§ 115. Income of States, municipalities, etc.
§ 115.
Income of States, municipalities, etc.
Gross income does not include—
(1)
income derived from any public utility or the exercise of any essential governmental function and accruing to a State or any political subdivision thereof, or the District of Columbia; or
(2)
income accruing to the government of any possession of the United States, or any political subdivision thereof.