|Qualified Zone Academy Bonds
||Local Government Bond
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Description of Fund
The Qualified Zone Academy Bond (QZAB) Program allows school districts to borrow funds interest free for education purposes, except for new construction. To qualify for funding, the funds must be used for a school located in an "enterprise community" or an "empowerment zone," or with 35 percent of their students eligible for free or reduced-cost lunches under the National School Lunch Act. In addition, a qualified school must have a partnership with a business that contributes at least 10 percent of the amount borrowed. Under the program, the school district pays the amount initially borrowed and the federal government gives the purchaser of the bonds a tax credit in lieu of interest payments.
Who is eligible?
School buildings in enterprise or empowerment zones or who have 35% of their students eligible for free or reduced price meals. The bonds must be issued by a local government; as such, community schools and independent STEM schools are not eligible to apply for the this bonding authority. However, if a local government is willing and has the authority, it may issue bonds on behalf of a community school or independent STEM school.
Ohio was allocated $14,651,000 for calendar year 2008 (bonds issued after Oct. 3, 2008) and $51,280,000 in calendar year 2009 (bonds issued after Jan. 1, 2009). The state can carry forward any unused portion of the allocation for two years. Currently, there is $14,042,649 in unused carryover from calendar year 2007 that will be available until 12/31/2009. Applications and more detailed information is currently available on the ODE Web site; search for “QZAB”.
Guidance and Uses of Funds
Allocations / Awards
- Once determined, a list of awardees will be inserted here.
Frequently Asked Questions (FAQ)
- Frequently Asked Questions for the Qualified Zone Academy Bonds are in development.
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