### Question
What does qualified local bus mean?


### Answer
**Qualified local bus** has the following meaning in *26 U.S.C. § 6427*:

> any local bus—



(i) which has a seating capacity of at least 20 adults (not including the driver), and



(ii) which is under contract (or is receiving more than a nominal subsidy) from any State or local government (as defined in section 4221(d)) to furnish such transportation

#### Citation:
  - *26 U.S.C. § 6427*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 65-ABATEMENTS, CREDITS, AND REFUNDS > Subchapter B-Rules of Special Application**

