SECTION 4. NATIONAL ZONE

ACADEMY BOND LIMITATION FOR 2008

The national limitation for QZABs issued under § 54E for calendar year 2008 is $400 million. This amount is allocated among the States as follows:

Qualified Zone Academy Bond Allocations by State or Territory, 2008.

notice and the provisions of §§ 54A and 54E, the existing regulations issued under § 1397E.

.02. CREDIT RATE

For QZABs issued under §§ 54A and 54E, the maximum maturity and the credit rate are determined as of the date that there is a binding, written contract for the sale or exchange of the bond. The applicable maximum maturity and the QZAB credit rate are published for that date by the Bureau of Public Debt on its Internet site for State and Local Government Series securities at: http://www.treasurydirect.gov . For further information regarding the methodology and procedures that the Treasury Department uses to determine these credit rates, see Notice 2009–15, 2009–6 I.R.B. 449 (February 9, 2009).

.03 SINKING FUND YIELD

Section 54A(d)(4)(C) provides that an issue shall not be treated as failing to meet the requirements of § 148 by reason of any fund which is expected to be used to repay the issue if: (i) the fund is funded at a rate not more rapid than equal annual installments; (ii) the fund is funded in a manner reasonably expected to result in an amount not greater than an amount necessary to repay the issue; and (iii) the yield on such fund is not greater than the discount rate determined under § 54A(d)(5)(B) (the “permitted sinking fund yield”).

The permitted sinking fund yield is determined under § 54A(d)(5)(B) by using a rate equal to 110 percent of the long-term adjusted, applicable federal rate (“AFR”), compounded semiannually, for the month in which the bond is sold.

State or Territory QZAB Allocations (in dollars)

Alabama 7,606,000 Alaska 600,000 Arizona 8,817,000 Arkansas 4,924,000 California 44,364,000 Colorado 5,694,000 Connecticut 2,692,000 Delaware 881,000 District of Columbia 921,000 Florida 21,607,000 Georgia 13,250,000 Hawaii 1,001,000 Idaho 1,781,000 Illinois 14,972,000 Indiana 7,586,000 Iowa 3,182,000 Kansas 3,002,000 Kentucky 7,145,000 Louisiana 7,756,000 Maine 1,541,000 Maryland 4,543,000 Massachusetts 6,215,000 Michigan 13,781,000 Minnesota 4,824,000 Mississippi 5,824,000 Missouri 7,426,000 Montana 1,321,000 Nebraska 1,931,000 Nevada 2,702,000 New Hampshire 901,000 New Jersey 7,296,000 New Mexico 3,493,000 New York 25,720,000 North Carolina 12,600,000 North Dakota 741,000 Ohio 14,651,000

April 20, 2009 854 2009–16 I.R.B.

State or Territory QZAB Allocations (in dollars)

Oklahoma 5,574,000 Oregon 4,744,000 Pennsylvania 13,941,000 Rhode Island 1,221,000 South Carolina 6,425,000 South Dakota 1,011,000 Tennessee 9,547,000 Texas 37,939,000 Utah 2,512,000 Vermont 610,000 Virginia 7,436,000 Washington 7,256,000 West Virginia 2,982,000 Wisconsin 5,885,000 Wyoming 440,000 American Samoa 391,000 Guam 399,000 Northern Mariana Islands 389,000 Puerto Rico 17,644,000 U.S. Virgin Islands 363,000 Total Allocation 400,000,000