Qualified school construction bond
Encyclopedia
Qualified School Construction Bond (QSCB) are a U.S. debt instrument created by Section 1521 of the American Recovery and Reinvestment Act of 2009
. Section 54F of the Internal Revenue code covers QSCBs. QSCBs allow schools to borrow at nominal at zero percent for the rehabilitation, repair and equipping of schools. In addition, QSCB funds can be used to purchase land on which a public school will be built. The QSCB lender receives a Federal tax credit in lieu of receiving an interest payment. The tax credit rate is set by the IRS each dayU.S. Treasury Qualified Tax Credit Bond Rates.
The annual allocation of $11,000,000,000 has been approved for 2009 and 2010 resulting in a total of $22,000,000,000 in QSCB authority. The US Treasury and the IRS allocate the authority to issue QSCBs to all fifty states and US possessions. 60% is allocated to the fifty states and US possessions and 40% is allocated among "large local educational agencies." Only the allocations for 2009 have been released by the IRS in Notice 2009-35 and will be published in the Internal Revenue Bulletin 2009-17 on April 27, 2009.
Funds can be used for renovation and rehabilitation projects, as well as equipment purchases. QSCBs can be used for new building construction and land acquisition. All state and local laws applicable to bonds also apply to QSCBs, including Section 148 of the IRS Code. All tax credit bonds covered by Section 54 of the Internal Revenue Code. Section 54A provides general guidance for tax credit bonds and was established by Section 15316 of the Food, Conservation and Energy Act of 2008 (Public Law 110-246). Subsequent sections cover specific tax credit bonds and these sections were established as part of the Emergency Economic Stabilization Act of 2008 .
54B Qualified Forestry Conservation Bonds
54C Clean Renewable Bonds
54D Qualified Energy Conservation Bonds
54E Qualified Zone Academy Bonds
54F Qualified School Construction Bonds
American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February 2009 and signed into law on February 17, 2009, by President Barack Obama.To...
. Section 54F of the Internal Revenue code covers QSCBs. QSCBs allow schools to borrow at nominal at zero percent for the rehabilitation, repair and equipping of schools. In addition, QSCB funds can be used to purchase land on which a public school will be built. The QSCB lender receives a Federal tax credit in lieu of receiving an interest payment. The tax credit rate is set by the IRS each dayU.S. Treasury Qualified Tax Credit Bond Rates.
The annual allocation of $11,000,000,000 has been approved for 2009 and 2010 resulting in a total of $22,000,000,000 in QSCB authority. The US Treasury and the IRS allocate the authority to issue QSCBs to all fifty states and US possessions. 60% is allocated to the fifty states and US possessions and 40% is allocated among "large local educational agencies." Only the allocations for 2009 have been released by the IRS in Notice 2009-35 and will be published in the Internal Revenue Bulletin 2009-17 on April 27, 2009.
Funds can be used for renovation and rehabilitation projects, as well as equipment purchases. QSCBs can be used for new building construction and land acquisition. All state and local laws applicable to bonds also apply to QSCBs, including Section 148 of the IRS Code. All tax credit bonds covered by Section 54 of the Internal Revenue Code. Section 54A provides general guidance for tax credit bonds and was established by Section 15316 of the Food, Conservation and Energy Act of 2008 (Public Law 110-246). Subsequent sections cover specific tax credit bonds and these sections were established as part of the Emergency Economic Stabilization Act of 2008 .
54B Qualified Forestry Conservation Bonds
54C Clean Renewable Bonds
54D Qualified Energy Conservation Bonds
54E Qualified Zone Academy Bonds
54F Qualified School Construction Bonds
External links
- American Recovery and Reinvestment Act of 2009 (Public Law 111-5) U.S. Government Printing Office website
- Food, Conservation and Energy Act of 2008 (Public Law 110-246) U.S. Government Printing Office website
- Emergency Economic Statilization Act of 2008 (Public Law 110-343) U.S. Government Printing Office website
- IRS Notice of QSCB Allocations U.S. IRS website
- QSCB Allocations for 2009 and QZAB Allocations for 2009 and 2010