Income Tax Exemptions by Investments in USA

[satyanesh]

Hi All,

Will there be a tax exemption in USA if we do some investments in the Government bodies. In India there are such exemptions and there will be a limit.
Please any one let me know if we can do the same in USA also and if so the companies in which we need to do such investments.

Thanks for the help!

[Jeff4cpa]

You can invest in tax free municipal bonds. They come in two flavors-subject to alternative minimun tax and not subject to alternative minimum tax. I recommend the not subject to...