### Question
How does Income Taxes define Gulf tax credit bond?


### Answer
Under *26 U.S.C. § 1400N*, **Gulf tax credit bond** is defined as:

> any bond issued as part of an issue if—



(i) the bond is issued by the State of Alabama, Louisiana, or Mississippi,



(ii) 95 percent or more of the proceeds of such issue are to be used to—



(I) pay principal, interest, or premiums on qualified bonds issued by such State or any political subdivision of such State, or



(II) make a loan to any political subdivision of such State to pay principal, interest, or premiums on qualified bonds issued by such political subdivision,


  


(iii) the Governor of such State designates such bond for purposes of this subsection,



(iv) the bond is a general obligation of such State and is in registered form (within the meaning of section 149(a)),



(v) the maturity of such bond does not exceed 2 years, and



(vi) the bond is issued after December 31, 2005, and before January 1, 2007

#### Citation:
  - *26 U.S.C. § 1400N*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter Y-Short-Term Regional Benefits > PART II-TAX BENEFITS FOR GO ZONES**

