Qualified Zone Academy Bonds (QZAB)

The Qualified Zone Academy Bonds (QZAB) initiative is a federal program that allows lending institutions and schools to form a mutually beneficial partnership to support education.  QZAB funds can be used for:  a) rehabilitating or repairing eligible public school facilities;  b) providing equipment for use at an academy; c) developing course materials for education to be provided at an academy; or d)  training teachers and other school personnel in an academy.

This program allows a bank or other lending institution to purchase a special no-interest bond on behalf of a school.  The lending institution may then claim the interest they would have earned on that loan as a federal tax credit. 

To date, Virginia has received allocations totaling more than $42 million dollars.  

The Secretary of Education makes all allocations of QZAB bonds to school divisions.  

• Virginia Award Guidelines
• History of Virginia QZAB Awards
• Link for QZAB Information
• Link of Federal Empowerment Zone Information
• IRS Regulations Governing QZABs
  
• Internal Revenue Bulletin
  

[Budget Home] [Finance Home] [VDOE Home]