### Question
How does the law define income percentage?


### Answer
Under *26 U.S.C. § 143*, **income percentage** is defined as:

> the percentage (but not greater than 100 percent) which—


(i) the excess of—


(I) the modified adjusted gross income of the taxpayer for the taxable year in which the disposition occurs, over


(II) the adjusted qualifying income for such taxable year, bears to


  

(ii) $5,000

#### Citation:
  - *26 U.S.C. § 143*
  - Heading: **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**

