Financing Partners

NCL Government Capital
Chris Carey
(320) 763-7600
chrisc@nclgovcap.com
https://nclgovcap.com/

Centennial National Financial Group
Tim David
303-550-4053
tdavid@centernnialnfg.com
https://centennialnfg.com/

First Government Lease Co.
Dean Palmer
866-793-9670
www.firstgovernment.com

Leasing 2, Inc.
Rick Carney
813-431-1286
rcarney@leasing2.com
https://leasing2.com/

Republic First National
Kelly Fox
763-229-7105
kelly@rfnonline.com
https://www.republicfirstnational.com/

1. What is a Tax-Exempt Lease?

Tax-exempt lease financing is one of the most successful methods used to purchase vehicles, aircraft, communications and other equipment. This type of installment purchase is also referred to as “government lease-purchase” and/or a “municipal lease”. The interest earned under a properly structured and documented lease is exempt from federal income tax under the same tax laws that enable a municipal bond to carry a tax-exempt rate. Because the Lessor does not pay federal tax on the interest earned, a tax-exempt lease provides a much lower interest rate to the municipality than other types of borrowing instruments.

2. What types of municipalities qualify for tax-exempt financing?

Cities, Counties, School Districts, Townships, Villages, Police Departments, Fire Departments, Special Purpose Districts and any other governmental entity

3. What can be financed on a tax-exempt basis?

The list varies for each entity. Here is just the beginning….

  • Real Property–Fire Stations, Truck Bays, Command Centers, Training Facilities
  • Fire Apparatus–Pumpers, Aerials, Tankers, Ladder Trucks, Tower Trucks, Brush Trucks, Rescue Squad Trucks, Fire Trucks, Quick Attack Vehicles, Ambulances, Boats
  • Loose Equipment–SCBA, Thermal Imaging Cameras, Spreaders, Air Tools, Extrication Equipment, Fire Hose, Defibrillators, Generators, Radios, Pagers, 911 Systems

4. Who owns the equipment under a tax-exempt lease?

In most states the Lessee takes title to the equipment or deed for the property at the beginning of the lease. The Lessor takes a security interest in the equipment or property as collateral. The Lessee is responsible for the use, maintenance and insuring of the equipment or property

5. Can used equipment be financed?

Yes! Used and refurbished fire trucks and equipment can be financed just like new equipment as long as the term of the financing does not exceed the useful life of the equipment