QZAB Qualified Zone Academy Bonds Information
TO: Superintendent of Schools
FROM: Carl T. Thurnau, P.E.
Director of Facilities Planning
SUBJECT: 2010 Qualified Zone Academy Bonds
Application Deadline: June 30,2010
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 approximately $504 million since its inception in 1998. Annual allocations for 2009 and 2010 were significantly increased as a result of the American Recovery and Reinvestment Act of 2009. The 2010 allocation is $88,638,000 of which $43,559,761 has been distributed to districts that applied for the 2009 allocation per Commissioner’s Regulations section 155.22. The balance remaining is $45,078,239 which will be awarded under the current application deadline of June 30, 2010. The expiration date of the 2010 allocation is December 31, 2012. 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 facilities planning website. The application period will begin immediately. Applications must be received by June 30, 2010. Please visit our web site www.emsc.nysed.gov/facplan to download a copy of Section 155.22 and the application.
Please send applications to:
Mr. John O’Donnell
NYS Education Department
Office of Facilities Planning – Room 1060 EBA
Albany, NY 12234
If you have any questions or concerns, please contact Mr. O’Donnell at (518) 474-3906.
2010 QZAB application form 3/4/10