CODIFICATION OF INTERNAL REVENUE LAWS States, any State, or any of the possessions of the United States, or by any local taxing authority; (2) Exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate, inheritance, or gift taxes and (b) graduated additional income taxes, com- monly known as surtaxes, and excess-profits and war-profits taxes, now or hereafter imposed by the United States, upon the income or profits of indi- viduals, partnerships, associations, or corporations; (3) Exempt, both as to principal and interest, as provided in paragraph (2); and with an additional exemption from the taxes referred to in clause (b) of such paragraph, of the interest on an amount of such notes the principal of which does not exceed $30,000, owned by any individual, partnership, associa- tion, or corporation; or (4) Exempt, both as to principal and interest, from all taxation now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority, except (a) estate, inheritance, or gift taxes, and (b) all income, excess-profits, and war-profits taxes, now or hereafter imposed by the United States, upon the income or prof- its of individuals, partnerships, associations or corporations. (NomT.-Provision (1) applies to Treasury notes outstanding October 31. 1935. For any notes thereafter issued, the terms should be examined for tax exemptions.) Treasury Certificates of Indebtedness.-All certificates of indebtedness are exempt, both as to principal and interest, from all taxation (except estate, inheritance, or gift taxes) now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority. Treasury Bills.-All Treasury bills are exempt, both as to principal and in- terest, from all taxation (except estate, inheritance, or gift taxes) now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority; and the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest within the meaning of this provision. Any gain from the sale or other disposition of Treasury bills is exempt from all taxation (except estate, inheritance, or gift taxes) now or hereafter im- posed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority; and no loss from the sale or other disposition of such Treasury bills is allowable as a deduction, or otherwise recognized, for the purposes of any tax now or hereafter imposed by the United States or any of its possessions. IN HANDS OF FORBIGN HOLDERS Bonds, notes and certificates of indebtedness of the United States, shall, while beneficially owned by a nonresident alien individual, or a foreign cor- poration, partnership, or association, not engaged in business in the United States, be exempt both as to principal and interest from any and all taxation now or hereafter imposed by the United States, any State, or any of the pos- sessions of the United States or by any local taxing authority. (Sec. 3 of the Fourth Liberty Bond Act, approved July 9, 1918, as amended by Sec. 4 of the Victory Liberty Loan Act, approved March 8, 1919.) (U. S. C., Title 81, § 750.) (B) INSTRUMENTALITIES OF THE UNITED STATES AND THEIR OBLIGATIONS BANKS FOR OOOP!RATIVIB See Production Credit Corporations. CENTRAL BANK FOR CX0PERATIMVI See Production Credit Corporations. COMMODrIT CREDIT CORPOBATION Bonds, notes, debentures, and other similar obligations issued by the Com- modity Credit Corporation under the provisions of this Act shall be deemed and held to be instrumentalities of the Government of the United States, and as such they and the income derived therefrom shall be exempt from Fed- eral,
- * taxation (except surtaxes, estate, inheritance, and gift taxes).
The Commodity Credit Corporation, including its franchise, its capital, reserves, and surplus, and its income shall be exempt from all taxation now or hereafter imposed by the United States, * * * (Mar. 8, 1938, c 44, sec.5, 52 Stat. 108).
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