Tax Lease Clause Samples
A Tax Lease is a contractual provision in which the lessor, rather than the lessee, retains the tax benefits associated with ownership of the leased asset, such as depreciation and investment tax credits. In practice, this means the lessor claims these tax deductions on their own tax returns, while the lessee typically pays lower lease payments as a result. The core function of a Tax Lease is to allocate tax advantages to the party best positioned to use them, thereby reducing overall costs and making the lease arrangement more financially efficient for both parties.
Tax Lease. 16.1.1 The Lender Finance Parties agree that the Loan may be refinanced to incorporate a lease financing structure with the prior written consent of each Lender Finance Party. Each Lender Finance Party agrees that it shall not unreasonably withhold or delay its consent to the implementation of a lease financing structure, provided that:
(a) it is satisfied that its security position will not be materially and adversely affected;
(b) it has received agreed and executed documentation acceptable to it in all respects;
(c) the lease financing structure is not, in its reasonable opinion, unduly onerous in terms of documentation and time;
(d) it has received credit approval for such lease financing; and
(e) it has received legal opinions satisfactory to it in relation to jurisdictions reasonably required by it.
Tax Lease. If checked, this Lease is not a Tax Oriented Lease and ----- the provisions of Paragraph 13 of this Lease do not apply.
Tax Lease. Lessor Is Tax Owner. Lessor is entitled to all deductions, credits, and other tax benefits that are provided in the Code to an owner of property ("Tax Benefits").
Tax Lease. Lessor is entitled to all deductions, credits, and other tax benefits that are provided in the Code to an owner of property ("Tax Benefits"). Lessee shall not take or omit to take any action that results in the disqualification of the Equipment Assets for, or recapture of, all or any portion of the Tax Benefits. If, as a result of a breach of any representation, warranty or covenant of Lessee, a Tax Owner Loss Event occurs, Lessee shall pay, as Lessor's exclusive remedy, to Lessor on demand the corresponding Tax Benefit Reimbursement Amount. Lessor and Lessee agree to treat this Agreement and the leasing of the Equipment Assets (and shall file all tax returns including amended returns and claims for refund and information reports) in a manner consistent with this Article V and Section 4.01.
Tax Lease. The Agent and the Lenders will also consider in good faith, any tax lease proposed by the Borrower (under which the Borrower or Sub-Borrower would, under California law, still be the beneficial owner of the Aircraft) that does not involve an Alternative Utilisation but which may involve a Lien on the Aircraft, and if approved by the Majority Lenders such tax lease shall be permitted hereunder and the representations, warranties and covenants in the Transaction Documents shall be deemed modified accordingly.
Tax Lease