Mich. Admin. Code R 206.9 — Interest income and gains from sa le or disposal of United States

obligations exempted from state taxation; treatment; interest on federal income tax
refunds.
Rule 9. (1) Interest income and gains from the sale or disposal of United States
obligations, which are exempted from state taxation by the United States Constitution,
treaties, and statutes, are deductible from adjusted gross income. The deduction for
such income shall be reduced by any intere st on indebtedness incu rred in carrying
the United States obligati on and by any other expense, includi ng amortized bond
premiums, deducted from gross income to arrive at adjusted gross income. The income
from the following United States obligations is not subject to state income tax:
(a) United States treasury bonds, notes, bills, and savings bonds.
(b) Bonds, notes, debentures, and other obligations issued by:
(i) Federal intermediate credit banks.
(ii) Federal land banks.
(iii) Federal home loan banks.
(iv) Central banks for co-operatives.
(v) Regional banks for co-operatives.
(vi) Tennessee valley authority.
(vii) United States postal service obligations.
(2) Interest on federal income tax refunds is not exempted from state taxation
and shall not be claimed as a deduction.