Use of QZAB Funds

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Use Of QZAB Funds for “Qualified Purposes”

Generally any use except New Construction. Specifically:

(A) rehabilitating or repairing the public school facility in which the academy is established
(B) providing equipment for use at such academy including equipment for IT, energy efficiency, green energy etc.
(C) developing course materials for education to be provided at such academy
(D) training teachers and other school personnel in such academy.

Indicate the proposed use in the QZAB plan

Why Is QZAB a Good Deal for School Districts?

A QZAB is a better value for the district because, under these tax-credit bonds, the federal government pays, on average, all of the interest, whereas, under tax-exempt bonds, the school district typically recoups only 20 percent of the interest payments.

Available QZAB Allocation:

U.S. Congress, in the last 8 years, has made a total of $3.2 billion in QZAB bonding authority available to all states. Most states have already distributed, or are in the processing of distributing, at least part of their allocations to their school districts.
Nationally, a total of $400 million per year has been available for QZAB since 1998. Most states have used their allocations through 2006.

The 2006 allocation expires on December 31, 2008
The 2007 allocation expires on December 31, 2009

As part of the recent $700 billion bailout package, U.S. Congress passed and the President signed the 2008 and 2009 extension of QZAB program at the $400 million per year level. Thus, adding at least $200 billion currently available from the 2007 allocation, starting early 2009, there will be $1 billion available in QZAB funds.