The national contest is usually sponsored by the company whose Chief Executive Officer chairs the U.S. Savings Bond Volunteer Committee. Sponsor of this year's contest is James R. Leva, Chairman, President, and CEO of General Public Utilities Corporation, New Jersey, who chaired the 1996 U.S. Savings Bond Volunteer Committee. State contests are sponsored by local businesses and other organizations. State winners were selected earlier this year. First-place entries from each state and the District of Columbia then were submitted to a panel of judges for selection of the national winners.
Savings bonds have many advantages for investors.
Bonds are available through payroll savings plans in many private companies and other organizations. Savings bonds are safe, backed by the U.S. government, and can be replaced if lost, stolen, or destroyed. Series EE bonds are exempt from state and local income taxes, and the federal income tax liability on earnings can be deferred until the bonds are redeemed or reach final maturity. There are special tax benefits available when bonds are used for education. Investors who qualify can exclude all or part of the interest earned on Series EE bonds from income when the bonds are redeemed to pay for post-secondary education.