What is the difference between a tax-exempt municipal lease and a commercial lease?
Our municipal leases are special financial vehicles that provide the benefit of exempting our banks and investors from federal income tax, allowing us to pass along rates that are generally far below conventional bank financing or commercial lease rates. Also unlike commercial leases, the equipment is being sold directly to the tax-exempt entity (not to the leasing company). This means the government “owns” the equipment the day it is delivered and accepted. ► Most commercial leases are structured as rental agreements with either nominal or fair market value purchase options.
