### Question
Can you define what tax-exempt financing means?


### Answer
**Tax-exempt financing** is defined as the following in *26 U.S.C. § 145*:

> financing provided by tax-exempt bonds

#### Citation:
  - *26 U.S.C. § 145*
  - 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**

