### Question
How does Income Taxes define qualified small issue bond?


### Answer
Under *26 U.S.C. § 144*, **qualified small issue bond** is defined as:

> any bond issued as part of an issue the aggregate authorized face amount of which is $1,000,000 or less and 95 percent or more of the net proceeds of which are to be used—



(A) for the acquisition, construction, reconstruction, or improvement of land or property of a character subject to the allowance for depreciation, or



(B) to redeem part or all of a prior issue which was issued for purposes described in subparagraph (A) or this subparagraph

#### Citation:
  - *26 U.S.C. § 144*
  - 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 A-Private Activity Bonds**

