Tax-Exempt Equipment Lease-Purchase

What is it?

DirectLenderMatch classifies Tax-Exempt Equipment Lease-Purchase under the financing form “Tax-exempt lease.” Its typical use in this directory is: Finance municipal/public equipment.

How does it work?

The structure is generally evaluated, supported, or secured using the following basis: Public-purpose equipment. Exact underwriting, eligibility, terms, and availability are provider-specific and can change.

What can it be used for?

Finance municipal/public equipment.

What backs or supports it?

Public-purpose equipment.

Why does this structure exist?

This structure provides a defined way to address the financing need described above. The provider, transaction, collateral, and underwriting context determine how the structure is implemented in practice.

Important considerations

Confirm current costs, risks, licensing, eligibility, collateral treatment, recourse, tax consequences, and availability directly with the provider and appropriate professional advisers. DirectLenderMatch does not compare rates or recommend products.

Is this actually a loan?

Financing, not a conventional loan

Workbook classification: No. Financing forms such as leases, purchases, shared equity, advances, and guarantees may solve a funding need without being conventional loans.

Verified lenders or providers

Direct government-finance provider

Key Government Finance, Inc.

Key Government Finance currently provides tax-exempt and taxable lease-purchase financing for governmental entities.

Official evidence page →

Last verified: 2026-08-23