Specified tax credit bonds--New clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds
, and qualified school construction bonds are specified tax credit bonds for purposes of IRC section 6431(f).
19) Specifically, issuers of qualified school construction bonds and qualified zone academy bonds
could receive the lesser of 100 percent of their interest payment or the amount of interest that would have been paid if the interest rate was determined at the tax credit bond rate.
For more details about Qualified Zone Academy Bond
rules and allocations to states, go to www.
23) IRC section 54(A)(d)(1) states that the term "qualified tax credit bond" means--(a) a qualified forestry conservation bond, (b) a new clean renewable energy bond, (c) a qualified energy conservation bond, (d) a qualified zone academy bond
, or (e) a qualified school construction bond.
Specifically, IRC section 54E(c)(1) increased the national volume cap for qualified zone academy bonds
from $400 million to $1.
Among other provisions included as part of the Taxpayer Relief Act of 1997 was the creation of the first type of tax-credit bond--the Qualified Zone Academy bond
This article, which evaluates data from Form 8860, Qualified Zone Academy Bond
Credit, filed by financial institutions in Tax Year 2005, updates some of the 2004 Form 8860 data presented in Matheson (2007).
Figure C Qualified Zone Academy Bond
(QZAB) Principal and Credits from 2004, by Year of Issue, 1998-2004 [Money amounts are in thousands of dollars] Item 1998-1999 2000 2001 (1) (2) (3) Total QZAB issues 37 85 197 Total QZAB principal 90,714 294,127 766,276 Total QZAB credits, Form 8860, Part 1 6,578 22,587 51,704 Average QZAB credit rate (percent) 7.
The legislation would also provide 30 billion for qualified school infrastructure bonds (QSIBs), $10 billion each year from FY 2018 through FY 2020 and expand the bond authority of and eligible purposes for Qualified Zone Academy Bonds
(QZABS) to allow local education agencies to construct, rehabilitate, retrofit, or repair school facilities.
54E qualified zone academy bonds
, which allows qualified schools to issue bonds for renovations (but not new construction), equipment purchases, teacher training, or developing course materials when they partner with private businesses.
A separate Chiefs' letter announces the extension of Qualified Zone Academy Bonds
(QZABs) through 2011.
The Qualified Zone Academy Bonds
("QZABs") program, created in 1997 by the Tax Payer Relief Act, provides Local Education Authorities with a method of funding school renovations, repairs, training, equipment and other improvements, but not new construction.