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What does “tax-exempt” mean?

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What does “tax-exempt” mean?

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Typically, Application of Recognition of Exemption for 501c(3) Status means exemption from income tax/other taxes and when accepted will recognize donor contributions to the organization as tax-deductible up to the allowable limits under the law.

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Under certain federal tax code provisions, the interest paid to investors who purchase IDBs is exempt from federal income taxes. However, if a project does not qualify under federal guidelines, federally taxable but state tax-exempt IDBs may be issued if the project meets State law criteria for IDB projects.

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