QZAB applications now available

Applications for authority to issue Qualified Zone Academy Bonds (QZABs) are now available. South Dakota will make approximately $2.4 million in QZAB authority available to school districts.

QZABs are bonds the federal government subsidizes by providing tax credits in lieu of cash interest payments to bondholders. As a result, school districts are generally responsible for repayment of just the principal. These bonds may be used at an eligible school to finance rehabilitating or repairing school facilities, purchasing equipment, developing curricula, and training school personnel, but not for new construction. 

The primary eligibility requirement is that a school has a reasonable expectation that at least 35 percent of its students are eligible for the free or reduced school lunch program. 

Additional information, including an application, can be downloaded at  www.state.sd.us/deca/Grants/QZAB/index.htm. The deadline to submit an application is March 4.

If you have any questions about the QZAB program, please contact Rob Huffman at (605) 773-4600. robyn.huffman@state.sd.us

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