The 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 $105.8 million dollars.
The Secretary of Education makes all allocations of QZAB bonds to school divisions.
- Virginia Award Guidelines (PDF)
- History of Virginia QZAB Awards (PDF)
- QZAB Information
- Examples of Uses for QZAB Funds – USED
- Federal Empowerment Zone Information – USDA