SECTION 2. BACKGROUND
Internal Revenue Bulletin 2007-5 · 2026-10-03 edition · updated 2026-10-04 · United States
.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 § 107 of the Tax Relief and Health Care Act of 2006, Pub. L. 109–432, 120 Stat. 2922 (2006), provides that the national Bond limitation is $400 million for each of the years 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, and 2007. 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
MAXIMUM FACE AMOUNT OF BONDS THAT MAY BE ISSUED FOR EACH OF THE CALENDAR YEARS 2006 AND 2007 (thousands of dollars)
Alabama 7,698 Alaska 677 Arizona 9,412 Arkansas 3,921 California 48,404 Colorado 5,440 Connecticut 3,346 Delaware 801 District of Columbia 1,180 Florida 20,271 Georgia 13,322 Hawaii 1,129 Idaho 1,468 Illinois 14,790 Indiana 7,944 Iowa 3,356 Kansas 3,459 Kentucky 6,148 Louisiana 7,677 Maine 1,704 Maryland 5,563 Massachusetts 6,579 Michigan 12,275 Minnesota 4,229 Mississippi 5,861
January 29, 2007 413 2007–5 I.R.B.
STATE
MAXIMUM FACE AMOUNT OF BONDS THAT MAY BE ISSUED FOR EACH OF THE CALENDAR YEARS 2006 AND 2007 (thousands of dollars)
Missouri 6,764 Montana 1,314 Nebraska 1,714 Nevada 2,669 New Hampshire 749 New Jersey 6,076 New Mexico 3,562 New York 28,328 North Carolina 11,444 North Dakota 718 Ohio 14,287 Oklahoma 5,573 Oregon 4,475 Pennsylvania 14,082 Rhode Island 1,304 South Carolina 6,425 South Dakota 924 Tennessee 8,950 Texas 37,781 Utah 2,381 Vermont 482 Virginia 7,020 Washington 6,528 West Virginia 2,833 Wisconsin 5,676 Wyoming 554
American Samoa 363 Guam 397 Northern Marianas 380 Puerto Rico 19,230 Virgin Islands 363
Total $400,000
revenue procedure, contact Mr. White at (202) 622–3980 (not a toll-free call).
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