### Question
Can you define what qualified zone academy bond means?


### Answer
**Qualified zone academy bond** is defined as the following in *26 U.S.C. § 54E*:

> any bond issued as part of an issue if—



(1) 100 percent of the available project proceeds of such issue are to be used for a qualified purpose with respect to a qualified zone academy established by an eligible local education agency,



(2) the bond is issued by a State or local government within the jurisdiction of which such academy is located, and



(3) the issuer—



(A) designates such bond for purposes of this section,



(B) certifies that it has written assurances that the private business contribution requirement of subsection (b) will be met with respect to such academy, and



(C) certifies that it has the written approval of the eligible local education agency for such bond issuance

#### Citation:
  - *26 U.S.C. § 54E*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart I-Qualified Tax Credit Bonds**

