### Question
How does the law define local district heating or cooling system?


### Answer
Under *26 U.S.C. § 142*, **local district heating or cooling system** is defined as:

> any local system consisting of a pipeline or network (which may be connected to a heating or cooling source) providing hot water, chilled water, or steam to 2 or more users for—


(i) residential, commercial, or industrial heating or cooling, or


(ii) process steam

#### Citation:
  - *26 U.S.C. § 142*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIRE- > Subpart A-Private Activity Bonds**

