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We hold that the private business use test is not met.
Accordingly, the proposed bonds will not be private activity
bonds.23 Interest on those bonds will be excludable from gross
income under section 103(a).
Decision will be
entered for petitioner.
23A bond issue meets the private business tests of sec.
141(b) if it meets both the private business use test and the
private security or payment test. City of New York v.
Commissioner, 103 T.C. at 498. Because the bond issue in the
instant case fails to meet the private business use test, it is
unnecessary for us to discuss whether the private security or
payment test is met.
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