Taxable Bond
A bond, the interest on which is not excludable from gross income for federal income tax purposes.
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Tax Credit Bond
A Taxable Bond that provides a tax credit to the holder in lieu of tax-exempt interest.
Dive Deeper on Tax Issues
Learn more about how various aspects of tax law intersect with municipal securities.
See Also
Tax-Advantaged Bonds
Includes tax-exempt bonds, tax credit bonds and direct pay bonds.
Start with the Bond Basics
Hundreds of Terms and Concepts
Political Subdivision
A division of any state or local governmental unit which is a municipal corporation or which has been delegated the right to exercise a sufficient part of the sovereign power of the unit.