Sec. 103 Interest on State and local bonds
(a) Exclusion. Except as provided in subsection (b), gross income does not include interest on any State or local bond.
(b) Exceptions. Subsection (a) shall not apply to--
(c) Definitions. For purposes of this section and part IV--
(1) State or local bond. The term "State or local bond" means an obligation of a State or political subdivision thereof.
(2) State. The term "State" includes the District of Columbia and any possession of the United States.