Outlines the $1.6 billion Qualified Zone Academy Bond (QZAB) program and provides estimates of the implicit borrower subsidy and the estimated federal revenue loss arising from the tax credits it provides. QZABs are debt instruments that local education agencies sell to finance school renovation and modernization. The interest on these bonds is paid by the federal government through tax credits to the bondholder. The bond-holders are allowed to apply the credits to their federal corporate income tax or alternative minimum tax liability.
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