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Tax Credit Consulting: Qualified Zone Tax Credit Bonds Barre VT

The interest rate on the Bonds is established daily by the Treasury Department. The Companies that receive the bonds receive their interest in the form of a tax credit that may be claimed on IRS Form 8860.

H&R Block
(802) 479-9100
TWIN CENTER PLAZA SHOPPING CENTER 1284 RTE 302
BERLIN, VT

Data Provided by:
Harton & Associates Robert & Jeff
(802) 878-4458
57 River Rd
Essex Junction, VT
 
H&R Block
(802) 388-3190
260 Court ST
Middlebury, VT
 
Guinness Tax Service
(802) 658-2132
34 Patchen Rd
South Burlington, VT
 
Kupiec Al & Associates
(802) 879-1509
58 Pearl St
Essex Junction, VT
 
Associates In Accounting
(802) 878-9619
6 Pinecrest Dr
Essex Junction, VT
 
Liberty Tax Service
(866) 871-1040
1197 Williston Rd
South Burlington, VT

Data Provided by:
Independent Tax Service Inc
(802) 863-2271
Chace Ml
Burlington, VT
 
Lachance Susan CPA PC
(802) 878-7677
45 Logwood Cir
Essex Junction, VT
 
H&R Block
(802) 863-9999
155 DORSET ST
SOUTH BURLINGTON, VT

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Tax Credit Consulting: Qualified Zone Tax Credit Bonds

Qualified Zone Tax Credit Bonds

Qualified Zone Tax Credit Bonds are a special type of tax credit available to banks, insurance companies, and other corporations actively engaged in lending money.

The Qualified Zone Tax Credit Bonds are also called Qualified Zone Academy Bonds, or QZABs. The credit was authorized by various pieces of tax legislation. The last one was the Working Families Tax Relief Act of 2004 which extended the program through 2005 with December 31, 2007 as the last day to issue bonds authorized in 2005. Qualified Zone Tax Credit Bonds are geared toward helping to provide financing for schools in low income areas.

The Government begins the program cycle by allocating around $400 million dollars in bonding authorization to the various States. This bonding allocation is determined based on the number of people in the State that are at the poverty level. The poorest States get the most allocation. Next, the State through its various qualified school districts issues bonds that may be purchased by Banks, Insurance Companies, or Corporations that engage actively in the business of lending money.

The interest rate on the Bonds is established daily by the Treasury Department. The Companies that receive the bonds receive their interest in the form of a tax credit that may be claimed on IRS Form 8860. The school districts that issue the bonds are not involved in the tax credit, of course, so the actual way of viewing their advantage is to understand that the Qualified Zone Academy Bonds are interest free bonds to the issuer.

The purchaser of the bonds receives interest, however. The interest is received in the form of the tax credit that may be taken directly off the taxes owed. The one disadvantage to the Qualified Zone Academy Bonds is that the benefit has no carry over and carry back provisions. The credit must be taken during the year it applies to or it is lost. This is not too much of a deterrent to most large lending institutions that wi...

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