### Question
How does the law define build America bond?


### Answer
Under *26 U.S.C. § 54AA*, **build America bond** is defined as:

> any obligation (other than a private activity bond) if—


(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103,


(B) such obligation is issued before January 1, 2011, and


(C) the issuer makes an irrevocable election to have this section apply

#### Citation:
  - *26 U.S.C. § 54AA*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart J-Build America Bonds**

