Do rentals and leases of qualifying equipment qualify for the Energy Star holiday exemption?
Rentals and leases of qualifying Energy Star products, including “rent to own” contracts, can qualify for exemption during the new Energy Star sales tax holiday. Under 151.005 the definition of “sale” includes the exchange, barter, lease, or rental of tangible personal property. Therefore, rental and lease contracts (for qualifying items) entered into during the sales tax holiday Memorial Day weekend will qualify for the exemption. The exemption will only apply to the specified rental or lease period designated by the contract. Extensions or renewals of contracts will not qualify unless they occur during another Energy Star holiday.
