What are the requirements to issue Qualified School Construction Bonds?
• Qualified School Construction Bonds must be issued by the school district within which the public school facility financed is located and designated as Qualified School Construction Bonds. • 100 percent of the “available project proceeds” of the bond issue must be used for construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue. • Proceeds of Qualified School Construction Bonds may be used for costs of acquisition of equipment to be used in the portion of the school facility that is being constructed, rehabilitated, or repaired. How do the direct payment subsidies work? • The school district issuing taxable Qualified School Construction Bonds receives direct payments equal to the lesser of (a) the actual interest rate of the bonds or (b) the tax-credit rate for municipal tax-credit bonds that the school district would have received if it issued the bonds as
