rp-01-14.pdf

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Part III
Administrative, Procedural, and Miscellaneous
26 CFR 601.601: Rules and regulations.
(Also Part I, ' 1397E)
Rev. Proc. 2001-14
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 2001.
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 section 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 section 1397E(d)(5), with respect to a
qualified zone academy, as defined by section 1397E(d)(4).
.02 Section 1397E(e)(1), as amended by section 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

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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 each State to qualified zone academies
within the State or possession.
.03 Section 1397E(e)(4), as amended, by section 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 firstnin firstnout basis.
.04 Rev. Proc. 98-9, 1998-3 I.R.B. 56, Rev. Proc. 98-57, 1998-48 I.R.B. 5, and
Rev. Proc. 2000-10, 2000-2 I.R.B. 287, respectively, allocated the national limitation for
1998,1999, and 2000 among the States and possessions.
SECTION 3. SCOPE
This revenue procedure applies to Bonds issued under section 1397E during
2001.
SECTION 4. NATIONAL QUALIFIED ZONE ACADEMY BOND LIMITATION FOR 2001
The total face amount of bonds that may be issued in 2001 is $400 million. This
amount is allocated among the States as follows:
STATE
MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE
ISSUED DURING 2001
(thousands of dollars)
ALABAMA$ 7,641

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ALASKA 545
ARIZONA 6,640
ARKANSAS
4,343
CALIFORNIA52,969
COLORADO
3,899
CONNECTICUT
2,699
DELAWARE
908
DISTRICT OF COLUMBIA
896
FLORIDA
21,699
GEORGIA
11,635
HAWAII
1,496
IDAHO
2,015
ILLINOIS
13,905
INDIANA
4,611
STATE
MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE
ISSUED DURING 2001
(thousands of dollars)

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KANSAS3,750
KENTUCKY
5,550
LOUISIANA
9,721
MAINE
1,538
MARYLAND
4,372
MASSACHUSETTS
$ 8,367
MICHIGAN
11,080
MINNESOTA
3,982
MISSISSIPPI
5,162
MISSOURI
7,346
MONTANA
1,595
NEBRASKA
2,103
NEVADA
2,368
NEW HAMPSHIRE
1,071
NEW JERSEY
7,356
NEW MEXICO
4,171

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NEW YORK
29,712
NORTH CAROLINA
11,961
NORTH DAKOTA
954
OHIO
15,643
OKLAHOMA
4,939
OREGON
4,839
PENNSYLVANIA
13,056
RHODE ISLAND
1,136
SOUTH CAROLINA
5,265
STATE
MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE
ISSUED DURING 2001
(thousands of dollars)
SOUTH DAKOTA654
TENNESSEE
7,557
TEXAS
34,818
UTAH
1,406
VERMONT
667

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VIRGINIA
$ 6,288
WASHINGTON
6,333
WEST VIRGINIA
3,285
WISCONSIN
5,229
WYOMING
644
AMERICAN SAMOA
350
GUAM
251
NORTHERN MARIANAS
408
PUERTO RICO
26,308
VIRGIN ISLANDS
372
SECTION 6. EFFECTIVE DATE
This revenue procedure applies to Bonds issued after December 31, 2000.
DRAFTING INFORMATION
The principal author of this revenue procedure is David White of the Office of
Assistant Chief Counsel (Tax Exempt/Employment Tax/Government Entities). For
further information regarding this revenue procedure contact Mr. White on(202)622-
3980 (not a /toll free call).