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Tax Credit Consulting: Qualified Zone Tax Credit Bonds Winston Salem NC

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
(336) 722-1043
1485 NEW WALKERTOWN RD
WINSTON SALEM, NC

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Taxaco
(336) 661-1770
3507 NE Patterson Ave
Winston Salem, NC

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Liberty Tax Service
(866) 871-1040
1111 Silas Creek Pkwy
Winston Salem, NC

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Parker Tax Service
(336) 784-4160
2798 Friedland Church Rd
Winston Salem, NC

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Jackson Hewitt
(336) 289-5977
4472 Wallburg Landing Drive
Winston Salem, NC

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Liberty Tax Service
(866) 871-1040
3601 N Patterson Ave
Winston Salem, NC

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Jackson Hewitt
(336) 724-1242
1081 Silas Creek PKWY
Winston-Salem, NC

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H&R Block
(336) 784-9383
3541 pkwyVILLAGE circle
WINSTON SALEM, NC

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Phipps, Mack W CPA PA
(336) 659-0006
250 Executive Park Blvd Ste 110
Winston Salem, NC

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Jackson Hewitt
(336) 760-1530
313 Jonestown Rd
Winston Salem, NC

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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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