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What changes did the HIRE Act make to Qualified School Construction Bonds?

April 26, 2017ACT bonds changes Construction hire qualified School

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What changes did the HIRE Act make to Qualified School Construction Bonds?

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• The HIRE Act permits school districts to issue Qualified School Construction Bonds as either (a) tax-credit bonds or (b) taxable bonds with direct-payment subsidies from the federal government. Such direct-payment subsidies are similar to the direct-payment subsidies received by political subdivisions issuing Build America Bonds. What are Qualified School Construction Bonds? • Qualified School Construction Bonds may be issued as tax-credit bonds or taxable direct payment bonds, similar to Build America Bonds. 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 co