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IRS Publishes 2003 Maximum Face Amounts For Qualified Zone Academy Bonds.

NOV. 26, 2002

Rev. Proc. 2002-72; 2002-2 C.B. 931

DATED NOV. 26, 2002
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    Part III

    Administrative, Procedural, and Miscellaneous

    26 CFR 601.601: Rules and regulations.

    (Also Part I, § 1397E)
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2002-26308 (5 original pages)
  • Tax Analysts Electronic Citation
    2002 TNT 229-16
Citations: Rev. Proc. 2002-72; 2002-2 C.B. 931

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).

.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.

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:

                           MAXIMUM FACE AMOUNT OF BONDS

 

                           THAT MAY BE ISSUED PURSUANT

 

                           TO THE CALENDAR YEAR 2003

 

                           LIMITATION (thousands of

 

 STATE                     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

 

 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, 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).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    Part III

    Administrative, Procedural, and Miscellaneous

    26 CFR 601.601: Rules and regulations.

    (Also Part I, § 1397E)
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2002-26308 (5 original pages)
  • Tax Analysts Electronic Citation
    2002 TNT 229-16
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