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
Legislation
- QZAB authorization
- QZAB extension and modifications
  1. Emergency Economic Stabilization Act of 2008 (PDF)
  2. American Recovery and Reinvestment Act of 2009 (PDF) – see page 244

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