Income from North Carolina Obligations A taxpayer may take a deduction on the North Carolina income tax return for interest on bonds, notes, and other obligations of the State of North Carolina or any of its political subdivisions to the extent that this income has already been included in federal taxable income and adjusted gross income, as appropriate. In addition, a taxpayer may take a deduction on the North Carolina tax return for the gain or loss realized on the sale or other disposition of obligations of the State of North Carolina or its political subdivisions issued before July 1, 1995, if North Carolina law under which the obligations were issued specifically exempts the interest or gain. With respect to North Carolina obligations issued after July 1, 1995, the income tax treatment of gains from the sale or disposition of such obligations is the same for federal and State purposes. Example 1: Interest on bonds, notes, debentures or other evidence of the indebtedness issued under G.S. § 131E-28 by the North Carolina Hospital Authorities, including gain from the sale or exchanges of these obligations. (Repealed by Session Laws 2016-5,s.5.3(a), effective May 11, 2016. Example 2: Interest and gain derived from obligations issued by the North Carolina Housing Finance Agency under G.S. § 122A-19. Example 3: Interest and gain derived from bonds issued under the Joint Municipal Electric Power and Energy Act under G.S. § 159B-26. Example 4: Interest on bonds, notes, debentures, or other evidence of indebtedness issued by the North Carolina Medical Care Commission under the Health Care Facilities Finance Act under the provisions of G.S. § 131A-21. Gain from the sale or exchange of these obligations may also be excludible. Example 5: Interest and gain on bonds issued by the North Carolina State Ports Authority under G.S. § 136-265(g). Example 6: Interest on bonds, notes, debentures, and any other evidence of indebtedness issued by a North Carolina Housing Authority (including any corporate agent authorized by Article 1 of Chapter 157 of the General Statutes to exercise the powers of the authority) under the provisions of G.S. § 157-26. Gain from the sale or exchange of these obligations is not excludible. Example 7: Interest on bonds issued by the authorities created under the Industrial and Pollution Control Facilities Financing Act, G.S. § 159C-14. Example 8: Income from bonds issued by boards of trustees of State supported colleges and universities in North Carolina including any gain from the sale or exchange of such bonds under G.S. §§ 116-183 and 116-196. Example 9: Interest and gain received from bonds and notes issued under the provision of the Higher Education Facilities Act by the North Carolina Educational Facilities Finance Agency under G.S. § 159D-55. Example 10: Interest and gain received on obligations issued under Chapter 122D (the North Carolina Agriculture Finance Act) by the North Carolina Agriculture Finance Authority under G.S. § 122D-14.