rates where there is an absence of effective competition and where rail rates provide revenues which exceed the amount necessary to maintain the rail system and to attract capital;
(7) to reduce regulatory barriers to entry into and exit from the industry;
(8) to operate transportation facilities and equipment without detriment to the public health and safety;
(9) to encourage honest and efficient management of railroads;
(10) to require rail carriers, to the maximum extent practicable, to rely on individual rate increases, and to limit the use of increases of general applicability;
(11) to encourage fair wages and safe and suitable working conditions in the railroad industry;
(12) to prohibit predatory pricing and practices, to avoid undue concentrations of market power, and to prohibit unlawful discrimination;
(13) to ensure the av
Source: Supplied U.S. Code snapshot — release unconfirmed · 49 U.S.C. § 10101
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Federal law — U.S. Code and appendices · legal_authorities
Page 417
TITLE 49—TRANSPORTATION
§ 10101
State or a unit of local government under the
program shall be not more than 80 percent.
(g) TECHNICAL ASSISTANCE.—The Secretary, in
consultation with the Undersecretary and the
Director, shall develop a process to provide tech-
nical assistance to Indian Tribes and under-
served communities to assist in the project de-
sign and grant process and procedures.
(h)
ADMINISTRATIVE
EXPENSES.—Of
the
amounts made available for each fiscal year to
carry out the program, the Secretary, the Un-
dersecretary, and the Director may use not more
than 2 percent to pay the administrative ex-
penses necessary to carry out this section.
(i) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to carry out the
program $800,000,000 for each of fiscal years 2022
through 2026.
(Added Pub. L. 117–58, div. B, title I, § 21203(a),
Nov. 15, 2021, 135 Stat. 676.)
SUBTITLE IV—INTERSTATE
TRANSPORTATION
PART A—RAIL
Chapter
Sec.
101.
GENERAL PROVISIONS ...................
10101
105.
JURISDICTION ...................................
10501
107.
RATES ....................................................
10701
109.
LICENSING ...........................................
10901
111.
OPERATIONS .......................................
11101
113.
FINANCE ...............................................
11301
115.
FEDERAL-STATE RELATIONS .......
11501
117.
ENFORCEMENT:
INVESTIGA-
TIONS,
RIGHTS,
AND
REM-
EDIES .................................................
11701
119.
CIVIL
AND
CRIMINAL
PEN-
ALTIES ...............................................
11901
PART B—MOTOR CARRIERS, WATER CARRIERS,
BROKERS, AND FREIGHT FORWARDERS
Chapter
Sec.
131.
GENERAL PROVISIONS ...................
13101
133.
ADMINISTRATIVE PROVISION
Source: Supplied 2024 U.S. Code historical extraction · 49 U.S.C. § 10101
Stored review status: historical_2024_not_currentness_verified. The source passage cites 49 U.S.C. § 10101. This identifies an authority to review, not proof of applicability.