### Question
How does the law define net proceeds?


### Answer
Under *26 U.S.C. § 149*, **net proceeds** is defined as:

> given such term by section 150 but shall not include proceeds used to finance issuance costs and shall not include proceeds necessary to pay interest (during such period) on the bonds which are part of the issue.

#### Citation:
  - *26 U.S.C. § 149*
  - 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 B-Requirements Applicable to All State and Local Bonds**

