SECTION 3. QUALIFIED ZONE

ACADEMY BOND ALLOCATIONS (in dollars) BY STATE OR TERRITORY, 2012 AND 2013

The national limitation for QZABs issued under § 54E for each of calendar years 2012 and 2013 is $400 million. These amounts are allocated among the States as follows:

Under § 54E(c)(3), the maximum aggregate face amount of bonds issued during any calendar year which may be designated as QZABs with respect to any qualified zone academy shall not exceed the limitation amount allocated to such academy for such calendar year. However, under § 54E(c)(4)(A), if for any calendar year the limitation amount for any State exceeds the amount of bonds issued during such year which are designated QZABs with respect to qualified zone academies within such State, the limitation amount for such State for the following calendar year shall be increased by the amount

of such excess. Under § 54E(c)(4)(B), however, any carryforward of a limitation amount may be carried only to the first 2 years following the unused limitation year. For these purposes, the limitation amount shall be treated as used on a first-in first-out basis.

Sections 1.1397E–1 (the “Final Regulations”) sets forth regulations that were issued under § 1397E. For other guidance concerning the applicability of the regulations issued under § 1397E, the credit rate, and the sinking fund yield see § 1.397E–1(m), and Notice 2009–15, 2009–6 I.R.B. 449, Notice 2009–30,

Qualified Zone Academy Bond Allocations by State or Territory, 2012 and 2013

State or Territory 2012 2013

Alabama $7,131,000 $7,131,000 Alaska $605,000 $605,000 Arizona $9,560,000 $9,560,000 Arkansas $4,377,000 $4,377,000 California $48,715,000 $48,715,000 Colorado $5,326,000 $5,326,000 Connecticut $2,970,500 $2,970,500 Delaware $885,000 $885,000 DC $891,000 $891,000 Florida $25,291,000 $25,291,000 Georgia $14,616,000 $14,616,000 Hawaii $1,286,000 $1,286,000 Idaho $2,039,000 $2,039,000 Illinois $14,893,000 $14,893,000 Indiana $7,966,000 $7,966,000 Iowa $2,994,500 $2,994,500 Kansas $3,055,000 $3,055,000 Kentucky $6,444,000 $6,444,000 Louisiana $7,244,000 $7,244,000 Maine $1,462,000 $1,462,000 Maryland $4,625,000 $4,625,000 Massachusetts $5,893,000 $5,893,000 Michigan $13,430,000 $13,430,000 Minnesota $4,911,000 $4,911,000 Mississippi $5,238,000 $5,238,000 Missouri $7,338,000 $7,338,000 Montana $1,179,000 $1,179,000 Nebraska $1,830,000 $1,830,000 Nevada $3,368,000 $3,368,000 New Hampshire $914,000 $914,000 New Jersey $7,145,000 $7,145,000 New Mexico $3,401,000 $3,401,000 New York $24,219,000 $24,219,000 North Carolina $13,318,000 $13,318,000 North Dakota $630,000 $630,000 Ohio $14,611,000 $14,611,000 Oklahoma $5,062,000 $5,062,000 Oregon $5,214,000 $5,214,000 Pennsylvania $13,449,000 $13,449,000 Rhode Island $1,178,000 $1,178,000 South Carolina $6,788,000 $6,788,000 South Dakota $893,000 $893,000

February 11, 2013 485 2013–7 I.R.B.

Qualified Zone Academy Bond Allocations by State or Territory, 2012 and 2013

State or Territory 2012 2013

Tennessee $9,137,000 $9,137,000 Texas $36,825,000 $36,825,000 Utah $3,003,000 $3,003,000 Vermont $568,000 $568,000 Virginia $7,264,000 $7,264,000 Washington $7,413,000 $7,413,000 West Virginia $2,679,000 $2,679,000 Wisconsin $5,794,000 $5,794,000 Wyoming $500,000 $500,000

American Samoa $323,000 $323,000 Guam $330,000 $330,000 Northern Mariana Islands $177,000 $177,000 Puerto Rico $13,318,000 $13,318,000 Virgin Islands $284,000 $284,000

Total Allocation $400,000,000 $400,000,000

exceed $100 per month in the case of the aggregate of transportation in a commuter highway vehicle and any transit pass, and $175 in the case of qualified parking. These amounts are adjusted annually for inflation under section 132(f)(6). Prior to enactment of ATRA, the adjusted maximum monthly excludable amount for 2012 for the aggregate of transportation in a commuter highway vehicle and any transit pass was $125 and the adjusted maximum monthly excludable amount for qualified parking was $240. Section 3.12 of Rev. Proc. 2011–52, 2011–45 I.R.B. 701, prior to amendment by section 3 of Rev. Proc. 2013–15 (released January 11, 2013). ATRA amended section 132(f)(2) to increase the maximum monthly excludable amount for employer-provided commuter highway vehicle transportation and transit pass benefits to an amount equal to the maximum monthly excludable amount for qualified parking. The amendment is effective retroactively beginning on January 1, 2012, and extending through December 31, 2013. Rev. Proc. 2013–15 clarifies that the maximum monthly excludable amount for employer-provided commuter highway vehicle transportation and transit pass benefits for 2012 is $240. (Rev. Proc. 2013–15 also specifies that the maximum monthly excludable amount for 2013 is $245.)

Amounts which are excluded from gross income under section 132 are also excluded from Federal Insurance Contributions Act (FICA) taxes (both social security and Medicare) and Federal income