### Question
How is the term State or local bond defined?


### Answer
The term **State or local bond** is defined in *26 U.S.C. § 103* as the following:

> an obligation of a State or political subdivision thereof

#### Citation:
  - *26 U.S.C. § 103*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

