### Question
What does State or local bond mean?


### Answer
**State or local bond** has the following meaning in *26 U.S.C. § 103*:

> an obligation of a State or political subdivision thereof

#### Citation:
  - *26 U.S.C. § 103*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

