taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). (d) Definitions For purposes of this subchapter— (1) Credit allowance date The term credit allowance date means— (A) March 15, (B) June 15, (C) September 15, and (D) December 15. Such term includes the last day on which the bond is outstanding. (2) Bond The term bond includes any obligation. (3) State The term State includes the District of Columbia and any possession of the United States. (4) Available project proceeds The term available project proceeds means— (A) the excess of— (i) the proceeds from the sale of an issue, over (ii) the issuance costs financed by the issue (to the extent that such costs do not exceed 2 percent of such proceeds), and (B) the proceeds from any investment of the excess described in subparagraph (A). (e) Credit treated as interest For purposes of this subtitle, the credit determined under subsection (a) shall be treated as interest which is includible in gross income. (f) S corporations and partnerships In the case of a qualified zone academy bond held by an S corporation or partnership, the allocation of the credit allowed by this section to the shareholders of such corporation or partners of such partnership shall be treated as a distribution. (g) Bonds held by real estate investment trusts If any qualified zone academy bond is held by a real estate investment trust, the credit determined under subsection (a) shall be allowed to beneficiaries of such trust (and any gross income included under subsection (e) with respect to such credit shall be distributed to such beneficiaries) under procedures prescribed by the Secretary. (h) Credits may be stripped Under regulations prescribed by the Secretary— (1) In general There may be a separation (including at issuance) of the ownership of a qualified zone academy bond and the entitlement to the credit under this section with respect to such bond. In case of any