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Internal Revenue Bulletin:  2010-14 

April 5, 2010 

Notice 2010-17

Qualified School Construction Bond Allocations for 2010


This notice sets forth the maximum face amount of qualified school construction bonds (“QSCBs”) allocated by the Department of the Treasury (Treasury) to each State and large local educational agency for 2010 under § 54F(d) of the Internal Revenue Code (Code). For this purpose, § 54A(e)(3) provides that the term “State” includes the District of Columbia and any possession of the United States. This notice supplements Notice 2009-35, 2009-17 I.R.B. 876 (April 27, 2009).



Section 1521(a) of Title I of Division B of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5, 123 Stat. 115 (2009) (“Act”) added new § 54F to the Code, setting forth program provisions for QSCBs.

Section 54F(a) defines a “qualified school construction bond” to mean any bond issued as part of an issue if —

(1) 100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue,

(2) the bond is issued by a State or local government within the jurisdiction of which such school is located, and

(3) the issuer designates such bond for purposes of this section.

Section 54F(c) provides a national bond limitation authorization for QSCBs of $11 billion for 2009 and $11 billion for 2010 (each, a “calendar year volume cap” and together “volume cap”). Section 54F(c)(3) provides that except for carryforwards provided for in § 54F(e), there is no calendar year volume cap for calendar years after 2010.

Section 54F(b) provides that the maximum aggregate face amount of bonds issued during any calendar year that may be designated under § 54F(a) by any issuer shall not exceed the portion of the calendar year volume cap allocated to such issuer for the calendar year under § 54F(d).

Section 54F(d)(1) provides that, except as provided in § 54F(d)(2)(C), the calendar year volume cap shall be allocated by the Treasury among the States in proportion to the respective amounts each State is eligible to receive under § 1124 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333) (the “Education Act”) for the most recent fiscal year ending before the calendar year. Section 54F(d)(1) further provides that the calendar year volume cap amount allocated to each State is to be further allocated by the State to issuers within the State.

Section 54F(d)(2)(A) provides that 40 percent of the calendar year volume cap for any calendar year is to be allocated under § 54F(d)(2)(B) by the Treasury among local educational agencies that are large local agencies for the calendar year. Section 54F(d)(2)(B) provides that 40 percent of the calendar year volume cap is to be allocated among large local educational agencies in proportion to the respective amounts each such agency received under § 1124 of the Education Act for the most recent fiscal year ending before the calendar year.

Section 54F(d)(2)(C) provides that the allocation of calendar year volume cap to any State under § 54F(d)(1) is reduced by the aggregate amount of allocations under § 54F(d)(2) to large local educational agencies within the State.

Section 54F(d)(2)(E) defines a large local educational agency as any local educational agency if such agency is: (1) among the one hundred local educational agencies with the largest number of children aged 5 through 17 from families living below the poverty level, as determined by the Treasury using the most recent data available from the Department of Commerce that are satisfactory to the Treasury; or (2) one of not more than twenty-five additional local educational agencies that the Secretary of Education determines (based on the most recent data available satisfactory to the Treasury) are in particular need of assistance, based on a low level of resources for school construction, a high level of enrollment growth, or such other factors as the Treasury deems appropriate.

Section 54F(d)(3) provides that the amount allocated under § 54F(d)(1) to any United States possession other than Puerto Rico is an amount that would have been allocated to such possession if all allocations under § 54F(d)(1) were made on the basis of respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). Section 54F(d)(3) further provides that in making the other allocations, the amount to be allocated under § 54F(d)(1) to the States is reduced by the aggregate amount allocated under § 54F(d)(3) to the United States possessions.

Section 54F(d)(4) provides for additional calendar year volume cap amounts of $200 million for calendar year 2009 and $200 million for calendar year 2010 (each an “Indian tribal government calendar year volume cap” and together the “Indian tribal government volume cap”) to be allocated by the Secretary of Interior for purposes of the construction, rehabilitation, and repair of schools funded by the Bureau of Indian Affairs. This $200 million Indian tribal government calendar year volume cap allocated to the Indian tribal governments does not reduce the $11 billion calendar year volume cap allocated to the States and the large local educational agencies. Section 54F(d)(4) further provides that, for amounts of Indian tribal government volume cap allocated, Indian tribal governments (as defined in § 7701(a)(40)) are to be treated as qualified issuers.


The 2010 national bond volume cap for QSCBs is $11 billion. This amount is allocated among the States and large local educational agencies as set forth in this notice. The 2010 allocations to 103 large local educational agencies reflects the determination by the Secretary of Education to select 3 additional large local educational agencies under § 54F(d)(2)(E)(ii) for such year. The first chart below allocates $6.6 billion of the $11 billion 2010 calendar year volume cap for QSCBs to States to be issued by such State or further allocated to the issuers within such State. The second chart below allocates $4.4 billion of the $11 billion 2010 calendar year volume cap for QSCBs to large local educational agencies.

2010 Allocations to States of Volume Cap forQualified School Construction Bonds(Net of Allocations to Large Local Educational Agencies)
State/Territory Total Allocation by State/ Territory
Alabama 140,453,000
Alaska 28,163,000
Arizona 171,115,000
Arkansas 124,197,000
California 720,058,000
Colorado 95,686,000
Connecticut 98,431,000
Delaware 29,797,000
District of Columbia 0
Florida 81,038,000
Georgia 234,431,000
Hawaii 0
Idaho 39,379,000
Illinois 251,167,000
Indiana 182,583,000
Iowa 66,422,000
Kansas 82,984,000
Kentucky 138,870,000
Louisiana 140,525,000
Maine 41,368,000
Maryland 45,190,000
Massachusetts 157,361,000
Michigan 297,611,000
Minnesota 80,649,000
Mississippi 134,610,000
Missouri 146,348,000
Montana 31,838,000
Nebraska 35,294,000
Nevada 5,157,000
New Hampshire 29,797,000
New Jersey 215,904,000
New Mexico 62,037,000
New York 178,782,000
North Carolina 188,591,000
North Dakota 25,974,000
Ohio 293,763,000
Oklahoma 91,217,000
Oregon 109,096,000
Pennsylvania 286,677,000
Rhode Island 41,296,000
South Carolina 129,456,000
South Dakota 29,797,000
Tennessee 119,131,000
Texas 547,674,000
Utah 55,599,000
Vermont 24,236,000
Virginia 172,249,000
Washington 162,837,000
West Virginia 72,262,000
Wisconsin 100,459,000
Wyoming 24,589,000
American Samoa 10,614,000
Guam 10,838,000
Northern Marianas 6,824,000
Puerto Rico 0
Virgin Islands 9,576,000
Total 6,600,000,000
2010 Allocations to Large Local Educational Agencies of Volume Cap forQualified School Construction Bonds
State Large Local Educational Agency Allocation
Alabama Birmingham City School District 14,274,000
Alabama Mobile County School District 25,419,000
Arizona Mesa Unified District 19,466,000
Arizona Phoenix Union High School District 12,514,000
Arizona Tucson Unified District 20,018,000
California Bakersfield City Elementary 15,102,000
California Compton Unified 16,893,000
California Fresno Unified 39,773,000
California Long Beach Unified 34,501,000
California Los Angeles Unified 290,180,000
California Oakland Unified 23,960,000
California Sacramento City Unified 19,342,000
California San Bernardino City Unified 25,294,000
California San Diego City Unified 36,093,000
California San Francisco Unified 12,957,000
California Santa Ana Unified 17,539,000
California Stockton City Unified 14,934,000
Colorado Denver County 1 29,262,000
District of Columbia District of Columbia Public Schools 32,947,000
Florida Brevard County School District 12,271,000
Florida Broward County School District 51,646,000
Florida Dade County School District 95,438,000
Florida Duval County School District 33,074,000
Florida Hillsborough County School District 37,935,000
Florida Lee County School District 14,308,000
Florida Marion County School District 11,253,000
Florida Orange County School District 36,229,000
Florida Palm Beach County School District 34,023,000
Florida Pasco County School District 13,627,000
Florida Pinellas County School District 23,529,000
Florida Polk County School District 21,223,000
Florida Volusia County School District 17,796,000
Georgia Atlanta City School District 34,526,000
Georgia Clayton County School District 15,166,000
Georgia De Kalb County School District 29,940,000
Georgia Fulton County School District 17,917,000
Georgia Gwinnett County School District 19,640,000
Georgia Richmond County School District 15,979,000
Hawaii Hawaii Department of Education 29,797,000
Illinois City of Chicago School District 299 257,127,000
Indiana Indianapolis Public Schools 31,534,000
Kentucky Jefferson County School District 30,352,000
Louisiana Caddo Parish School Board 20,707,000
Louisiana East Baton Rouge Parish School Board 21,675,000
Louisiana Jefferson Parish School Board 21,891,000
Louisiana Orleans Parish School Board 40,055,000
Maryland Baltimore City Public School System 53,530,000
Maryland Baltimore County Public Schools 19,952,000
Maryland Prince George’s County Public Schools 25,803,000
Massachusetts Boston 41,474,000
Michigan Detroit City School District 127,644,000
Minnesota Minneapolis 19,787,000
Minnesota St. Paul 18,253,000
Mississippi Jackson Public School District 15,429,000
Missouri Kansas City School District 16,274,000
Missouri St. Louis City 28,481,000
Nebraska Omaha Public Schools 18,922,000
Nevada Clark County School District 58,833,000
New Jersey Newark City 25,753,000
New Mexico Albuquerque Public Schools 25,025,000
New York Buffalo City School District 33,025,000
New York New York City 664,010,000
New York Rochester City School District 28,376,000
North Carolina Charlotte-Mecklenburg Schools 25,051,000
North Carolina Cumberland County Schools 14,805,000
North Carolina Forsyth County Schools 14,162,000
North Carolina Guilford County Schools 16,843,000
North Carolina Wake County Schools 17,606,000
Ohio Cincinnati City School District 25,922,000
Ohio Cleveland Municipal School District 51,058,000
Ohio Columbus City School District 39,266,000
Ohio Toledo City School District 20,962,000
Oklahoma Oklahoma City 18,167,000
Oklahoma Tulsa 15,625,000
Pennsylvania Philadelphia City School District 145,352,000
Pennsylvania Pittsburgh School District 19,520,000
Puerto Rico Puerto Rico Department of Education 380,394,000
South Carolina Charleston County School District 15,076,000
South Carolina Greenville County School District 14,302,000
Tennessee Knox County School District 11,979,000
Tennessee Memphis City School District 49,710,000
Tennessee Nashville-Davidson County School District 24,016,000
Texas Aldine Independent School District 19,022,000
Texas Alief Independent School District 16,483,000
Texas Arlington Independent School District 13,656,000
Texas Austin Independent School District 24,078,000
Texas Brownsville Independent School District 25,901,000
Texas Dallas Independent School District 69,599,000
Texas Edinburg Consolidated Independent School District 13,967,000
Texas El Paso Independent School District 29,140,000
Texas Fort Worth Independent School District 28,764,000
Texas Garland Independent School District 12,488,000
Texas Houston Independent School District 95,370,000
Texas La Joya Independent School District 13,544,000
Texas Laredo Independent School District 14,165,000
Texas Northside Independent School District 14,641,000
Texas Pasadena Independent School District 14,609,000
Texas Pharr-San Juan-Alamo Independent School District 13,453,000
Texas San Antonio Independent School District 30,730,000
Texas Ysleta Independent School District 17,869,000
Virginia Norfolk City Public Schools 15,092,000
Virginia Richmond City Public Schools 14,983,000
Wisconsin Milwaukee 72,933,000
Total 4,400,000,000


The allocations of the national bond volume cap for QSCBs in Section 3 are effective for QSCBs issued, pursuant to an allocation of 2010 calendar year volume cap, after March 16, 2010.


The Department of the Interior is exclusively responsible for making the allocations of the Indian tribal government volume cap and published a notice in the Federal Register, 74 F.R. 56211-02 (October 30, 2009), soliciting applications for allocations of such volume cap. Interested parties may also contact John Rever, Director, Office of Facilities, Environment and Cultural Resources, Bureau of Indian Affairs, at (703) 390-6314 or


The principal authors of this notice are Aviva M. Roth and Johanna Som de Cerff of the Office of Associate Chief Counsel (Financial Institutions & Products). For further information regarding this notice, contact Johanna Som de Cerff at (202) 622-3980 (not a toll-free call).

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