The words in parentheses were not in the original headline, and they are incorrect. The income from municipal bonds does not create "tax deductions," but, rather, is free from federal tax.
For example, if you have $100,000 in taxable income from your job, and receive $10,000 in interest from munis, you would pay taxes on the $100,000, but not on the $10,000. If, on the other hand, the interest was from corporate bonds, you would owe taxes on the entire $110,000.
My mistake.
Should be phrased “limits on taxable income exclusions” if space permitted. You are free to ping the mods.