rp-02-72.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.

1

Part III
Administrative, Procedural, and Miscellaneous

26 CFR 601.601: Rules and regulations.
(Also Part I, § 1397E)

Rev. Proc. 2002-72

SECTION 1. PURPOSE

Pursuant to § 1397E(e)(2) of the Internal Revenue Code,
this revenue procedure allocates among the States the national
limitation for Qualified Zone Academy Bonds (“Bond” or “Bonds”)
for the calendar year 2003. 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 by § 1397E(d)(4).

2

.02 Section 1397E(e)(1), as amended by § 608 of the Job
Creation and Worker Assistance Act of 2002, Pub. L. 107-147, 116
Stat. 21 (2002), provides that the national limitation for Bonds
that may be issued is $400 million for each of the years 1998,
1999, 2000, 2001, 2002, and 2003. 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 each State to qualified zone academies within the
State.
.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 forward 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, 1998-1 C.B. 341, Rev. Proc. 98-57,
1998-2 C.B. 682, Rev. Proc. 2000-10, 2000-1 C.B. 287, Rev. Proc.
2001-14, 2001-1 C.B. 343, and Rev. Proc. 2002-25, 2002-17 I.R.B.
800, allocated among the States the national limitation for
1998, 1999, 2000, 2001, and 2002, respectively.

3
SECTION 3. NATIONAL QUALIFIED ZONE ACADEMY BOND LIMITATION FOR
2003
The 2003 national limitation for Bonds is $400 million.
This amount is allocated among the States as follows:

STATE MAXIMUM FACE AMOUNT OF BONDS
THAT MAY BE ISSUED PURSUANT
TO THE CALENDAR YEAR 2003
LIMITATION (thousands of
dollars)

Alabama 7,975
Alaska 619
Arizona 8,914
Arkansas 5,408
California 49,511
Colorado 4,388
Connecticut 2,853
Delaware 607
District of Columbia 1,157
Florida 23,799
Georgia 12,249
Hawaii 1,581
Idaho 1,730
Illinois 14,311
Indiana 5,855
Iowa 2,429
Kansas 3,059
Kentucky 5,763
Louisiana 8,124
Maine 1,512
Maryland 4,411
Massachusetts 6,428
Michigan 10,622
Minnesota 4,136
Mississippi 6,176
Missouri 6,153
Montana 1,364
Nebraska 1,810

4

STATE MAXIMUM FACE AMOUNT OF BONDS
THAT MAY BE ISSUED PURSUANT
TO THE CALENDAR YEAR 2003
LIMITATION (thousands of
dollars)
Nevada 1,742
New Hampshire 928
New Jersey 7,826
New Mexico 3,701
New York 30,524
North Carolina 11,607
North Dakota 985
Ohio 13,452
Oklahoma 5,821
Oregon 4,675
Pennsylvania 13,269
Rhode Island 1,146
South Carolina 6,909
South Dakota 710
Tennessee 9,189
Texas 35,853
Utah 2,727
Vermont 676
Virginia 6,462
Washington 7,264
West Virginia 3,334
Wisconsin 4,847
Wyoming 481

American Samoa 470
Guam 412
Northern Marianas 390
Puerto Rico 21,209
Virgin Islands 447

SECTION 4. EFFECTIVE DATE
This revenue procedure is effective as of December 9, 2002,

5
and applies to Bonds issued pursuant to the national limitation
for calendar year 2003 on or after January 1, 2003.

SECTION 5. DRAFTING INFORMATION
The principal author of this revenue procedure is Zoran
Stojanovic of the Office of Assistant Chief Counsel (Tax
Exempt/Employment Tax/Government Entities). For further
information regarding this revenue procedure contact Mr.
Stojanovic at (202) 622-3980 (not a toll-free call).