Frequently Asked Questions About Municipal Leasing
We’ll do our best to make you as much of an expert on municipal lease-to-own financing as you want to be. You’ll find answers to a number of the most often asked municipal leasing questions (FAQ’s!). Click on any question that interests you or all of them. Each question block will expand to show the full answer. We welcome every question; we want you to be 100% comfortable. No guessing or assumptions–we’ve got you covered.
How Does Municipal Leasing Work?
The "nuts & bolts" of municipal leasing for government agencies like yours. We'll take you through it, step by step . It really is this easy!
Step #1: Municipal leasing begins with your dealer/vendor pricing quotes (exact, or your best estimates) on the vehicles and/or equipment that you are considering--include any upfits and accessories you would normally include to make this a 100% turnkey solution for your department.
Select Any Vendor of your choice--a local dealer, the state contract provider or from a cooperative buying group that you participate with; one source or 5, whatever it takes to get exactly what YOU need. Your pricing estimates may change--and that's fine! Before anything is finalized, all pricing will be re-calculated "down to the penny."
Step #2: Request a one-page municipal lease-to-own quote from us at:
800-541-0114
or request Quick Quote Now.
Step #3: Our one page municipal leasing quotation will be on your desk the same day and CLEARLY show the payment amounts and our very low government interest rates. We will provide rates for any terms and options (e.g. 3, 4, 5 or more years, monthly, quarterly, semi or annual payments) starting on the dates you select. Pricing, equipment and terms are all "fine tuned" to your exact requirements.
Step #4: Have we answered all of your question? Great! Email (or fax) us the two page credit application along with a copy of the quotations from your vendors, a current budget and the last 3 years of audits.
For municipal leasing transactions under $100,000 and 5 years, all we'll need is a one page application and a vendor quotation. No audits, financials or resolutions required! E-A-S-Y-!
Step #5: Municipal lease contract documents will be drafted and overnighted for your review, approval and signature. We even provide a prepaid overnight return envelope for your convenience. You are 100% in control of the process every step of the way. NOTHING happens without your "OK" up front. A confirmation copy of every disbursement that you authorize (via bank wire transfer or ban cashier's check) is provided on the next business day.
THAT'S IT! Upon receipt of your executed municipal leasing documents, the full amount of the lease is deposited into an account in your city's 
name, at our bank. Our bank will disburse up the lease funds directly to your vendors on your behalf. We work fast! A bank wire transfer or cashiers check to pay your vendors can be released within 3 business days of your request.
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We 
can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (what’s the downside of seeing some actual numbers?) And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months. (see computers for schools)
We’ve Got You Covered!
Do You Have ANY questions about how municipal leasing works?
800-541-0114
(On your phone? Click to call! Select Ext. 15 for Government Leasing)
What Is “Tax Exempt” Municipal Leasing?
(A non-technical/non-legal overview)
You’ve probably heard the phrase “tax-exempt” in the context of municipal leases or their financial “first cousins,” municipal bonds. Both are very low cost methods of financing used by governments to acquire essential-use equipment. Including vehicles, hardware, software, police & fire stations, jails and maintenance facilities.
Tax-Exempt "Municipal” Leasing is an umbrella phrase that applies to state, county and municipal governments, special districts and authorities (very generally, entities funded with tax dollars).
The “Tax-Exempt” Designation is Sometimes Misunderstood
The I.R.S. created tax-exempt municipal leasing as an incentive to financial institutions to serve state, county & municipal entities (also referred to as state and political subdivisions) using the lowest possible rates. The I.R.S. accomplished this by exempting those financial institutions from certain income taxes on profits earned when lending to qualifying governments like yours. “Tax exempt” distinguishes between this unique type of financing higher-cost commercial loans and leases. This I.R.S. financial institution tax exemption is not related to sales, use or other taxes a government is otherwise be obligated to pay.
What’s the Difference Between a Municipal Lease and a Municipal Bond?
Both are types of multi-year financing. Both reflect the very attractive interest rates characteristic of their tax-exempt pricing structure. There are some VERY IMPORTANT DIFFERENCES for government borrowers.
Municipal bonds create debt and are structured around an unconditional “full faith and credit” pledge to pay by the municipal entity.
This pledge includes the obligation to levy taxes on every resident to pay bond debt, should funds be otherwise insufficient to meet the obligation. This is why most bonds require public consent in the form of complicated, time-consuming and expensive voter referendums.
Municipal leases are generally treated as expenses because they are subject to the annual appropriation of funds in most jurisdictions.
Should funds be insufficient (or are not appropriated for any legal reason) in any future budget year, the government body would have the legal prerogative to terminate the lease and in essence “walk away.” While the very low interest rates on municipal leasing programs compares directly with bonds, municipal lease issuance expenses are just a small fraction of the legal compliance costs incurred on a bond. Making bonds a much more expensive option for all but the very largest (7-8 figure/15-30 year) transactions.
Municipal Lease Interest Rates Are FIXED
Tax-exempt municipal leasing rates are low and locked-in up front for the full term of the lease. Bond rates FLOAT until the underwriter brings your issue “to market,” where your final (actual) rates are set by bond traders and the investing public. And you may or may not like the numbers–you may even find yourself back at “square one.”
View more FAQ’s about municipal leasing here!
IMPORTANT NOTES:
1) This discussion above is intended as a non-technical/non-legal overview only.
2) First Capital Equipment Leasing Corp. ("FCELC”) acts for its own interest only. FCELC does not act as a municipal advisor, municipal financial consultant, fiduciary or agent to any person or entity pursuant to Section 15B of the Securities Exchange Act of 1934 and the municipal advisor rules of the SEC. FCELC is not recommending that you take an action with respect to the information contained on this page or this website. You should review and discuss anything presented herein with such independent financial, tax, legal and other advisors as you deem appropriate.
What's the difference between municipal and commercial leases?
There are a lot of important differences between municipal and commercial leases. For example: the equipment is being sold directly to the government entity (not to the leasing company). This means your government "owns" the equipment. Ownership (title) transfers the day the vehicles/equipment are delivered and accepted by your agency*. Also, our municipal leases are based on tax-exempt municipal interest rates which are almost always the lowest cost type of borrowing available to government entities like yours.
With a commercial vehicle or equipment lease the equipment is sold to a financial institution (who cannot take advantage of government contract pricing or the tax-exempt interest rates--that only your agency is eligible for). A commercial lease is also based on significantly higher commercial interest rates. Most commercial leases are effectively structured as rental agreements with either residual buyouts, nominal or fair-market-value purchase options on the back end.
Any "purchase option" in the lease is a clear indication that your agency is not the owner and that you are likely not benefiting from the very low interest rates of the municipal lease that you are eligible for.
Another critical difference is that Commercial leases are "firm term" obligations that do not include the non-appropriation of funds language that is required in almost all jurisdictions require. They create balance sheet debt.
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Just keep reading here on Municipal-Leasing.com, or call us now!
Do You Have Municipal Leasing Questions? Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Municipal Leasing)
* Note: First Capital will only retain a security interest during the term of the lease (Except in Florida and Tennessee)
What is Non Appropriation ("funding out") Language?
And why is non-appropriation so important to me? Great question! Our municipal leases automatically include non-appropriation (or "funding out") language wherever required by law. This 
unique contract language effectively relieves the government entity of the obligation to pay in the event funds are not appropriated in any subsequent budget period, for any legal reason.
Every governing body must reaffirm their "willingness" and their financial "ability" to pay a municipal lease, every year.
The government entity does this simply by including the lease payments in each budget (no special paperwork). With just a handful of exceptions, most government entities simply aren't allowed under state and/or local laws, to incur any municipal obligation without non appropriation language included. Most governments treat multi-year municipal lease obligations (with non appropriation provisions) as expenses, rather than long term debt. That's a very important difference for many governments.
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (what’s the downside of seeing a 100% no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Just keep reading here on Municipal-Leasing.com, or call us now!
Do You Have Municipal Leasing Questions? Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Government Leasing)
Do We Have to Wait Until Next Fiscal Year? No!
My agency's budget year starts July 1st. (or September 1st or January 15th...or next year). Do I have to delay municipal leasing until then?
That's one of the many benefits of First Capital's municipal leasing--As an example; your agency can sign the municipal lease documents today. You can take delivery from your vendor tomorrow and we can pay your vendor in full within 3 business days.
Your agency's first lease payment can be any day that you select. 30, 90, 180 days or even 12 months, from today! Payments can be monthly, quarterly, semi-annually or annually.
When First Capital pays your vendor, is NOT LINKED to when your city is required to make its lease payments to us!
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency!
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Do You Have Municipal Leasing Questions? Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Government & Municipal)
Yes!
All of our municipal leases can be prepaid after any given lease period.
Every lease agreement automatically includes an amortization table that shows the interest, principal and early payoff amount for each period of the lease.
Future early payoff amounts are guaranteed (locked in) up front. An amortization schedule can be prepared in advance should you need to review it
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
D you have questions about our municipal lease early payoff options?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Municipal Leasing)
Who pays for maintenance & insurance with a municipal lease?
The responsibility for maintenance and insurance rests with government entity--exactly as it does with any other vehicles or equipment purchased for cash.
The government entity owns the vehicles and equipment under a municipal lease from the day of vendor delivery/installation. In the case of "titled vehicles" for example, your government would be registering those vehicles in its name as soon as the vendor delivers. Same with any other non-titled equipment; legally the government owns everything financed under the lease (subject only to our bank's security interest).
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Questions about maintenance, insurance and municipal leasing?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Government Leasing)
Who owns the vehicles & equipment in a municipal lease?
Your government OWNS EVERYTHING financed under one of our municipal leases--from the day it is delivered.
Every vendor invoice is "Bill To:" and "Ship To:" your agency, not us. Every purchase is 100% direct between your agency and the vendors YOU HAVE SELECTED. (Our name does not appear on any vendor paperwork.)
No buyouts, balloons or lease-end monies due. Ever.
You order the vehicles and equipment directly from the vendors of your choice. Local dealer, state contract, buying group; whatever works best for government agency. At your direction our bank pays your vendors on your behalf. Vehicles are titled by you, in your agency's name.
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Just keep reading here on Municipal-Leasing.com, or call us now!
Do You Have Municipal Leasing Purchasing & Ownership Questions?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Government & Municipal)
When Does the Vendors Get Paid (And Who Pays Them)?
Upon receipt of your signed municipal lease-to-own contract, 100% of the dollar amount of the lease is deposited into an account in your agency's name, at our bank.
Within 3 business days of receiving your vendor payment authorization, up to 100% of the lease amount can be disbursed to one or more of your vendors, on your behalf in the form of a bank wire transfer or cashiers check .
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Just keep checking out the FAQ's here, or call!
Do You Have Municipal Leasing Questions? Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Government & Municipal Leasing)
Which Government Entities Qualify for Municipal Leasing?
Virtually any state, county, 
city & municipal entity qualifies for municipal leasing under IRS Section 103. This , includes Public Works, Public Safety, Fire, Rescue, EMS, Water, Public Schools, Ports & Parking Authorities and a variety of "special districts" and authorities.
To be designated as "qualifying," the IRS requires that a government entity have one or more of the following legal authorities:
- Does your government entity have the power to police;
and/or - Does your government entity have the authority to levy and collect taxes; and/or
- Does your government entity have legal prerogative of eminent domain?
If your government has one or more of these 3 legal powers, you're good to go with our municipal leasing programs.
The IRS has also carved out one special exception for Volunteer Fire Departments looking to finance fire trucks or fire houses (only). New or renovated.
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Just keep reading here on Municipal-Leasing.com, or call us now!
Do You Have Questions About Qualifying for Municipal Lease Rates?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Municipal Leasing)
Leasing for Schools: Public, Private & Charter
There are many, many differences between public, charter and private schools on everything from tuition to admissions to teacher qualifications and funding formulas. Here, we are addressing the differences in how essential hardware, software, vehicles and equipment can financed at lowest applicable rates.
Public School Leasing
Public Schools are open to all, tuition free and are funded with federal, state and local tax dollars. Jurisdictions (local or regional) are mandated by law to provide and fund public schools. As part of municipal or county government, or as an independent school district, these public schools enjoy all the same borrowing authority as other municipal entities and are eligible for the same very low, tax exempt municipal interest rates and terms. Public School leases will automatically include non-appropriation of funds language wherever required by law. Vehicles and equipment are titled in the municipal entity's name upon vendor delivery.
Charter School Leasing
Charter Schools are a special kind of tuition-free public school funded by tax dollars. Charter Schools generally exist under state rules ("charters") that vary significantly from jurisdiction to jurisdiction. Although charter school leasing is ultimately funded with tax dollars, they are not formally a legal part of any state, county or municipal government, rather they (generally) exist as 501c3 non-profit corporations.
Most significantly (with regard to leasing), a charter school's continued government funding is subject to periodic review and renewal by the chartering authority.
Taxpayer funding is only "guaranteed" to be available for the term of the current charter renewal period and while the school remains in compliance with its charter contract commitments with the state and local authorities.
Three Important Considerations for Charter School Leasing:
- Charter school lease terms cannot exceed the current charter renewal; and
- Lease contracts for charter schools do not include non-appropriation of funds language, rather charter school leases are "firm term" obligations; and
- Charter school lease are priced at our "non-profit" rates. (Non-profit interest rates are well below commercial interest rates, but somewhat higher than municipal rates)
Private School Leasing
Private schools fall into two general categories; those that exist as non-government, non-profit schools (501c3 corporations) including church affiliated schools (e.g. a Catholic school, or college), AND private, for profit schools--treated like any commercial business entity.
Private School Leasing - Summarized:
- Non-profit, non-government private schools would be eligible to lease vehicles and equipment at our non-profit rates (below commercial, above municipal). Non-appropriations language is not applicable.
- For profit, non-government schools would be eligible to lease vehicles and equipment at our commercial (business) rates. Non-appropriations language would not apply.
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency!
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Just keep checking out the FAQ's here, or call!
Do You Have Public, Private or Charter School Leasing Questions?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for School Leasing)
Are Leases Really All the Same?
Here are 10 things you should consider when comparing a First Capital 
municipal leasing offer to any other. Any one of these factors, even the smallest variations, can make a significant difference in the final amount your government ends up spending over the course of your municipal lease. Consider:
- Actual Amount Being Financed
- Lease Execution Date
- First Payment Due Date
- Required Down Payments
- Points & "Hidden" Fees
- Bank Compensating Balance Requirements
- Periodic Rate Resets or Rates That Float
- Debt vs. Our Non-Debt Structure
- End-of-Lease Residuals & Buyouts
- Lease Pre-Payment Options
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today, you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency!
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Do You Have Questions About Comparing Leases?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Government & Municipal Leasing)
Can We Finance Used Vehicles & Equipment with a Municipal Lease?
Sure thing! The term we can offer may be reduced slightly in accordance with the age (and reasonably anticipated useful life of the equipment or equipment) at the start and at the end of the lease (compared to brand new equipment)
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (what’s the downside of seeing a 100% no-obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Just keep reading here on Municipal-Leasing.com, or call us now!
Do You Have Questions About Used Equipment or Vehicle Financing?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Government Leasing)
Note: Municipal leasing is not available for used high-tech and electronics, e.g. computers, copiers, communications gear, etc. (nor is it available for supplies or other consumables)
Municipal Bonds, Municipal Leases and Balance Sheet Debt.
Bonds and their associated "covenants," almost always create a municipal obligation that is legally backed by the "full faith and credit" of your government. That's a bit of "legalese" that means your government is making an unconditional promise to pay the bond--up to and including raising taxes as required to do so. (That is debt by definition, and it must be recorded as debt on the balance sheet) This can get ugly if things don't go as planned fiscally.
The vast majority of our municipal leases contain what is called "non-appropriation of funds" language. Non-appropriation (aka "funding out") language makes the payment of the lease subject to the availability of funds in each budget year.
If the funds to pay a municipal lease are not available in any subsequent budget year, for any legal reason, the government entity has the legal prerogative to return the equipment to our bank and terminate the lease.
For most jurisdictions, this is the difference between a incurring debt and incurring an expense.
IMPORTANT NOTE: *This is a very abbreviated explanation of a complicated question. You should seek the the guidance of your own accounting, tax and legal counsel on such matters.
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Just keep reading here on Municipal-Leasing.com, or call us now!
Do You Have Municipal Leasing vs. Debt Questions?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Municipal -- Lease vs. Debt )
*IMPORTANT NOTES:
1) This discussion above is intended as a non-technical/non-legal "overview" only.
2) First Capital Equipment Leasing Corp. ("FCELC”) acts for its own interest only. FCELC does not act as a municipal advisor, municipal financial consultant, fiduciary or agent to any person or entity pursuant to Section 15B of the Securities Exchange Act of 1934 and the municipal advisor rules of the SEC. FCELC is not recommending that you take an action with respect to the information contained on this page or this website. You should review and discuss anything presented herein with such independent financial, tax, legal and other advisors as you deem appropriate.
Why Not Use a Municipal Bond or Go to Our Bank?
The laws in most localities generally make it impossible for state, county & municipal governments to borrow (incur balance sheet debt ) that extends over multiple budget (fiscal) periods. Until those future budgets are formally approved and voted into law, the current governing body has no legal authority to bind a future governing body into making those future lease payments. Due to these special constraints, the unique and non-traditional paperwork, the extremely low interest rate yields, the non-appropriation risks--municipal leasing has become something of a financial specialty area. For many bankers municipal leasing simply isn't their "cup of tea."
Bonds are very complicated legal documents (read: expensive, time consuming, loaded with legal, issuance and compliance costs and a measure of interest rate risk). Bonds are generally reserved for the largest 7-8 figure projects like sewers, roads, bridges and building/construction projects, etc. Bonds are backed by "the full faith and credit" of the municipal borrower. "Full faith and credit" means that those bonds create balance sheet debt and that matters. Bond covenants generally stipulate that if the municipal budget falls short, the municipal borrower will be required to raise taxes as necessary to cover the obligation. This has the ability to "reach into the pockets" of every tax-payer in the jurisdiction and can get a bit ugly.
There are VAST DIFFERENCES between a municipal lease that comes with non-appropriation provisions and bonds that create balance sheet debt.
Get a Municipal Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We’ve Got You Covered!
Do You Have Municipal Leasing vs. Bond vs. Bank Questions?
Call Now! 800-541-0114
(On your phone? Click to call! Press x-15 for Govt. Lease vs. Bond Questions)
IMPORTANT NOTES:
1) The discussion above is intended as a non-technical/non-legal "overview" only.
2) First Capital Equipment Leasing Corporation ("FCELC”) acts for its own interest only. FCELC does not act as a municipal advisor, municipal financial consultant, fiduciary or agent to any person or entity pursuant to Section 15B of the Securities Exchange Act of 1934 and the municipal advisor rules of the SEC. FCELC is not recommending that you take an action with respect to the information contained on this page or this website. You should review and discuss anything presented herein with such independent financial, tax, legal and other advisors as you deem appropriate.
How Does a VFD "Qualify" for Government Leasing Rates?
Under IRS rules a volunteer fire department must be a non-profit corporation (a 501c3) AND can use very low tax exempt-municipal leasing rates to acquire new or used fire trucks ("equipment that puts out fires") and/or fire houses or fire stations new or renovated) -- but nothing else)
To be IRS "qualified," the Volunteer Fire Department must have the following:
A written agreement to provide firefighting services with the city/town/county it services, and;
Be the only provider of firefighting services in that area OR have provided fire-fighting services continuously since 1981. (Even if there is another firefighting group that covers the same area, your VFD can still qualify if it has been operating since 1981.
If the volunteer fire department is qualified as described above, the IRS further requires that the VFD to also provide the following:
1. Publish a notice in a local newspaper and have a meeting no sooner than 14 days later to allow any person opposed to the purchase to have an opportunity to be heard, and;
2. Provide "proof of publication" (copy of the newspaper notice)
3. Provide a resolution by the government entity confirming that the Volunteer Fire Department provides fire-fighting services to them.
4. Provide a copy of the VFD's agreement with the government entity (city/county/town) to provide firefighting services (if available).
5. Provide a resolution from the VFD confirming that the lease purchase was formally authorized at a meeting and the official title of the person(s) authorized to sign the lease agreement on behalf of the Fire Department[/expand]
Complete detailed instruction and suggested wording are include with VFD municipal leasing application. There are several steps to the qualification process (it is the IRS, after all); but the interest rate savings over a period of years can be very substantial if your VFD qualifies.
Get a Volunteer Fire Department Leasing Quote Now
Let us prepare a quick quote now on any combination equipment & terms. We can have real numbers on your desk today–you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency! (What’s the downside of seeing a real, no obligation quote?)
And whenever you're ready, we’ll put it all together for you in a matter of days, not weeks or months.
We've Got You Covered!
Do You Have Questions About Volunteer Fire Department Leasing?
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Volunteer Fire Departments)
NOTE: We only offer municipal leasing options on VFD transactions over $125,000. Other programs available for transactions under $125,000.
We’ve Got You Covered!
Just keep reading here in the Municipal-Leasing.com FAQ’s section or
Call Now 800-541-0114
(Using your phone? Click to call! Press ext. 15 for Government & Municipal Leasing)
