Industrial Development Bond

Industrial Development Bond means:
an obligation issued whereby the proceeds are used in the trade or business of a nonexempt person and the payment of the principal or interest is secured by an interest in, or derived from payment with respect to, property or borrowed money used in a trade or business. State and local government bond interest is exempt from federal income tax; however, interest from IDBs is taxable unless certain requirements are met to qualify the bonds for tax exemption. Former IRC (check if this IRC provision is current here) § 103(b).

See also other Tax Terms and Definitions in U.S.A.

private activity bonds.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

See Tax exemption and Tax exemption.