are subject to a national volume cap to be allocated by the Treasury among the States.
A list of Empowerment Zones and Enterprise Communities is available on the QZAB
site at www.
1397E, to provide a credit to QZAB
holders, so that such bonds generally can be issued without discount or interest.
program, recently extended by Congress through 2001, is based on a time-honored concept: investment through tax breaks.
The 10 percent contribution from private partners may include cash, property, or equipment for use at the QZAB
program is currently funded at $400 million per year for FY2000 and FY2001.
is a taxable bond issued by a state or local government, the proceeds of which are used to improve certain eligible public schools.
II-Group 6-B - High Density Wireless Overlay at West Riverside Elementary School No.
In contrast to existing Federal subsidies for State and local debt issuance, which exempt subnational government bond interest from Federal income taxation, the QZAB
program is structured as a tax credit bond: Instead of yielding cash coupons exempt from Federal income tax, QZABs
entitle investors to Federal income tax credits.
The temporary QZAB
regulations give great discretion to the issuer in determining whether the bonds satisfy the eligibility requirements.