Qualified Zone Academy Bond

The federal Qualified Zone Academy Bond (QZAB) program provides tax credits on school district bonds issued to finance eligible projects. Through QZABs, school districts with low-income populations can save on interest costs associated with financing school renovations. The federal government covers all of the interest on these bonds, resulting in savings up to 50 percent of the cost of these renovation and improvement projects. The interest payment is actually a tax credit, in lieu of cash, provided to the financial institution that holds the bonds.

To qualify, there must be a reasonable expectation that at least 35 percent of the school’s students or program participants will be eligible for free or reduced-cost lunches under the National School Lunch Act when the bonds are issued. The school district also must obtain commitments from private entities for "qualified contributions," such as equipment, technical assistance, or volunteer services, with a present value of not less than 10 percent of the proceeds of the bond issue. Please refer to http://www.qzab.org for detailed information concerning the program.

Wisconsin was allocated $676,000 in QZAB issuance authority for each of the calendar years 2006 and 2007 respectively. There has been no QZAB allocation for 2007.

January 30, 2007 Letter to School District Administrators
From: David Carlson, Director, School Financial Services Team - Subject: Qualified Zone Academy Bond Program

2006-2007 QZAB Allocation

Qualified Zone Academy Bond Program General Information

Please refere to the U.S Department of Education's website at http://www.qzabs.com for detailed information concerning the program.

If you have questions regarding the program, please contact Natalie Rew, School Financial Services, at (608) 267-9212 or natalie.rew@dpi.wi.gov.

For questions about this information, contact dpifin@dpi.wi.gov (608) 267-9114

Last updated on 2/25/2008 12:04:34 PM