[Congressional Record Volume 157, Number 53 (Tuesday, April 12, 2011)]
[Senate]
[Pages S2395-S2396]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (for himself, Mr. Kerry, Mr. Harkin, Mr. 
        Begich, and Mr. Johnson of South Dakota):
  S. 796. A bill to amend the Internal Revenue Code to extend qualified 
school construction bonds and qualified zone academy bonds, to treat 
qualified zone academy bonds as specified tax

[[Page S2396]]

credit bonds, and to modify the private business contribution 
requirement for qualified zone academy bonds; to the Committee on 
Finance.
  Mr. ROCKEFELLER. Mr. President, today, along with my colleagues 
Senator Kerry of Massachusetts, Senator Harkin of Iowa, Senator Begich 
of Alaska, and Senator Johnson of South Dakota, I am introducing 
legislation to extend and improve two important programs that create 
good jobs and help our nation's schools. In order for America to out-
innovate, out-educate, and out-build the rest of the world, we must 
begin with our schools, and this legislation will make it easier to 
create spaces where 21st century learning can occur. The Qualified 
School Construction Bond, QSCB, and Qualified Zone Academy Bond, QZAB, 
programs have helped schools begin to address their construction and 
renovation needs, as well as creating construction jobs in their 
communities. Because of the tax credit associated with these bonds, the 
schools essentially do not have to pay interest which makes it much 
easier for them to fund their significant construction and renovation 
needs.
  The Qualified School Construction Bond program was created in 2009, 
and bond proceeds can be used for construction, rehabilitation, or 
repair of a public school or for land for a facility. The total amount 
of bonds allowed was $11 billion in 2009 and $11 billion in 2010. This 
national allocation is distributed by formula to the states and larger 
school districts. West Virginia, for example, was able to issue its 
full allocation of $72.3 million in bonds in 2010. Construction workers 
in West Virginia are building schools for their children. West Virginia 
is rightfully paying for the construction, but this bond program means 
their dollars go further. My legislation extends this important program 
through 2015 with the same $11 billion per year total national 
allocation of bonds.
  The Qualified Zone Academy Bond, QZAB, program was created in 1997. 
While it also helps schools issue bonds by providing favorable tax 
status, participating schools must be located in an empowerment zone or 
enterprise community or expect that at least 35 percent of the students 
will be eligible for free or reduced-cost lunches. Bonds cannot be used 
for new construction, but can be used for the rehabilitation or repair 
of schools, equipment, course development, and teacher training. The 
national limitation for bonds issued under this program was $1.4 
billion for 2009 and 2010 and my legislation extends that annual limit 
through 2015. This program has historically required a 10 percent match 
from private entities, and this requirement has proven a significant 
barrier to its use in some communities. My legislation provides an 
option to waive this match in some cases. It also allows the bond 
issuer to receive the tax credit as a payment. The Hiring Incentives to 
Restore Employment--HIRE--Act which became law last spring made this 
change for both bond programs and it resulted in greater use of the 
bonds. The huge Middle Class Tax Relief Act of 2010 which we passed in 
December repealed this change for QZABs, and my legislation makes the 
credit once again refundable. We know this helps schools utilize this 
program, and we need to give our schools every incentive to invest in 
education.
  It is important that we continue both of these important programs. 
The school infrastructure needs of our country are immense. A recent 
report estimated the total school infrastructure needs across the 50 
States was over $250 billion. We won't meet that need in a year, or in 
2 years, but we need to commit ourselves to keep at it. I urge my 
colleagues to support this bill.
                                 ______