n-99-35.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

Part III - Administrative, Procedural, and Miscellaneous
Qualified Zone Academy Bond Credit Rate
Notice 99 -35
Section 1397E(b)(2) of the Internal Revenue Code provides that the Secretary shall
determine a credit rate that the Secretary estimates will permit the issuance of a qualified zone
academy bond without discount and without interest cost to the issuer. Temporary regulations
interpreting § 1397E(b)(2) were published on January 7, 1998, as T.D. 8755 (63 Fed. Reg. 671)
1998-10 I.R.B. 21. The Treasury and IRS are issuing temporary regulations that revise T.D.
8755 to provide that guidance for ascertaining the credit rate will be set forth in procedures,
notices, forms, and instructions as prescribed by the Commissioner.
The Secretary has determined that, until further notice, the credit rate for a qualified zone
academy bond is the qualified zone academy bond credit rate published daily by the Bureau of
Public Debt on its Internet site for State and Local Government Bonds at:
. The qualified zone academy bond credit rate shall be applied
to a qualified zone academy bond on the first day on which there is a binding contract in writing
for the sale or exchange of the bond. The credit rate will be determined by the Department of the
Treasury based on its estimate of the yield on outstanding AA rated corporate bonds of a similar
maturity for the business day immediately prior to the date on which there is a binding contract in
writing for the sale or exchange of the bond.
The principal author of this notice is Timothy L. Jones of the Office of Financial
Institutions and Products. For further information regarding this notice, call (202) 622-3980 (not
a toll-free number).