POLICY (Bond Programs)
The American Recovery and Reinvestment Act of 2009 (ARRA) provided PK-12 public school districts various bond opportunities for construction, repair and renovation of their school facilities:
Qualified School Construction Bonds
ARRA made available $22 billion in Qualified School Construction Bonds. State and local governments had the opportunity to acquire interest free bonds for the construction, rehabilitation, or repair of public school facilities or for the acquisition of land for a school to be constructed.
Qualified Zone Academy Bonds
$2.8 billion was made available for states and school districts to rehabilitate or repair public school facilities. The limit for QZAB nationally was increased to $1.4 billion in 2009 and $1.4 billion in 2010. Qualified Zone Academy Bonds have continued after ARRA expired.
Build America Bonds
A new type of low interest municipal bond, Build America Bonds, created from the American Recovery and Reinvestment Act allowed states and school districts to finance construction and modernization of public schools.
Build America Bonds allowed state and local governments to issue an unlimited amount of taxable debt through the end of 2010. Issuers could have either received a direct payment from the Treasury Department of 35 percent of the interest paid on the bonds or could have provided bondholders with a tax credit equal to 35 percent of the coupon that could have been applied against federal income tax liability.
Qualified School Construction Bonds for Indian Schools
$400 million in tax-exempt bonds were made available to Indian tribal governments for the construction, rehabilitation, and repair of schools.