Finance Authority can own or hold title to facilities
Customers enjoy a sales tax exemption
Sales tax transaction best serves very large, creditworthy customers
Simple lease usually entails working with another governmental entity
Prevailing wage rates apply
Successful Lease-Financing Projects
   Cardinal Health
Lease-Financing Programs

We know the world’s biggest employers face daunting challenges posed by real estate decisions. Let one of our lease-financing programs put you at ease.

1) Sales Tax Transaction

Purpose

Our lease-financing tool can save you money by providing sales tax exemptions on construction materials, and take the headache out of real estate transactions.

Here’s how it works:
We issue bonds on your behalf to construct a new facility built to your specifications, and we lease it back to your company. Typical borrowers under lease transactions include large, credit-worthy clients (privately owned or publicly traded) who support large investments.

Take a look at some of the potential benefits our lease-financing clients enjoy:
  • Local and state sales tax exemptions on construction materials
  • Accounting advantages – debt off balance sheet
  • Federal tax advantages through depreciation
  • Flexibility through amortizing the debt or lease-purchase options

The tax advantages, lease options and flexible terms, such as fixed rates for up to 20 years, allow significant breathing room for your company to get down to the business of doing business, rather than haggling with real estate headaches.

2)  Simple Lease Transaction

Purpose
Our lease financing tool can remove road blocks to transactions that require a public entity to participate.

Here's how it works:
We enter into a three-party lease to facilitate transactions moving forward. Typically the other two parties need a public entity to meet some statutory requirement that the Finance Authority can help fulfill.

Some of our requirements are:

  • Investments include land, buidling or equipment leases
  • The transaction is typically structured as triple-net lease
  • The Finance Authority acts as a pass-through, holding title to the property

For more information on how our lease financing programs can help you and to see if you qualify for these innovative financing tools, email Jean Carter Ryan or call her at 614.225.6068.

 
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