Note: Sections 54A and 54F of the Internal Revenue Code (IRC) as well as the U.S. Treasury notice 2009-35 should answer all QSCB-related questions.
Below, please find the specific questions many of the State QZAB/Facilities Directors sent us and answers. Hope this is helpful.
1. Do you have any information about the need to comply with the Davis-Bacon
Act when using these new bonds? Where specifically does it state
that the Davis Bacon Act applies? Davis Bacon Act applies to both QSCB
2. What is the State Department of Education’s role in the allocation
that is specifically for the large 100 LEAs receiving direct allocation?
Does the Department have to keep track of how much of the allocations
that these four districts utilize?
3. Am I correct that the QSCB’s must be issued (sold) on or before
December 31, 2009?
4. If the state law states that no allocations for QSCBs can be authorized
until after July 1, 2009 due to the state requirement that program authority
be in statute first. Is this an issue?
5. Are charter schools eligible to apply directly for the QSCB program,
or must they go through the district / LEA?
6. The top 100 allocations were made at the district level. Is
the intent that states also make their allocations at the district level?
7. For the purposes of issuance / eligibility would the “local
government” be defined as the school board?
8. Are there QSCB reporting requirements for the states?
9. What role do the states play in the 100 LEAs receiving direct allocation?
10. A definition of allowable equipment purchases is needed. What
is allowable here? Not allowable?
11. The legislation does not state that these are interest fee bonds.
12. Can districts purchase land for future needs?
13. Are states required to allocate to all districts, or can allocation
be on an as requested basis?
14. What happens to unused allocations to the top 100? Does it
revert to the state or the feds for reallocation?
15. What are the state’s roles regarding the Indian Tribal Government
16. Page 9, top of page. Is this language intended to give the
top 100 the authority to receive an additional allocation from the state?
17. Page 14. Will there be carryforward with the state allocations,
or will this program work like QZAB and the authority revert 1/1/2010?
18. If carryforward to later years is allowable, what will be required
of the states to do so?
19. Are issuance costs allowable, as 100% of the proceeds are to be spent