Tax-Exempt Municipal Financing

Leverage your Tax-Exempt Status

Municipal financing is offered to state and local government municipalities as a vehicle for acquiring assets through a tax-free municipal lease offering. The lease payments include the return of principal and interest, with the interest exempt from federal income taxation. This tax savings is offered to the agencies in a lower interest rate. A municipal lease is frequently the least expensive method of financing equipment.

The other 2 key differences in municipal financing

  • In a municipal lease, title of the equipment occurs immediately. The financing is a full payout with no residual or balloon payments at the end of the lease
  • The Municipal Lease provides for termination without penalty for non-appropriation of funds by the Government Agency. It is like a loan with an annual out clause

Keys to a Better Purchase Program

This is not a traditional purchase program.  It is specifically designed for public entities with their legal requirements.  If you think your agency cannot participate,  please watch the video to learn more.

Here are the highlights:

  • Non-Appropriation clause included.  Think of this as an annual out clause and as a result, voter approval is not required.
  • This program maximizes budgets.  The total asset cost doesn't need to fit into the budget, just the annual payments, which can multiply purchasing power by 5 times!
  • Simple and fast same day approval process.
  • Zero down, no payments upfront.
  • No debt created so you can pay with the operating budget.
  • Ownership of asset takes place up front.  No residual or buyout at the end.

Frequently Asked Questions

Why choose municipal financing?

Who is eligible for Municipal financing?

What types of equipment/assets can be financed?

How does the process work?