Establishes a tax credit for Qualified Community College Bonds under the Internal Revenue Code of 1986.
Defines “qualified community college bond” as a bond issued for specific educational purposes, with at least 95% of proceeds used for qualified purposes related to community colleges.
Bonds must be issued by state, local, or tribal governments in consultation with relevant jurisdictions.
Introduces a national limitation of $1 billion for Qualified Community College Bonds each calendar year.
Allocations of the bond limitation will be managed by the Secretary of the Treasury, in consultation with the Secretary of Education.
Sets a cumulative limitation of 10% of the national bond limitation for any single state.
Requires applications for bond allocations to include details on financial sustainability, approvals from governing bodies, and evidence of community need.
Prioritizes allocations for colleges serving underserved areas and those with partnerships with local high schools or other educational institutions.
Mandates that a significant portion of construction or renovation projects funded by these bonds adhere to green building standards.
Defines various terms related to the legislation, including “governing body,” “qualified area,” and “qualified purpose.”
Specifies labor standards for construction projects financed by these bonds, ensuring workers are paid prevailing wages.
Revives previous tax credit provisions related to qualified tax credit bonds and allows credits to both holders and issuers of these bonds.
The legislation applies to obligations issued after its enactment.