Issuers of QZABs
receive 100 percent of the interest paid to the borrower if the interest were determined at the tax credit bond rate determined under section 54A(b) (3) for qualified tax credit bonds.
A list of Empowerment Zones and Enterprise Communities is available on the QZAB
site at www.
These agencies have considerable flexibility in using QZABs
for rehabilitating or repairing school facilities, purchasing equipment, developing curricula and training school personnel; they cannot be used for new construction.
Bank of America is the market leader in QZAB
financings across the country and has financed three of the largest such deals completed in 2003.
NEF has teamed up with banks to make it possible for all eligible schools -- those with 35% of students on free or reduced lunch -- to receive QZAB
funds for renovation, equipment, curriculum, professional development etc.
The Act also authorized issuance of up to $400 million of QZABs
annually in calendar years 2002 and 2003.
Variable 8: * IRS has explicit requirements for investors and issuers Issuers: -are arbitrage exempt -must spend proceeds and interest on projects -have three years to spend funds -must calculate donations/PV Investors: -hold debt to maturity -certify taxable position for debt period Variable 9: * DELL Corp will contribute more than $1,852,076 * Other contributions totaled $1,859,178 * Other contributions will be used for future QZABs
Variable 10: * 7.
Investors in QZABs
include the amount of the tax credit in their taxable incomes and deduct the same amount from their income tax liabilities.
She also reminded them 2005 QZABs
allocations will expire at the end of this year.
4 billion in 2002, and allow the proceeds of QZABs
to be used for construction.
The proceeds of QZAB
issuance may be used to renovate school buildings, purchase equipment, develop curricula, and train school personnel; QZABs
may not be used for new construction.
First, because QZABs
are not required to be traditional bonds, but can be a simple loan, the issuance process may be streamlined and made less costly.