Eastern Kentucky Renewal Community Federal Renewal Community Tax Incentives Other Federal Incentives   Bond Financing   BOND FINANCING DESCRIPTION AVAILABILITY Qualified Zone Academy Bonds State or local governments can issue bonds at 0-percent interest cost to them to finance public school programs with private business partnerships. Private businesses must contribute money, equipment, or services equal to 10 percent of bond proceeds (which may qualify as a charitable contribution). The Federal Government pays interest in the form of tax credits to banks, insurance companies, and certain lending corporations that hold QZABs. Federal allocation to States. State education agency allocates credit to a Qualified Zone Academy to finance materials, teacher training, building renovation, or equipment for programs that prepare students for jobs or college. Schools must be located in the RC or have 35 percent of students eligible for free or reduced-cost lunch program.   Captial Gains   CAPITAL GAINS DESCRIPTION AVAILABILITY Zero Percent Capital Gains Rate for RC Assets. The holder, for a minimum of five years, of a RC asset acquired between January 1, 2002 and December 31, 2009 will not have to include in its gross income any qualified capital gain from the sale or exchange of the asset. Exclusion applies only to an interest in, or property of, certain businesses operating in the RC. The following qualify as RC assets: RC business stock, RC partnership interests, and RC business properties. Only gain attributable to the period from January 1, 2002 through December 31, 2014 for RC areas may be excluded.   Other Incentives   OTHER INCENTIVES DESCRIPTION AVAILABILITY New Markets Tax Credit Equity investors in qualified Community Development Entities (CDEs) can obtain a tax credit against Federal taxes of 5 to 6 percent of the amount invested for each of the years the investment is held, for up to 7 years of the credit period. Allocations of the credit will be made annually from 2001-2007 to qualified CDEs. Investors must purchase stock or partnership interest in a CDE for cash at original issuance. Credit available at time of purchase (1 year) and on 6 anniversary dates of acquisition of investment. Low-Income Housing Tax Credit Ten-year credit against Federal taxes for owners of newly constructed or renovated rental housing who set aside a specified percentage of units for low-income persons for a minimum of 15 years. The credit varies for new construction and renovation. Project must receive allocation of Kentucky's annual credit ceiling or use multifamily housing tax-exempt bonds that receive allocation of Kentucky's bond volume cap. Allocations are made on the basis of Kentucky's plan. The project does not have to be located in an EZ, EC, or RC to qualify.   For more information contact: Susan Wilder · Executive Director Booneville/Owsley County Industrial Authority P.O. Box 637 · Booneville, KY 41314 Phone: 606-593-7296 · Fax: 606-593-7781 Email: swilder@owsleycountykentucky.org