Tax-Exempt Municipal Financing
Tax-Exempt Municipal Financing offered by CapFirst is exclusive to municipalities (ie. Counties, Cities, School Districts, etc) and by virtue of product being tax-exempt lower interest rates can be offered to the municipality.
What is a Tax-Exempt Municipal Lease?
A Tax-Exempt Municipal Lease is a conditional sales contract disguised in the form of a lease and is only available to municipalities. Under this lease type, the interest earnings on the lease are exempt from Federal Taxes. Municipal leases are usually structured with a $1.00 buyout option at the end; however, the lease also will be subject to annual appropriation by the municipality. Entities that qualify include but are not limited to: Cities, Counties, Park Districts, School Districts and Fire Districts. The determination as to what type of entity constitutes a “municipality” is that the entity must have the ability to levy taxes on its behalf. A non-profit entity (generally referred to as a 501(c)(3)) does not qualify for tax-exempt lease financing without having a municipality sponsor its financing.
The CapFirst Experience
When you work with CapFirst, you'll find equpiment finance experts who are easily accessible and get to know your business, and an independently owned company with a different approach. Whether you are looking to expand your company, purchase new equipment or make capital improvements, CapFirst offers a full array of financing products to help you grow.
CapFirst's loan policies and decisions are made locally, and you know you'll have financing to suit the unique needs of your business. We want to work with you to create a customized solution for your future. We offer competitive rates, terms and payment structures and our solutions include:
Contact one of our team members to talk about your current and future plans.