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§37D-6  Federal tax-exempt status; preference; protection


Published: 2015

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     §37D-6  Federal tax-exempt status;

preference; protection.  (a)  To the extent practicable, financing

agreements issued pursuant to this chapter shall be issued to comply with

requirements imposed by applicable federal law providing that the interest on financing

agreements shall be excluded from gross income for federal income tax purposes,

except as certain minimum taxes or environmental taxes may apply.  The director

and, with the approval of the director, the head of an agency may:

     (1)  Enter into agreements;

     (2)  Establish funds or accounts;

     (3)  Make rebate payments to the federal government;

and

     (4)  Take any action required to comply with

applicable federal tax law.

Nothing in this chapter shall prohibit the issuance

of financing agreements, the interest on which may be included in gross income

for federal income tax purposes.

     (b)  To ensure that interest on a financing

agreement issued pursuant to this chapter that is excluded from gross income

for federal income tax purposes, except as provided in subsection (a), on the

date of issuance shall continue to be excluded, no state officer or employee

shall authorize or allow any change, amendment, or modification to a financing

agreement that would affect the exclusion of interest on the financing agreement

from gross income for federal income tax purposes unless the change, amendment,

or modification shall have received the prior approval of the director. 

Failure to receive the approval of the director shall render any change,

amendment, or modification void. [L 1996, c 119, pt of §2; am L 2001, c 200, pt

of §3; am L 2007, c 126, pt of §1]