1.147-1—Other requirements applicable to certain private activity bonds.
(a) Overview.
Interest on a private activity bond is not excludable from gross income under section 103(a) unless the bond is a qualified bond. Under section 147, certain requirements must be met for a private activity bond to qualify as a qualified bond.
(b) Scope.
Sections 1.147-0 through 1.147-2 apply for purposes of the rules in section 147 for qualified private activity bonds that permit use of proceeds to acquire land for environmental purposes ( section 147(c)(3) ), permit use of proceeds for certain rehabilitations ( section 147(d) (2) and (3) ), prohibit use of proceeds to finance skyboxes, airplanes, gambling establishments and similar facilities ( section 147(e) ), and require public approval ( section 147(f) ), but not for the rules limiting use of proceeds to acquire land or existing property under sections 147(c) (1) and (2), and (d)(1).