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What Are QSCB's?

 

Qualified School Construction Bonds were approved through the American Recovery and Reinvestment Act of 2009 under Title I of Division B.  It authorizes public school districts to issue bonds for construction, rehabilitation, or repair of public school facilities.  It also allows for the acquisition of land on which such facilities can be constructed. In addition, equipment used in the construction, rehabilitation or repair of facilities can be included.  QSCB's can not be used for refunding existing debt.

 

School districts are able to borrow money at zero interest or very low interest rates for a term not more than 15 years.  These bonds can be in any form of indebtedness, such as maintenance notes, time warrants and GO bonds.

 

The lender receives tax-credits in lieu of interest.


No bond election is required unless the school district is issuing I&S debt.

 

Texas received $1 Billion with 40% going directly to the 18 largest school districts.  TEA has published the application and allotment formulas to be used. A minimum of $5 Million per district is available.

 


To obtain more information about QSCBs for local discussions and school board meetings, click on the download button for a presentation by Ed King.

 

 

   PDF Download of QSCB Presentation