What is a tax-exempt municipal lease?
A tax-exempt municipal lease is offered only to state and local governments and their political subdivisions. They are structured as lease/purchases or conditional sales, both of which result in ownership by the government at lease end. Tax-exempt leases are typically far easier to execute than municipal bonds, as no bond referendum is required. Leases can be short or long, from one year to 10 years and beyond. The size of a municipal lease is virtually limitless, as is the range of equipment that can be leased.
Why do I need ePlus as a partner to lease to state and local governments?
Leasing to state and local government agencies entails a substantial degree of complexity and risk beyond that of conventional commercial leasing. Municipal governments have termination rights and tax consequences not faced in commercial leases. ePlus understands these risks and has spent years developing programs that will minimize risks to the vendor and thus maximize the vendor's opportunity to book the transaction as a sale.
My firm has an in-house leasing company – can we still work with ePlus?
Yes! Many of ePlus' larger clients have in-house finance companies, most of which are established to support commercial leasing. This commercial leasing expertise does not necessarily translate to the state and local arena, as municipal leasing requires a specialized understanding of tax laws, government risks and requirements, all of which may vary by state. ePlus has broad and deep expertise in the municipal marketplace, as well as many years experience successfully structuring and completing municipal leases.
How do I contact ePlus to start the leasing process?
Contact our Municipal Leasing Program Manager Steve Bland, at: sbland@eplus.com or call 919-326-3630.
