QZAB Qualified Zone Academy Bonds Information
July 28, 2016
TO: Superintendent of Schools
FROM: Carl T. Thurnau, P.E.
Director of Facilities Planning
SUBJECT: 2015-2016 Qualified Zone Academy Bonds
Application Deadline: November 1, 2016
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 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.
QZAB tax credits for New York State totaled over $550 million since its inception in 1998. Annual allocations for 2015 and 2016 are $24,582,000 each. Awards will be processed after the application deadline of November 1, 2016. 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 rehabilitation or repair of existing facilities to serve the Qualified Zone 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.
Section 155.22 of the Regulations of the Commissioner of Education pertain to QZAB, were initially approved by the Regents on October 5, 2000, and became effective November 20, 2000. Section 155.22 was amended on December 19, 2001 to assure current and future allocations are exhausted. Applications are available on the Office of Facilities Planning website. The application period will begin immediately. Applications must be received by November 1, 2016. Please visit our web site www.p12.nysed.gov/facplan to download a copy of Section 155.22 and the application.
Please send applications to:
Ms. Rosanne Groff
NYS Education Department
Office of Facilities Planning – Room 1060 EBA
Albany, NY 12234
If you have any questions or concerns, please contact Ms. Groff at (518) 474-3906.