### Question
How is the term qualified zone academy bond defined?


### Answer
The term **qualified zone academy bond** is defined in *26 U.S.C. § 1397E* as the following:

> any bond issued as part of an issue if—


(A) 95 percent or more of the 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,


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


(C) the issuer—


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


(ii) certifies that it has written assurances that the private business contribution requirement of paragraph (2) will be met with respect to such academy, and


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


  

(D) the term of each bond which is part of such issue does not exceed the maximum term permitted under paragraph (3), and


(E) the issue meets the requirements of subsections (f), (g), and (h)

#### Citation:
  - *26 U.S.C. § 1397E*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter U-Designation and Treatment of Empowerment Zones, Enterprise Communities, and Rural Development Investment Areas > PART IV-INCENTIVES FOR EDUCATION ZONES**

