A qualified enterprise zone facility bond is a bond issued for financing a project located in a qualified enterprise zone. This type of bond is designed to encourage economic development in designated areas by providing tax incentives to investors. A qualified empowerment zone facility bond, on the other hand, is a bond issued for financing a project located in a qualified empowerment zone and meeting certain other requirements. Empowerment zones are designated areas where local economic conditions are particularly distressed, and these bonds offer even more generous tax incentives than enterprise zone bonds.