QZAB Qualified Zone Academy Bonds Information
February 1, 2017
TO: Superintendent of Schools
Charter School Administrators
FROM: Christina Coughlin
Coordinator Educational Management Services
SUBJECT: 2015 and 2016 Qualified Zone Academy Bonds
REVISED Application Deadline: March 1, 2017
The application deadline for Qualified Zone Academy Bond (QZAB) allocations for 2015 and 2016 has been extended until March 1, 2017 due to the need to notify charter schools of their eligibility to submit an application, and to correct certain information included on the NYSED Office of Facilities Planning website related to percentages of students who were eligible for participation in the National School Lunch Program. This information will be used to determine whether a school district qualifies for an allocation under this program.
NOTE: Any school that applied previously (for the November 1, 2016 deadline) does not need to re-apply for consideration. Your application will be considered in a manner consistent with Section 155.22 of the Commissioner’s regulations, along with all other eligible applicants. Charter Schools and LEAs that have not yet applied are encouraged to do so.
As you may be aware, the federal government enacted legislation and regulations in 1996 providing Qualified Zone Academy Bond (QZAB) tax credits in lieu of interest payments for eligible districts (26 USC Section 1397E). This legislation allows school districts and charter schools to forego interest payments on capital construction debt that would otherwise be paid by the district and its taxpayers. In order to be eligible for the program at least 35 percent of a district’s student enrollment must be eligible to receive free or reduced price lunches under the National School Lunch Program, or the district must be located in a federally designated empowerment or enterprise community.
Annual allocations for 2015 and 2016 are $24,582,000 each. Awards will be processed after the revised application deadline of March 1, 2017. The expiration date of the 2015 allocation is December 31, 2017, and the expiration date for the 2016 allocation is December 31, 2018. The tax credits can be used for rehabilitating or repairing the public school facility in which a qualified zone academy is established, providing equipment for use at such academy, developing course materials for education to be provided at such academy and/or training teachers and other school personnel in such academy. State Building Aid will be available for qualifying capital projects.
At the federal level, the Federal Department of the Treasury and the Internal Revenue Service will jointly administer the QZAB allocation. The NYS Education Department’s Office of Facilities Planning will coordinate New York State’s allocation.
Applications are available on the Office of Facilities Planning website. The REVISED APPLICATION PERIOD will begin immediately. Applications must be received by March 1, 2017. Please visit our web site www.p12.nysed.gov/facplan/QZAB/QZAB.html to download a copy of Section 155.22, the application, and the revised FRPL Eligibility List.
Please send applications to:
Ms. Rosanne Groff
NYS Education Department
Office of Facilities Planning
89 Washington Avenue, Room 1060 EBA
Albany, NY 12234
If you have any questions or concerns, please contact Ms. Groff at (518) 474-3906.