12 USC § 2077 - Taxation

---
identifier: "/us/usc/t12/s2077"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 2077 - Taxation"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "2077"
section_name: "Taxation"
chapter_number: 23
chapter_name: "FARM CREDIT SYSTEM"
subchapter_number: "II"
subchapter_name: "FARM CREDIT ASSOCIATIONS"
part_number: "A"
part_name: "Production Credit Associations"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 92–181, title II, § 2.7, formerly § 2.6, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1633; amended Pub. L. 100–399, title IV, § 401(r), Aug. 17, 1988, 102 Stat. 998; renumbered § 2.7, Pub. L. 101–624, title XVIII, § 1833(1), Nov. 28, 1990, 104 Stat. 3832.)"
---


# § 2077. Taxation

Each production credit association and its obligations are instrumentalities of the United States and as such any and all notes, debentures, and other obligations issued by such associations shall be exempt, both as to principal and interest, from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States or any State, territorial, or local taxing authority, except that interest on such obligations shall be subject to Federal income taxation in the hands of the holder.

---

**Source Credit**: (Pub. L. 92–181, title II, § 2.7, formerly § 2.6, as added Pub. L. 100–233, title IV, § 401, Jan. 6, 1988, 101 Stat. 1633; amended Pub. L. 100–399, title IV, § 401(r), Aug. 17, 1988, 102 Stat. 998; renumbered § 2.7, Pub. L. 101–624, title XVIII, § 1833(1), Nov. 28, 1990, 104 Stat. 3832.)

## Editorial Notes

### Prior Provisions

A prior section 2077, .6, , ; , , ; , (8), , ; , §§ 802(k), 805(f), , , 1715, related to net earnings, prior to the general amendment of this subchapter by .

A prior section 2078, .7, , ; , , , related to distribution of assets on liquidation, prior to the general amendment of this subchapter by .

A prior section 2079, .8, , ; , , , related to taxation, prior to the general amendment of this subchapter by .

### Amendments

1988— substituted “interest,” for “interest” and inserted “, except that interest on such obligations shall be subject to Federal income taxation in the hands of the holder”.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1988 Amendment

Amendment by  effective immediately after amendment made by , which was effective 6 months after , see , set out as a note under .

### Effective Date

, , , provided that this section is effective 6 months after .