### Question
How is the "local district heating or cooling system" defined?


### Answer
The term **local district heating or cooling system** is defined in *26 U.S.C. § 142* as follows -

> 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 REQUIREMENTS FOR STATE AND LOCAL BONDS > Subpart A-Private Activity Bonds**

