On July 22, 2010, Gray & Pannell LLP gave the approving opinion as bond counsel on the first Qualified School Construction Bond (QSCB) issued in the State of Georgia since the passage of the Hiring Incentives to Restore Employment (HIRE) Act by Congress. The QSCB program, originally created by Congress in 2009 as a part of the American Recovery and Reinvestment Act (ARRA), was modified in March of 2010 to allow issuers of QSCBs to receive a direct subsidy payment in lieu of the bonds being issued as a tax credit bonds. The QSCB bond was issued by the South Georgia Governmental Services Authority on behalf of the City of Thomasville School System and is secured by an intergovernmental contract. Because the bond was priced equal to the Qualified Tax Credit Bond Rate established by the U.S. Treasury, the net yield to the School System will be zero percent (0%) over the life of the bond. Please contact our office for more information about this unique tax credit program and how other Georgia school districts may be eligible to apply for QSCB allocations.