Business Tax Recovery Logo


Tax Credit Consulting: Qualified Zone Tax Credit Bonds Cody WY

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
(307) 532-5413
2109 MAIN ST
TORRINGTON, WY

Data Provided by:
H&R Block
(307) 635-3657
800 S GREELEY hwy STE E
CHEYENNE, WY

Data Provided by:
Liberty Tax Service
(866) 871-1040
944 E 2nd St
Casper, WY

Data Provided by:
Liberty Tax Service
(866) 871-1040
324 E Washington Ave
Riverton, WY

Data Provided by:
H&R Block
(307) 877-5789
1100 PINE AveSTE 113
KEMMERER, WY

Data Provided by:
Payless Tax & Business Solutions
(307) 655-5543
307 E 3rd Street
Sheridan, WY
Prices and/or Promotions
20% off Your First Tax Return

Liberty Tax Service
(866) 871-1040
2205 E Pershing Blvd
Cheyenne, WY

Data Provided by:
H&R Block
(307) 362-6101
1461 DEWAR dr
ROCK SPRINGS, WY

Data Provided by:
Liberty Tax Service
(866) 871-1040
1802 Dell Range Blvd
Cheyenne, WY

Data Provided by:
H&R Block
(307) 684-5125
510 W LOTT ST STE A
BUFFALO, WY

Data Provided by:
Data Provided by:

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...

Click here to read the rest of this article from BusinessTaxRecovery.com