Educational Facilities Improvement Act

Educational Facilities Improvement Act - Amends the Elementary and Secondary Education Act of 1965 to establish an educational facilities construction and renovation bond subsidy program.

Directs the Secretary of Education to use such bond subsidy program funds to pay up to 50 percent, according to a sliding scale based on need, of the interest costs applicable to any State or local bond for construction or renovation of educational facilities in local areas. Provides for: (1) mandatory direct grants to local bond authorities for up to 100 local areas with the highest numbers of school age children whose families do not exceed 100 percent of the poverty line (plus an optional 25 additional local areas with extraordinary construction or renovation needs); and (2) mandatory grants to States for State or local bond authority assistance for local areas according to a specified formula. Authorizes reservation of specified amounts for Indian schools, schools in U.S. territories, and certain studies, evaluations, and reports.

Sets forth requirements for authorized activities, waivers (in order to increase assistance), fair wages, and reports.

Makes appropriations for FY 1998.

Amends the Internal Revenue Code with respect to foreign tax credit carryback and carryover periods to: (1) reduce from two years to one year the carryback period for unused credits; and (2) extend the carryover period from five years to seven years.