Has anyone had any experience claiming CRA credit for Qualified Zone Academy Bonds. Our Investment folks are looking at investing in some QZAB's in one of our markets. Since the schools have to qualify as LMI or be in an empowerment zone to utilize these bonds, are we correct in assuming that we can claim the tax credits we receive in lieu of interest payments as a CRA Investment Credit. Would we also claim credit for the Bond purchase as well?

Any insight into this would be most helpful.

The bond purchases would be qualified for investment credit as long as the qualification for the bond program meets CRA (sounds like a slam dunk) But taking credit for the tax credits you receive...That's not really money spent. You wouldn't take CD credit for the interest earned (obviously it's earned not spent) so I have a very hard time thinking you'll get away with taking credit for the tax credit earnings. An investment must mean out of pocket funds. You're not really using out of pocket funds when we talk about the tax credit piece. That's your yield (though different than interest, still a bonafied yield) and not a cost to you.