Should an Internal Revenue Service tax credit bond rate hold true, Lehighton Area School District could be receiving a $6.8 million bond at no interest.

Lehighton successfully applied for the bond as part of the federal Qualified Zone Academy Bond Program."We talked to around 50 banks and got two bids back, one from BB&T and another from M&T Bank," said Zach Williard of Public Financial Management at a school board workshop Monday night. "BB&T offered us the bond at no interest, while M&T's interest rate was around 0.66 percent."Banks bid on the QZAB bonds because they receive a federal tax credit incentive.That tax credit rate is issued daily, Williard said, and right now it is around 4.49 percent."The caveat is by the time we have the paperwork in front of the board to lock things in two weeks from now, that tax credit rate can't drop below 4.31 percent or BB&T can pull this transaction," Williard said.The QZAB program allows qualifying districts to receive the bonds for energy, renovation, technology and Science, Technology, Engineering and Mathematics projects.Lehighton applied for the bond last summer to help pay for renovations at the high school, where it is also looking to start a STEM program.It's the second time the district has had success with a QZAB.Lehighton received almost $8.5 million in September 2014 for renovations to the middle school, but at the time it was not eligible to apply for high school funding because not enough students in the building received free or reduced lunch."We previously fell below the 35 percent threshold at the high school, but we're at 35.72 percent now," Business Manager Brian Feick said in July.In September, Feick said the latest QZAB would help Lehighton pay back a 10-year TD Bank loan approved in 2014.That loan has a 2.1 percent interest rate.The board authorized the district's finance team to prepare the QZAB documents for approval, which is scheduled for its Feb. 27 meeting.