NCEF Resource List: Tax Credit Bonds for School Construction, Renovation, and Repair
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TAX CREDIT BONDS FOR SCHOOL CONSTRUCTION, RENOVATION, AND REPAIR

Information on Qualified School Construction Bonds, the Qualified Zone Academy Bond (QZAB) program, and Build America Bonds to finance school and higher education renovation, modernization, and construction.


References to Books and Other Media

Qualified School Construction Bonds Issuance 2009, 2010, and 2011. Adobe PDF
(Thomson Reuters, The Bond Buyer, Sep 2011)
Lists date, issuer, and amount of qualified school construction bonds issued from 2009 through the present. The list is continuously updated.

Report to Ohio School District Clients - Qualified Zone Academy Bonds
Squire, Sanders & Dempsey
Jul 2011
Explains that Ohio school districts have a significant opportunity to finance renovations to certain school facilities through the qualified zone academy bond (QZAB) program. More than $100 million in 2009 and 2010 QZAB volume cap remains available for eligible Ohio school districts to issue “direct payment” tax credit bonds. An issuer of QZABs utilizing 2009 or 2010 QZAB volume cap may elect to receive subsidy payments directly from the federal government in lieu of the tax credit otherwise available to holders of QZABs. The window of opportunity to issue direct payment QZABs is closing, with approximately $50 million of 2009 volume cap expiring at the end of 2011 and a similar amount of 2010 volume cap expiring at the end of 2012.

Stimulus Funding and Tax Credit Bonds for School Construction. Adobe PDF
(National Clearinghouse for Educational Facilities., May 2011)
Summary chart of continuously updated information on sources of Recovery Act funding for school, college, and university facilities from the U. S. Departments of Education, Treasury, Energy, Interior, Agriculture, Commerce, and more. Includes links to guidance documents and application forms, as well as announcements of winning projects. 1p.

Build America Bonds Issues Adobe PDF
(Thomson Reuters, The Bond Buyer, Apr 2011)
Includes sale date, issue, amount, ratings, and call provision of Build America Bonds issued in 2010. School districts, colleges, univerities, and community colleges are identified. The list is continuously updated.

California Department of Education, Qualified School Construction Bonds
(California Department of Education, 2011)
Includes 2010 Qualified School Construction Bond results and 2009 Qualified School Construction Bond Lottery results.

Georgia State Financing and Invesment Commission. Qualified School Construction Bonds.
(Georgia State Financing and Invesment Commission, 2011)
Includes Georgia 2009 allocation, Georgia 2010 allocation and Direct Local Allocations by Treasury for 2009 and 2010, and QSCB Allocation and Issuance Status, March 2011.

Iowa Department of Education Qualified School Construction Bonds
(Iowa Department of Education , 2011)
Includes Iowa's 2009 QSCB recipients and 2010 QSCB recipients.

Utah State Office of Education. Facilities and Safety. Qualified Zone Academy Bonds and Qualified School Construction Bonds.
(Utah State Office of Education, 2011)
Includes QZAB/QSCB Allocations to Utah School Districts and Public Charter Schools for 2009, 2010, and 2011.

Washington State Office of Public Instruction. American Recovery and Reinvestment Act (ARRA) School Bond Opportunities.
(Washington State Office of Public Instruction, 2011)
Includes 2010 Qualified School Construction Bond Allocations announced January 2011 and Qualified Zone Academy Bonds—2011 Authorization for Washington state.

Federal Spending on PK-12 School Facilities. Adobe PDF
Filardo, Mary; O'Donnell, Sean
(National Clearinghouse for Educational Facilities, Washington, DC , Nov 2010)
Describes federal grant, tax, and finance programs dedicated to school construction, as well as grant, tax, and finance programs whose funds may be used for school construction. Each program is described in text, accompanied by charts that illustrate amounts allocated to and distributed from those programs in fiscal year 2009, through the American Recovery and Reinvestment Act of 2009, and the federal agencies managing the funds along with how much each agency was allocated. Also discussed and illustrated is the total United States capital outlay for public schools 2005-2008, and sources of operating and capital funding for U.S. schools. The document notes that the federal government considers school facilities a local responsibility, and that there is no staff dedicated to school the issue at the U.S. Department of Education. Twenty-nine links to the programs' websites are provided. 17p.

Policy Letter from the Education Secretary on Qualified School Construction Bonds and Qualified Zone Academy Bonds.
(U. S. Deparment of Education, Jun 11, 2010)
Letter to Chief State School Officers, informing them about 2010 allocations for Qualified School Construction Bonds (QSCBs) and Qualified Zone Academy Bonds (QZABs), as well as recent legislation and guidance concerning QSCBs and QZABs.

Wisconsin Department of Public Instruction, Economic Recovery and Reinvestment, Qualified School Construction Bonds
(Wisconsin Department of Public Instruction, Jun 2010)
Includes program description, application process, timeline, and list of district allocations.

Direct Payment Subsidy Option for Certain Qualified Tax Credit Bonds and Build America Bonds. Adobe PDF
(U.S. Treasury Department, Apr 2010)
The interim guidance outlines how issuers of qualified school construction bonds, qualified zone academy bonds, qualified energy conservation bonds, and new clean renewable energy bonds can take advantage of the new direct subsidy payment mode, as was authorized by a jobs law enacted in March, 2010. 14p.

2010 Allocations to States of Volume Cap for Qualified School Construction Bonds Adobe PDF
(U.S. Treasury Department, Mar 17, 2010)
This shows how the $11 billion of allocation authority to issue qualified school construction bonds for 2010 will be divided up among states and large local educational agencies. Under the allocations for 2010, states will receive $6.6 billion of the authority and large local educational agencies will receive $4.4 billion. Among the states, California will receive the largest allocation of almost $720.1 million, followed by Texas at $547.7 million. Of the local entities, New York City will receive the largest allocation, roughly $664.0 million, followed by the Puerto Rico Department of Education at almost $380.4 million, Los Angeles Unified at almost $290.2 million, and the city of Chicago School District 299 at $257.1 million. 5p.

Interim Analysis of School Facility Funding in the American Recovery and Reinvestment Act of 2009 Including Expenditures through January 5, 2010. Adobe PDF
(21st Century School Fund , Feb 08, 2010)
This brief report highlights initial findings related to the following questions: (1) How much disparity exists in school facility spending by state and locality?; (2) How were school facilities addressed in the American Recovery & Reinvestment Act?; (3) What has happened to our nation's school facilities as a result of ARRA provisions?; and (4) Which schools and which students benefited from ARRA expenditures?

Kansas State Department of Education, Qualified School Construction Bonds
(Kansas State Department of Education, 2010)
Includes Kansas 2009 and 2010 allocations.

Maine Department of Education. Federal Facility Programs. (QZABS and QSCBs)
(Maine Department of Education, 2010)
Includes Maine's 2009 and 2010 allocations and approved projects.

Montana Deferred Maintenance & Energy Efficiency Improvement Grants
(Montana Department of Commerce, 2010)
Information on Montana's stimulus fund allocations for school facilities, including: Quick Start (HB645), Deferred Maintenance & Energy Efficiency Improvement Grants (HB645); Quality Schools Facility Grant Program (HB152); and Qualified School Construction Bonds.

Qualified School Construction Bonds' First Exam: Risks and Benefits for Issuers and Investors.
(Fitch Ratings, New York, NY, Oct 26, 2009)
Reports that school districts with low credit ratings still have to offer interest payments on special tax credit bonds included in the U.S. stimulus plan. To compensate for weaker credit ratings and changing market conditions, some issuers have had to offer supplemental interest payments or original issue discounts. The American Recovery and Reinvestment Act passed in February created a new funding option for schools: construction bonds that offer federal tax credits in place of interest payments. Unlike past tax credit bonds, these offsets for federal income tax liabilities can be sold and traded separately from the bond principal. The credits allow schools to issue debt without having to pay interest, but some are finding they have to offer more incentives to attract buyers. 3p
TO ORDER: http://www.alacrastore.com/research/fitch-ratings-Qualified_School_Construction_Bonds_

IRS Releases Guidance on ARRA Bond Provisions.
(Internal Revenue Services, United States Department of the Treasury, Oct 2009)
The American Recovery & Reinvestment Act of 2009 (ARRA) created several new types of tax-exempt bonds and tax credit bonds under the Internal Revenue Code. The latest guidance, forms and information on the ARRA bond provisions is available at links on this webpage, including Qualified School Construction Bonds, Build America Bonds, Qualified Zone Academy Bonds, various energy bonds,and Tribal Economic Development bonds. Information on Davis-Bacon is included.

Recovery Act Bond Finance: Qualified School Construction Bonds.
Prussing, Mark; Blacker, Roan; Brown, Duncan
(Washington State Department of Commerce, Olympia , Jul 31, 2009)
Provides detail on the Qualified School Construction Bond (QSCB) finance program, as supported by the American Recovery and Reinvestment Act (ARRA) of 2009. An overview of the program and its mechanics is followed by a comparison of these funds with the Qualified Zone Academy Bond (QZAB) and the Build America Bond (BAB) programs. A case study from Broward County (Florida) schools is included. 16p.

Build America Bonds Issuance and Trade Activity.
(Municipal Securities Rulemaking Board, Jul 2009)
State and local governments are primarily issuing Build America Bonds, a new form of debt created by the economic stimulus plan, for public improvement projects, according to data released by the Municipal Securities Rulemaking Board. As of June 11, 45 percent of the taxable debt's proceeds have been earmarked for general public improvement projects, 30 percent have gone to transportation, and 16 percent to education. Includes a complete list of bonds issued to school districts, colleges, and universities as of June 11, 2009. 6p.

Key Policy Letter from the Education Secretary to Chief State School Officers on Authorization of Qualified School Construction Bonds and Build America Bonds, and the Extension of Qualified Zone Academy Bonds.
(U. S. Deparment of Education, May 29, 2009)
This letter describes the benefits of the Qualified School Construction Bonds (QSCB), Build America Bonds (BAB), and Qualified Zone Academy Bonds (QZAB) programs to help LEAs save money and make their repair, renovation, or construction dollars go further. Includes a fact sheet with basic facts on the bond programs, and a table with 2009 allocations to States of QSCBs and QZABs.

Qualified School Construction Bond Allocations for 2009.
(U. S. Department of Treasury, Internal Revenue Service Bulletin 2009-16, Apr 27, 2009)
This notice provides guidance on qualified tax credit bonds called Qualified School Construction Bonds (QSCBs) under section 54F of the Internal Revenue Code. The notice sets forth the amount of QSCBs that may be issued by each State and large local education agency in 2009. QSCBs may be issued to finance certain construction and land acquisition expenditures relating to public school facilities.

School Construction Bond Distributions to States and School Districts.
Cohen, Jennifer
(New America Foundation, Ed Money Watch Blog, Apr 21, 2009)
Analysis of Qualified School Construction Bond distributions to states and school districts that finds that there is little relationship between the poor student population and the distribution of construction bond face value to states and LEAs. Includes spreadsheets containing data on construction bond distributions to states and to the 100 LEAs with the most poor students.

Build America Bonds and Direct Payment Subsidy Implementation.
(U. S. Department of the Treasury, Internal Revenue Service Bulletin 2009-16, Apr 20, 2009)
This notice provides guidance on Build America Bonds under section 54AA of the Internal Revenue Code. It includes guidance on eligible types of projects and financings, initial implementation of the direct federal subsidy payment procedures, elections to use this program, and information reporting for this program. Certain guidance in this notice also applies to another type of Build America Bond in which a federal subsidy is delivered in the form of tax credits to investors instead of direct federal subsidy payments to state and local governments.

Qualified Zone Academy Bond Allocations for 2008 and 2009.
(U. S. Department of Treasury, Internal Revenue Service Bulletin 2009-16, Apr 20, 2009)
This notice provides guidance on qualified tax credit bonds called Qualified Zone Academy Bonds (QZABs) under section 54E of the Internal Revenue Code. The notice sets forth the amount of QZABs that may be issued within each State for each of the calendar years 2008 and 2009. QZABs may be issued to finance certain expenditures relating to a qualified zone academy established by a local education agency.

Tax Credit Bonds: Overview and Analysis. Adobe PDF
Maguire, Steven
(Congressional Research Service, Apr 16, 2009)
Includes executive summary, a comparison of tax credit bonds vs. other bonds, tax credit bond stripping, allocation and purpose of tax credit bonds, and state-by-state allocations of selected TCBs. 17p.

Federal Bond Programs Available for School Construction and Repairs.
(National School Boards Assocation, Apr 2009)
The tax-related provisions of the economic stimulus provide $24.8 billion in bond authority to states and local governments for school infrastructure through two primary programs: a new Qualified School Construction Bonds program and the expansion of the Qualified Zone Academy Bonds (QZABs) program. Brief descriptions of both programs are provided.

Build America Bonds: An Introduction.
(Dorsey & Whitney LLP, Mar 12, 2009)
General overview of the Build America Bonds, including a description of an innovative feature that allows issuers to receive a direct payment from the U.S. Treasury, and an explanation that these bonds can be used to finance a wide range of projects.

Build America Bonds.
(Miller Canfield, Mar 02, 2009)
This alert provides questions and answers on the major characteristics of Build America Bonds (BABs), a new option for government financing included in the American Recovery and Reinvestment Act. Includes a description of BABs, who can issue them and what can be financed, whether or not BABs are exempt from state taxation and authorized under state law, and remaining issues to be clarified.

The Bond Buyer's Guide to the American Recovery and Reinvestment Act. Stimulus 2009. Maximizing the Opportunity. Adobe PDF
(The Bond Buyer, Mar 2009)
A variety of voices from the legal, regulatory, and issuer communities offer ideas, guidance, and caution about new tools available in the American Recovery and Reinvestment Act of 2009, including the expanded qualified zone academy bonds and the new qualified school construction bonds. 16p.

Municipal Bond Provisions in the 2009 Stimulus Act. Adobe PDF
(Womble Carlyle, Feb 23, 2009)
Describes provisions regarding municipal bonds in the American Recovery and Reinvestment Act of 2009, including a good explanation of the new category of tax credit bonds called "Qualified School Construction Bonds." 4p.

Issue Brief: Taxable Tax-Credit Bonds Program. Adobe PDF
(Government Finance Officers Association, Feb 20, 2009)
Provides clear summaries of expanded tax credit bond programs available to state and local governments in the American Recovery and Reinvestment Tax Act of 2009, including Qualified School Academy Zones (QZABs) and Qualified School Construction Bonds.

Public Finance Provisions of the Economic Stimulus Act Enacted February 17, 2009.
(Squire Sanders Public Finance Alert, Feb 17, 2009)
Summarizes provisions of the Stimulus Act that authorize and expand existing authority for state and local government tax-exempt and tax credit bonds, and provisions intended to stimulate market demand for these bonds. In an accompanying table, there is a detailed analysis of the general requirements and national limitations of the new Qualified School Construction Bonds.

Summary of Municipal Bond Provisions in the American Recovery and Reinvestment Act.
(Holland+Knight, Feb 05, 2009)
This summarizes new tax-credit bond programs, including Qualified School Construction Bonds that will provide the bondholders/investors with a tax credit in lieu of their receiving interest, resulting in an interest-free or very low-interest loan to the state or local government issuing the obligation, and the expansion of the Qualified Zone Academy Bond program.

Legislation: American Recovery and Reinvestment Tax Act of 2009. Tax Credit Bonds for Schools.
(U.S. Deparment of Education, Feb 2009)
Text from the American Recovery and Reinvestment Act of 2009, passed on February 13, 2009, concerning Tax Credit Bonds for Schools. This includes Qualified School Construction Bonds and the Extension and Expansion of Qualified Zone Academy Bonds.

Green Building Initiative: K-12 and Higher Education.
(Green Building Initiative , 2009)
The American Recovery and Reinvestment Act of 2009 has provided unprecedented levels of federal funding for education and a unique opportunity for schools and school districts to make investments that will produce long-term sustainability impacts. Schools built or remodeled with a recognized green building rating system like Green Globes, can save money on utility bills and improve indoor air quality - not to mention lessen the building's environmental footprint.

Tax Credit Bonds: A Brief Explanation.
Maguire, Steven
(Congressional Research Service, Aug 20, 2008)
Tax Credit Bonds (TCBs) are a type of bond that offers the holder a federal tax credit instead of interest. This report explains the tax credit mechanism and describes the market for the bonds. Currently, there are four types of TCBs: qualified zone academy bonds (QZABs), clean renewable energy bonds (CREBs), gulf tax credit bonds (GTCBs), and forestry conservation bonds (FCBs). QZABs, which were the first tax credit bonds, were introduced as part of the Taxpayer Relief Act of 1997 (P.L. 105-34) and were first available in 1998.

Qualified Zone Academy Bonds; Obligations of States and Political Subdivisions. Internal Revenue Bulletin: 2007-35.
(Internal Revenue Service, U.S. Department of the Treasury. , Aug 27, 2007)
This document contains final and temporary regulations that provide guidance to state and local governments that issue qualified zone academy bonds and to banks, insurance companies, and other taxpayers that hold those bonds on the program requirements for qualified zone academy bonds. Includes an explanation of provisions and special analyses.

Tax-Credit Bonds and the Federal Cost of Financing Public Expenditures. Adobe PDF
Pinkston, Elizabeth; Zimmerman, Dennis
(Congressional Budget Office, Jul 2004)
This report explains tax-credit bonds including the Qualified Zone Academy Bond, who might issue tax-credit bonds, compares federal financing costs for tax-credit bonds and appropriations, and compares federal costs for alternative approaches to state and local government borrowing. 14p.

School Facilities Infrastructure: Background and Legislative Proposals.
Boren, Susan
(Congressional Research Service , Aug 28, 2003)
Summarizes the federal government's role in direct and indirect financing of school construction and renovation, which continues to be an issue in Congress. Also discussed are recent upward revisions in the federal government's estimates of school construction needs, the general age of schools, enrollment projections, and recent legislative action. 6p.

Early Returns: Tax Credit Bonds and School Construction. Adobe PDF
Mead, Sara
(Progressive Policy Institute, Washington, DC , Sep 2002)
A small federal program piloting tax credit bonds to support school construction, the Qualified Zone Academy Bond (QZAB), has existed since 1997--providing evidence of how tax credit bonds could work. This paper analyzes the results of QZABs to date. The report concludes that, in the absence of more substantial federal assistance, QZABs play an important role in helping needy districts build and maintain school facilities, even though they are not the most effective long-term solution to the problem. The report recommends that the QZAB program, with some modifications, be continued while encouraging Congress to enact a more robust, durable school construction program focused on flexible and accessible initiatives. For example, state infrastructure banks, a promising remedy to the core problem of capital access for public schools, should be explored to replace current tax credit bond programs. 10p.

Funding School Renovation: Qualified Zone Academy Bonds vs. Traditional Tax- Exempt Bonds.
(Library of Congress, Congressional Research Service, Washington , Jul 25, 2001)
Outlines the $1.6 billion Qualified Zone Academy Bond (QZAB) program and provides estimates of the implicit borrower subsidy and the estimated federal revenue loss arising from the tax credits it provides. QZABs are debt instruments that local education agencies sell to finance school renovation and modernization. The interest on these bonds is paid by the federal government through tax credits to the bondholder. The bond-holders are allowed to apply the credits to their federal corporate income tax or alternative minimum tax liability. 6p.

Fixing Our Schools Now! Qualified Zone Academy Bonds: A New Approach to Financing School Renovation and Repair. Adobe PDF
Riley, Richard W.; Frost, Susan ; Brennan-Gac, Patricia
(U.S. Department of Education, Washington, DC , Apr 2000)
This booklet examines the Federal government's Qualified Zone Academy Bonds (QZABs) system for helping school districts carry out needed school renovations and repairs, discusses why QZABs are good ideas for school districts, highlights eligibility criteria, and provides basic funding information along with state allocations for 1998 through 2000. A school deputy superintendent and a financier provide their perspectives on using QZABs, followed by profiles of QZAB programs to illustrate how school around the country are utilizing QZAB funds. Final sections list state contacts where information related to QZAB issues can be found; a list of cities, counties, or other areas that contain Empowerment Zones or Enterprise Communities; and responses to frequently asked questions. 69p.

References to Journal Articles

Funding Building Projects in a Tough Economy
Love, Paula
District Administration; Apr 2012
Outlines sources for hidden funding to help construct and maintain school buildings, including local and state tax revenues, with some limited support from state and small federal initiatives; Local School Construction Bonds and Qualified Zone Academy Bonds; Impact Aid Discretionary Construction Grant Program and the Impact Aid Facilities Maintenance Program; Credit Enhancement for Charter School Facilities Program and the State Charter School Incentive Grants Program; Department of Defense Military Construction Program; State Energy Program Grants; Department of Agriculture Rural Community Facilities Program. Also describes competitive grant funds from federal or state agencies or from private grants awarded by community and corporate foundations.

Information Needed on ARRA School Construction Funds.
Cohen, Jennifer
EdMoney Watch; Sep 20, 2011
Discussion of the Qualified School Construction Bond program, $22 billion in federally subsidized school construction bonds issued under the American Recovery and Reinvestment Act (ARRA).

Addressing the Finance Gap.
Balboni, Elise; Galiatsos, Ann Margaret
Community Developments Investments: Charter School Financing Opportunities; Spring 2011
Discusses the mismatch in the market between the perception and reality of charter schools' creditworthiness for financing purposes. Explores the facilities hurdle, the U.S. Department of Education Credit Enhancement Program, and New Markets Tax Credit funding.

Charter Schools Benefit From New Markets Tax Credit Financing.
Vowell, Laura
Community Developments Investments: Charter School Financing Opportunities; Spring 2011
Discusses the benefits for charter schools to use the New Markets Tax Credit Program, a popular and flexible community development financing tool that allows a charter school to partner with a community development entity in order to receive capital with better rates and terms.

Reincarnation of Rebates. [New Energy Efficiency Programs and Financing Mechanisms Available.]
Audin, Lindsay
Building Operating Management; v57 n12 , p37,38,40,42 ; Dec 2010
Discusses the recent surge in rebates for energy-saving building upgrades. Funds and tax-credits are made available by utilities and governments at all levels. Measurements and documentation to prove savings are addressed. Four recently developed rebate programs, as well as four novel financing strategies are also described.

ARRA Funds Empower Schools to Power Down.
Pascopella, Angela
District Administration; v46 n10 , p34-36,38,39 ; Nov 2010
Describes the use of American Recovery and Reinvestment Act (ARRA) funds in several states to improve school facilities. Kentucky's hiring of 36 energy managers, solar energy projects in Idaho, a wood chip heating system in New Hampshire, and energy-efficient upgrades in Virginia schools are described.

Fixer-Uppers.
Dillon, Naomi
American School Board Journal; v197 n10 , p34-26 ; Oct 2010
Profiles school construction and renovation funding that is available from the federal government. Details and procedures for the Qualified School Construction Bonds (QSCBs), Qualified Zone Academy Bonds (QZABs), and Eddie Tech are described, along with some school districts' experiences with these programs.

Qualified School Construction Bonds: One School District's Experience.
Morstad, Lisa
School Business Affairs; v76 n5 , p18,19 ; Jun 2010
Uses the example of Arkansas' Fayetteville School District to describe how a Qualified School Construction Bond was used to renovate a high school, even though the voters rejected an increased millage to pay for a new facility.

HIRE Act Allows Issuers of Certain Tax Credit Bonds to Receive Direct Payment from the Federal Government.
Lexology; Mar 22, 2010
Describes law passed by Congress to unclog the markets for Qualified School Construction Bonds (QSCBs), Qualified Zone Academy Bonds (QZABs), Qualified Energy Conservation Bonds (QECBs) and New Clean Renewable Energy Bonds (NCREBs). For such bonds issued after December 31, 2009, the issuer can elect to receive a direct subsidy from the federal government in lieu of the tax credit otherwise available to bondholders. For QSCBs and QZABs, the federal payments are 100 percent of the lesser of the interest payments on the bonds or the otherwise available tax credits. For QECBs and NCREBs, the federal payments are 70 percent of the lesser of the interest payments on the bonds or the otherwise available tax credits.

New Ways for School Districts to Issue Bonds under the Recovery Act.
Cowburn, Laura; Phillips, Kenneth; Unkovic, David
School Business Affairs; v76 n2 , p14,15 ; Mar 2010
Describes various federal bond programs favorable to school construction. Build America Bonds and Qualified School Construction Bonds are addressed.

Stimulus Response.
Kennedy, Mike
American School and University; v82 n7 , p16-18,20-23 ; Mar 2010
Discusses distribution of American Recovery and Reinvestment Act funds through the educational community, describing how some building programs have been enabled by grants and various low- or no-interest bond programs.

Qualified School Construction Bonds (QSCBs.) Adobe PDF
Moore, Kathleen
Cash Register; , p5. ; Mar 2010
Author describes how California will benefit from a new state law that clarifies that the California Department of Education and the California School Finance Authority, under the Office of the State Treasurer, are authorized to allocate federal Qualified School Construction Bond tax credits to local educational agencies (LEAs) and Charter schools, respectively.

What’s Happening with ARRA’s Qualified School Construction Bonds
Cohen, Jennifer
Ed Money Watch; Jan 21, 2010
The Qualified School Construction Bond program has hit up against some major snags with detrimental effects for schools and districts that were allowed to issue the bonds but are having trouble finding buyers for the bonds.

Proposed Direct Subsidy Payments for QSCB and QZAB Programs. Adobe PDF
Lexology; Jan 12, 2010
This describes how the proposed Jobs Act passed by the U.S. House of Representatives in December, 2009 would expand the Qualified School Construction Bond and Qualified Zone Academy Bond programs in 2010. The Jobs Act would permit school districts with QSCB or QZAB allocations to issue taxable bonds and receive direct payment subsidies from the federal government similar to the direct payment subsidies received by political subdivisions issuing Build America Bonds.

Facilities Funding Thaws.
Roger Bruszewski; Jung, Sam; Turner, Jeffrey
Business OFficer; Jan 2010
Discusses the trend toward public-private partnerships in higher education construction. Privatized housing is highlighted, as are benefits of federal stimulus funds and the tight bond market. Examples of seven creatively funded capital projects are described.

Ten Stimulating Ideas.
Kennedy, Mike
American School and University; v82 n4 , p16,18,20,21 ; Dec 2009
Briefly describes ten facilities-oriented benefits that can be executed with funds from the American Recovery and Reinvestment Act, as well as ongoing bond support and grant programs. This article presents 10 federal stimulus programs that offer education institutions an opportunity to upgrade their infrastructure and stimulate the economy: (1) Qualified School Construction Bonds; (2) Build America Bonds; (3) Bureau of Indian Affairs; (4) National Institute of Standards and Technology (NIST); (5) Race to the Top; (6) Research Facilities; (7) Qualified Zone Academy Bonds; (8) Lunch Program Equipment; (9) Qualified Energy Conservation Bonds; and (10) Rural Community Facilities Program.

The Hot Iron. [Saving Money on School Construction.]
Sack-Min, Joetta
American School Board Journal; v196 n10 , p34-36 ; Oct 2009
Discusses current opportunities for renovating schools, emphasizing funds available from the American Recovery and Reinvestment Act of 2009, and use of funds to make school buildings more healthy and energy-efficient. Various federal bond programs are also discussed.
TO ORDER: American School Board Journal, 1680 Duke Street, Alexandria, VA 22314; Tel: 703-838-6722
http://www.asbj.com

Opportunity and Danger: The Two Sides of the American Recovery and Investment Act.
Warner, Carolyn
School Business Affairs; v75 n8 , p8,10,12 ; Sep 2009
Presents cautionary advice for school districts receiving funds from the American Recovery and Investment Act of 2009. Careful listening to stakeholders, planning, cautious use of the funds, and thorough documentation are discussed. This is followed by a list four major caveats and advice on the partnership between school business officials and the federal government.

Stimulus Offers Funding Support for Ed. Facilities.
Ash, Katie
Education Week; v28 n29 , p1,14,15 ; Apr 2009
Reviews potential sources of school facilities improvement funds in the American Recovery and Reinvestment Act of 2009. School facilities needs will have to compete with a variety of other interests seeking funding from state stabilization dollars. Bonding assistance and grants to achieve energy efficiency are also discussed.

School Facilities and Tax Credit Bonds. Adobe PDF
Edelstein, Frederick
Educational Facility Planner; v43 n4 , p14,15 ; 2009
Describes the federal government’s Qualified School Construction Bonds, Qualified Zone Academy Bonds, and Build America Bonds. Details of amounts available, eligibility, and links to application instructions are included.

Getting a Piece of the Pie: Schools Need to Be Proactive, Flexible When Pursuing Stimulus Funding. Adobe PDF
Turckes, Steven
Educational Facility Planner; v43 n4 , p12-15 ; 2009
Outlines how funds from the American Reinvestment and Recovery Act (ARRA) of 2009 may be made available for school facility needs in states that choose to direct them there. Examples of school facility needs in a number of districts that do and do not anticipate receiving federal funds for school facilities are included. Two types of tax credit bonds are also described, as are steps school districts should take toward receiving funding.

Cut the Cost of Borrowing with Zero-Interest Federal QZAB Funds.
Peters, Laurence
School Business Affairs; v74 n11 , p23,24 ; Dec 2008
Explains how the U.S. Government's Qualified Zone Academy Bond (QZAB) loans work, who qualifies, how they are obtained, and what the money may be used for.

New QZAB Rule Would Clarify Steps to Correct Proper Use.
Barnett, Susan Duff
The Bond Buyer; , p5 ; Mar 26, 2004
Discusses changes proposed by the Treasury Department to the qualified zone academy program that would clarify what an issuer must do to protect the tax credit status of its bonds when it has failed to use them for a proper purpose.
TO ORDER: http://www.bondbuyer.com

Tax-Exempt Bonds: The Secret to Low-Cost Financing.
Carlucci, Joseph P.; Schneider, Robert C.
School Business Affairs; v69 n11 , p19-23 ; Dec 2003
Describes the use of tax-exempt bond financing for private schools that is particularly successful when combined with a traditional capital campaign. Such bonds are successful due to their flexible terms and attractive interest rates. Examples of successes and mistakes in the process are provided.

Modern Schools in the 21st Century. Local, State, and Federal Responsibility.
Canavan, Robert
The State Education Standard; v4 n1 , p24-28 ; Winter 2003
Cites the daunting need for school construction and repair funds. Explains how the federal Qualified Zone Academy Bonds and the America’s Better Classrooms Act allow certain schools to finance the renovating and/or equipping of school facilities on an interest-free basis through the allocation of federal tax credits. Tables list the state allocations for each award.
TO ORDER: NASBE, 2121 Crystal Drive Suite #350, Arlington, VA 22202; Tel: 703-684-4000; Email: publications@nasbe.
http://nasbe.org/

Law Gives Charter Schools Access to Tax-Exempt Bonds.
Howard, Mark
School Reform News [Heartland Institute]; Apr 2002
A change to federal law permits local school districts and charter schools to enter into public-private partnerships to take advantage of tax-exempt bonds for developing new school facilities as well as renovating, refurbishing, and equipping existing ones. This article includes definitions of a qualified public educational facility, public-private partnership agreement, and a school facility.

Putting School Renovation on a Fast Track.
Sawicky, Max; Harris, Doug
Economic Policy Institute Issue Brief; v167 , 3p. ; Dec 02, 2001
The authors recommend increasing federal funding for emergency school repairs and expanding tax credits on school construction bonds(QZABs). Both programs are targeted to areas most in need of better school buildings, and both programs have significant backlogs of potential projects waiting for additional funds. Expanded funding for these programs would provide a quick stimulus to the economy, while providing a long-term investment in education.

Financing School Infrastructure: What Are the Options?
Sielke, Catherine C.
School Business Affairs; v67 n12 , p12-15 ; Dec 2001
Describes local, state, and federal school infrastructure funding options. Local funding options include bond issues, special local-option sales taxes, and voter-approved mills and sinking funds. Describes use of federal Qualified Zone Academy Bonds.

The ABC-Ds of Capital Financing. How Tax-Exempt Bonds Can Make Debt Work in Schools' Favor.
Procknow, Charles E.
Independent School Magazine; Fall 2001
Discussion of how independent schools are using tax-exempt bonds as a long-term stable means of funding capital projects. Advises on how to establish financing goals and how to choose partners.

Qualified Zone Academy Bonds: A Financing Tool That Works for Schools
Musso, John D.
School Business Affairs; v67 n9 , 69-70 ; Sep 2001
Describes the origin and purpose of Qualified Zone Academy Bonds (QZAB) and how they work. QZABs were the outgrowth of the Taxpayer Relief Act of 1997 that allowed school districts to borrow money, without paying interest, to fund such educational improvement projects as building renovation, new equipment purchases, and staff development.

QZABs: An Underutilized Resource for Renovating Poor Schools.
School Board News; Feb 22, 2000
About 100 school districts nationwide are renovating schools with federal assistance through Qualified Zone Academy Bonds (QZABs), but many others have not taken advantage of this program because they don't know about it. Twenty states haven't even implemented the program and will lose their allocations if school districts don't apply before the program expires.

Simpler School Financing with Qualified Zone Academy Bonds.
Kimmel, Thomas
Government Finance Review; Jun 1998
The author describes two key features of the QZAB bond program that reflect an emerging trend in federal tax policy for school financing. First, the program requires a public-private partnership with a commitment of substantial contributions from the business community. Second, the program relies on tax credits as an incentive for investment rather than the traditional incentives of permitting tax-exempt earnings for the investors.


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