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QZAB may finance facility repairs, new equipment and more
The South Dakota Department of Education
announces that it has $1.8 million in Qualified Zone Academy
Bond (QZAB) authority. Public school districts may apply for up
to $250,000 in QZAB authority for its eligible school(s) during
the current allocation cycle.
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. QZABs may be used at an
eligible school to finance repair of school facilities, purchase
of new equipment, curriculum development, and staff training,
but not for new construction.
The primary eligibility requirement is that a public school must
have a reasonable expectation that at least 35 percent of its
students will be eligible for free or reduced-price lunch under
the National School Lunch Act. The school also must comply with
the other criteria detailed in the QZAB application. Schools
experienced with the QZAB program should note that there are
some changes to the program due to new tax laws enacted in 2006.
If the amount of QZAB requests exceeds the available dollar
amount for the state, applicants will be selected by lottery
with priority given to school districts that have not previously
received a QZAB allocation.
The deadline for submission of the QZAB application is July 2,
2007. Applications received or postmarked after this date will
not be considered during this application cycle. To download an
application, or to learn more about the QZAB program and the
2006 tax law changes, please visit
http://doe.sd.gov/ofm/grants/qzab/index.asp.
For more information, please contact Rob Huffman or Cody Stoeser
at the South Dakota Department of Education, (605) 773-3248.
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