rp-98-57.pdf

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# Part III

Administrative, Procedural, and Miscellaneous

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

## Rev. Proc. 98-57

### 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 1999. For this purpose "State"
includes the District of Columbia and the possessions of the
United States.

### SECTION 2. BACKGROUND

. 01 Section 226 of the Tax Relief Act of 1997, Pub. L. 105-
34, 111 Stat. 788 (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).

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. 02 The aggregate amount of Bonds that may be issued for
the States is limited to $400 million for 1998 and $400 million
for 1999 (the "national limitation"), unless the carryover
provisions of § 1397E (e) (4) apply. 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. A State may carry forward to the next calendar year
any amount of an allocation of the national limitation for a
calendar year that is in excess of the amount of Bonds issued
during that calendar year that are designated with respect to
qualified academies within the State.

. 03 Rev. Proc. 98-9, 1998-3 I.R.B. 56, allocated the
national limitation for 1998 among the States and possessions.
SECTION 3. SCOPE

This revenue procedure applies to Bonds issued under § 1397E
during 1999.

SECTION 4. NATIONAL QUALIFIED ZONE ACADEMY BOND LIMITATION FOR
1999

The total face amount of bonds that may be issued in 1999 is
$400 million. This amount is allocated among the States as
follows:

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STATE

MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE
ISSUED DURING 1999
(thousands of dollars)

ALABAMA

$ 7,015

ALASKA

591

ARIZONA

8,408

ARKANSAS

5,433

CALIFORNIA

57,589

COLORADO

3,376

CONNECTICUT

2,975

DELAWARE

760

DISTRICT OF COLUMBIA

1,192

FLORIDA

21,689

GEORGIA

11,699

HAWAII

1,730

IDAHO

1,931

ILLINOIS

14,231

INDIANA

5,433

IOWA

2,848

KANSAS

2,637

KENTUCKY

6,572

LOUISIANA

7,290

MAINE

1,308

MARYLAND

4,452

MASSACHUSETTS

7,722

MICHIGAN

10,613

MINNESOTA

4,821

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STATE

MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE
ISSUED DURING 1999
(thousands of dollars)

MISSISSIPPI

$ 4,800

MISSOURI

6,614

MONTANA

1,466

NEBRASKA

1,720

NEVADA

2,004

NEW HAMPSHIRE

1,150

NEW JERSEY

7,775

NEW MEXICO

4,083

NEW YORK

31,426

NORTH CAROLINA

8,851

NORTH DAKOTA

918

OHIO

12,986

OKLAHOMA

4,810

OREGON

4,030

PENNSYLVANIA

14,104

RHODE ISLAND

1,266

SOUTH CAROLINA

5,275

SOUTH DAKOTA

1,234

TENNESSEE

8,345

TEXAS

34,781

UTAH

1,952

VERMONT

570

VIRGINIA

9,051

WASHINGTON

5,581

WEST VIRGINIA

3,017

WISCONSIN

4,452

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STATE

MAXIMUM FACE AMOUNT OF
BONDS THAT MAY BE
ISSUED DURING 1999
(thousands of dollars)

WYOMING

$ 696

AMERICAN SAMOA

367

GUAM

217

NORTHERN MARIANAS

337

PUERTO RICO

23,484

VIRGIN ISLANDS

323

### SECTION 6. EFFECTIVE DATE

This revenue procedure applies to Bonds issued after
December 31, 1998.

#### DRAFTING INFORMATION

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