rp-00-10.pdf

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# Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.601:

Rules

and

regulations.

(Also Part I, § 1397E)

## Rev. Proc. 2000-10

### SECTION 1. PURPOSE

This revenue procedure sets forth the maximum face amount of
Qualified Zone Academy Bonds ("Bond" or "Bonds") that may be
issued for each State during 2000. For this purpose "State"
includes the District of Columbia and the possessions of the
United States.

### SECTION 2. BACKGROUND

. 01 Section 226 of the Taxpayer Relief Act of 1997, Pub. L.
105-34, 111 Stat. 821 (1997), added § 1397E to the Internal
Revenue Code to provide a credit to holders of Bonds under
certain circumstances so that the Bonds generally can be issued
without discount or interest. Ninety-five percent of Bond
proceeds are to be used for qualified purposes, as defined by §
1397E (d) (5), with respect to a qualified zone academy, as defined

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by § 1397E (d) (4) .

. 02 Section 1397E (e) (1), as amended by $ 509 of the Tax
Relief Extension Act of 1999, Pub. L. 106-170, 113 Stat. 1860
(1999) provides that the aggregate amount of Bonds that may be
issued for the States is limited to $400 million for each of the
years, 1998, 1999, 2000, and 2001 (the "national limitation") .
This amount is to be allocated among the States by the Secretary
on the basis of their respective populations below the poverty
level (as defined by the Office of Management and Budget) and is
to be further allocated by the State to qualified zone academies
within the State or possession.

. 03 Section 1397E (e) (4), as amended, by $ 509 of the Tax
Relief Extension Act of 1999, Pub. L. 106-170, 113 Stat. 1860
(1999) provides that any carryforward of a limitation amount may
be carried only to the first 2 years (3 years for carryforwards
from 1998 or 1999) following the unused limitation year. For
this purpose a limitation amount shall be treated as used on a
first-in first-out basis.

. 04 Rev. Proc. 98-9, 1998-3 I.R.B. 56, and Rev. Proc.
98-57, 1998-48 I.R.B. 5, respectively, allocated the national
limitation for 1998 and 1999 among the States and possessions.
SECTION 3. SCOPE

This revenue procedure applies to Bonds issued under § 1397E
during 2000.

SECTION 4. NATIONAL QUALIFIED ZONE ACADEMY BOND LIMITATION FOR
2000

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The total face amount of bonds that may be issued in 2000 is
$400 million. This amount is allocated among the States as
follows :

MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE

STATE

ISSUED DURING 2000

(thousands of dollars)

ALABAMA

$ 6,612

ALASKA

651

ARIZONA

8,816

ARKANSAS

4,093

CALIFORNIA

55,570

COLORADO

3,941

CONNECTICUT

3,366

DELAWARE

869

DISTRICT OF COLUMBIA

1,238

FLORIDA

20,879

GEORGIA

11,227

HAWAII

1,422

IDAHO

1,792

ILLINOIS

13,398

INDIANA

5,939

IOWA

2,790

KANSAS

2,714

KENTUCKY

5,657

LOUISIANA

8,914

MAINE

1,422

MARYLAND

3,898

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MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE
ISSUED DURING 1999

STATE

(thousands of dollars)

MASSACHUSETTS

$ 5,733

MICHIGAN

11,911

MINNESOTA

5,407

MISSISSIPPI

5,277

MISSOURI

5,765

MONTANA

1,661

NEBRASKA

2,291

NEVADA

2,117

NEW HAMPSHIRE

1,292

NEW JERSEY

7,524

NEW MEXICO

4,028

NEW YORK

33,311

NORTH CAROLINA

11,281

NORTH DAKOTA

1,053

OHIO

13,605

OKLAHOMA

4,973

OREGON

5,461

PENNSYLVANIA

14,528

RHODE ISLAND

1,216

SOUTH CAROLINA

5,722

SOUTH DAKOTA

836

TENNESSEE

8,132

TEXAS

32,508

UTAH

2,063

VERMONT

630

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MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE
ISSUED DURING 1999

STATE

(thousands of dollars)

VIRGINIA

$ 6,395

WASHINGTON

5,559

WEST VIRGINIA

3,388

WISCONSIN

4,875

WYOMING

554

AMERICAN SAMOA

389

GUAM

229

NORTHERN MARIANAS

360

PUERTO RICO

24,378

VIRGIN ISLANDS

337

### SECTION 6. EFFECTIVE DATE

This revenue procedure applies to Bonds issued after
December 31, 1999.

#### DRAFTING INFORMATION

The principal author of this revenue procedure is Allan
Seller of the Office of Assistant Chief Counsel (Financial
Institutions & Products) . For further information regarding this
revenue procedure contact Mr. Seller on (202) 622-3980 (not a
toll free call) .