PERSONAL INCOME TAX BULLETIN 2024-01 
                                      
                        Issued: March 21, 2024 
                                      
                            Tax-Exempt Obligations 
                  for Pennsylvania Personal Income Tax Purposes 
                                      
Interest   – Tax-Exempt 
 
Interest derived from obligations not statutorily free from state or local taxation under any other 
act of the General Assembly or under the laws of the U.S. is subject to PA personal income tax. 
Interest  on  obligations  issued  by  or  on  behalf  of  the  U.S.  government  is  not  subject  to  PA 
personal income tax. 61 Pa. Code §103.16(e). 
 
Interest   N– on Tax-Exempt (Other States) 
 
Interest  on  obligations  of  other  states  and  territories,  their  political  subdivisions  and 
instrumentalities is taxable for PA personal income tax purposes. 61 Pa. Code §103.16(e). 
 
Gain or (Loss) From the Sale, Exchange or Disposition of Tax-Exempt Obligations 
 
Gain or loss shall be recognized on the sale, exchange or other disposition of obligations issued 
by the commonwealth, a public authority, commission, board or other agency created by the 
commonwealth, a political subdivision or exempt from state taxation under the laws of the U.S. 
only with respect to obligations issued on or after Feb. 1, 1994. 61 Pa. Code §103.13(j). 
 
Obligations of Federal Agencies, Instrumentalities and Territories Exempt from PA 
Personal Income Tax: 
 
 ●  Banks for Cooperatives, 12 USC §2134 
 ●  Federal District Banks for Cooperatives, 12 USC §2124 
 ●  Central Banks for Cooperatives, 12 USC §2124 
 ●  Commodity Credit Corporation, 15 USC §713a-5 
 ●  Export-Import Banks, 12 USC §635;635(a) 
 ●  Farm Credit System Assistance Board, 12 USC §2278a-11 (replaces 12USC §2216k) 
 ●  Farm Credit System Land Banks and Land Bank Associations, 12 USC §§2023, 2098 
 ●  Federal Crop Insurance Corporation, 7 USC §1511 
 ●  Federal Deposit Insurance Corporation, 12 USC §1825 
 ●  Federal Farm Credit Banks (merger of Federal District Intermediate Credit Banks and 
  Federal Land Banks, 12 USC §2011), 12 USC §2023 

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 ●  Federal Financing Bank, 12 USC §2290(b) 
 ●  Federal Home Loan Banks, 12 USC §1433 
 ●  Federal Land Bank Associations, 12 USC §2098 
 ●  Financing Corporation, 12 USC §1441(e)(7) 
 ●  General Insurance Fund, issued under  
    Armed Services Mortgage Insurance, 12 USC §1748b(f) 
    National Defense Housing Insurance, 12 USC §1750c(d) 
    Rehabilitation and Neighborhood Conservation Housing Insurance, 12 USC 
    §1715k(h)(7)  
    Rental Housing Insurance Fund, 12 USC §1747g(g) 
    Rental Housing Insurance Fund Mortgage Insurance, 12 USC §1713(i)  
    War Housing Insurance Law, 12 USC §§1739(d) and 1744(e)  
    Insurance of Loans for Manufacture of Houses, 12 USC §1744(i)(4)  
    Mortgage Insurance Benefits, 12 USC §1750c(d) 
 
 ●  Government of the Northern Mariana Islands, 48 USC §1801, and Covenant to Establish a 
  Commonwealth of the Northern Mariana Islands in a Political Union with the United States 
  Article IV §607(a) 
 ●  Government of Puerto Rico, 48 USC §745 
 ●  Government of Virgin Islands, 48 USC §§1403, 1574(b)(iii)(B) 
 ●  Government of Guam, 48 USC §1423a 
 ●  Public Building Trust Participation Certificates, 31 USC §3124(a) 
 ●  Mutual Mortgage Insurance Fund, 12 USC §1710(d) 
 ●  National Credit Union Administration Central Liquidity Facility, 12 USC §1795k(b) 
 ●  Production Credit Associations, 12 USC §2077 
 ●  Public Housing Agencies, 42 USC §§1437i, 1437c(g) 
 ●  Resolution Funding Corporation (REFCORP), 12 USC §§1441b(f)(7), 1432 
 ●  Student Loan Marketing Association, 20 USC §1087-2(b)(2) 
 ●  Tennessee Valley Authority, 16 USC §831n-4(d) 
 ●  United States Postal Service, 39 USC §2005(d)(4) 
 ●  United States Treasury Bonds, Notes, Bills, Certificates and Savings Bonds, 31 USC 
  §§3124, 3102-3106, 3109 
 
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Obligations of Federal Agencies, Instrumentalities or Territories Not Exempt from Taxation on 
Interest or Gain Under the PA Personal Income Tax Act:  
 
NOTE:  Gain  derived  and  interest  received  from  the  following  obligations  is  taxable  for 
Pennsylvania unless the obligation is issued by or on behalf of the  U.S. government or the 
obligation is statutorily free from state or local taxation under an act of the General Assembly 
or under the laws of the U.S.  
  
 ●  Agricultural Credit Insurance Fund (Agricultural Credit), 7 USC §1929(c) 
 ●  Pacific Northwest Transmission (Bonneville Power Administration), 16 USC §838k(c) 
 ●  Electric and Hybrid Vehicle Development Fund, 15 USC §2509(e)(3)(c) 
 ●  Federal Home Loan Mortgage Corporation, 12 USC §1455(a) 
 ●  Federal National Mortgage Association (Fannie Mae), 12 USC §§1719(e) (see 1723a(c)) 
 ●  Federal Ship Financing Fund (Merchant Marine Act), 46 USC §53723 
 ●  Geothermal Resources Development Fund (Geothermal Research), 30 USC §1144 
 ●  Government National Mortgage Association (Ginnie Mae), 12 USC §§1721, 1723 (see 
   1721(d), 1721(g), 1723a(c)) 
 ●  United States Housing Authority, Low Income Housing, 42 USC §1437b 
 ●  Pension Benefit Guaranty Corporation, 29 USC §1305(c) 
 ● Rural Development Insurance Fund, 7 USC §1929a(d) 
 ●  Rural Housing Insurance Fund, 42 USC §1487(h) 
 ●  Rural Telephone Bank, 7 USC §947(b) 
 ●  Securities Investor Protection Corporation (Securities Investor Production Fund), 15 USC 
   §78ddd(h) 
 ●  Small Business Administration, 15 USC §633(c)(5)(A) 
 ●  United States Railway Association, 45 USC §720(e) 

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