---
kind: "range"
citation: "26 C.F.R. §§ 1.145-0–1.145-2"
title: "26"
from: "1.145-0"
to: "1.145-2"
count: 3
url: "https://uscodex.org/cfr/26/1.145-0..1.145-2"
---

# §1.145-0. Table of contents.


This section lists the captioned paragraphs contained in §§ [1.145-1](/cfr/26/1.145-1.md) and [1.145-2](/cfr/26/1.145-2.md).


# §1.145-1. Qualified 501(c)(3) bonds.

- (a) **Overview.** Interest on a private activity bond is not excludable from gross income under [section 103(a)](/cfr/26/103.md?p=a) unless the bond is a qualified bond. Under [section 141(e)(1)(G)](/cfr/26/141.md?p=e-1-G), a qualified 501(c)(3) bond issued under [section 145](/cfr/26/145.md) is a qualified bond. Under [section 145](/cfr/26/145.md), a qualified 501(c)(3) bond is any bond issued as a part of an issue that satisfies the requirements of [sections 145(a) through (d)](/cfr/26/145.md?p=a..d).
- (b) **Scope.** [Sections 1.145-0 through 1.145-2](/cfr/26/1.145-0..1.145-2.md) apply for purposes of [section 145(a)](/cfr/26/145.md?p=a).
- (c) **Effective dates.** For effective dates of [§§ 1.145-0 through 1.145-2](/cfr/26/1.145-0..1.145-2.md), see [§ 1.141-15](/cfr/26/1.141-15.md).

# §1.145-2. Application of private activity bond regulations.

- (a) **In general.** Except as provided in this section, [§§ 1.141-0 through 1.141-15](/cfr/26/1.141-0..1.141-15.md) apply to [section 145(a)](/cfr/26/145.md?p=a). For example, under this section, [§ 1.141-1](/cfr/26/1.141-1.md), and [§ 1.141-2](/cfr/26/1.141-2.md), an issue ceases to be an issue of qualified 501(c)(3) bonds if the issuer or a conduit borrower 501(c)(3) organization takes a deliberate action, subsequent to the issue date, that causes the issue to fail to comply with the requirements of sections [141(e)](/cfr/26/141.md?p=e) and [145](/cfr/26/145.md) (such as an action that results in revocation of exempt status of the 501(c)(3) organization).
- (b) **Modification of private business tests.** In applying [§§ 1.141-0 through 1.141-15](/cfr/26/1.141-0..1.141-15.md) to [section 145(a)](/cfr/26/145.md?p=a)—
  - (1) References to governmental persons include 501(c)(3) organizations with respect to their activities that do not constitute unrelated trades or businesses under [section 513(a)](/cfr/26/513.md?p=a);
  - (2) References to “10 percent” and “proceeds” in the context of the private business use test and the private security or payment test mean “5 percent” and “net proceeds”; and
  - (3) References to the private business use test in §§ [1.141-2](/cfr/26/1.141-2.md) and [1.141-12](/cfr/26/1.141-12.md) include the ownership test of [section 145(a)(1)](/cfr/26/145.md?p=a-1).
  - (4) References to governmental bonds in [§ 1.141-6](/cfr/26/1.141-6.md) mean qualified 501(c)(3) bonds.
  - (5) References to ownership by governmental persons in [§ 1.141-6](/cfr/26/1.141-6.md) mean ownership by governmental persons or 501(c)(3) organizations.
- (c) **Exceptions—**
  - (1) **Certain provisions relating to governmental programs.** The following provisions do not apply to [section 145](/cfr/26/145.md): [§ 1.141-2(d)(4)](/cfr/26/1.141-2.md?p=d-4) (relating to the special rule for dispositions of personal property in the ordinary course of an established governmental program) and [§ 1.141-2(d)(5)](/cfr/26/1.141-2.md?p=d-5) (relating to the special rule for general obligation bond programs that finance a large number of separate purposes).
  - (2) **Costs of issuance.** Sections [1.141-3(g)(6)](/cfr/26/1.141-3.md?p=g-6) and [1.141-6(d)](/cfr/26/1.141-6.md?p=d) do not apply to the extent costs of issuance are allocated among the other purposes for which the proceeds are used or to portions of a project. For purposes of [section 145(a)(2)](/cfr/26/145.md?p=a-2), costs of issuance are treated as private business use.
- (d) **Issuance costs financed by prior issue.** Solely for purposes of applying the private business use test to a refunding issue under [§ 1.141-13](/cfr/26/1.141-13.md), the use of proceeds of the prior issue (or any earlier issue in a series of refundings) to pay issuance costs of the prior issue (or the earlier issue) is treated as a government use.