
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC115]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
         PART III--ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME
 
Sec. 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 
    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.

(Aug. 16, 1954, ch. 736, 68A Stat. 35; Pub. L. 94-455, title XIX, 
Sec. 1901(a)(19), Oct. 4, 1976, 90 Stat. 1766.)


                               Amendments

    1976--Pub. L. 94-455 struck out ``(a) General rule'' before ``Gross 
income does not include'', struck out subsecs. (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''.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-455 applicable with respect to taxable years 
beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, 
set out as a note under section 2 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 415, 501 of this title; 
title 45 section 1207.
