### Question
How is the "qualified local bus" defined?


### Answer
The term **qualified local bus** is defined in *26 U.S.C. § 6427* as follows -

> 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**

