Qualified School Construction Bonds

Qualified School Construction Bonds (QSCBs) are a type of tax credit bond designed to help schools raise funds for building or improving facilities. When a school issues a QSCB, the federal government provides a significant tax credit to investors, which is equivalent to a federal subsidy. This makes the bonds attractive to investors because they earn a return through the tax credits rather than solely interest payments. The goal is to make school construction projects more affordable for public schools by reducing financing costs, thereby helping to improve educational infrastructure without overly burdening local budgets.