Helping our Schools - Qualified Zone Academy Bonds
State or local governments can issue bonds at 0% interest cost to them to finance certain public school programs with private business partnerships. Private businesses must contribute money, equipment, or services equal to 10 percent of bond proceeds (which may qualify as a charitable contribution). The Federal government pays interest in the form of tax credit to banks, insurance companies, and certain lending corporations that hold QZABs. Federal allocation to States annually was from 1998-2001. State education agency allocates credit to Qualified Zone Academy Bonds to finance materials, teacher training, building renovation, or equipment for programs that prepare students for jobs or college.
Target Audience
- Banks, insurance companies, or corporations in the business of lending money that are eligible to receive tax credits (in lieu of receiving interest payments) as holders of the bonds.
- Local businesses with specific employee skill sets that could be taught at the secondary school level.
- Businesses interested in providing mentorship or internship opportunities to secondary school students.
- School districts seeking to upgrade schools located in Empowerment Zones (EZs), Enterprise Communities (ECs), or Renewal Communities (RCs).
(FAQ, IRS Form 8860). |
