Common use of Treatment for Tax Purposes Clause in Contracts

Treatment for Tax Purposes. To the maximum extent permitted by Law, Developer shall be treated as the owner for federal income tax purposes of such portion of the Project for which Developer is not reimbursed its total capital improvement costs by the TMC Public Funds Payment or (if applicable) the Public Funds Payments. The payment of the TMC Public Funds Payment and (if applicable) the Public Funds Payments by TxDOT to Developer is reimbursement of the portion of Developer’s total capital improvement costs of the Project that are expended by Developer on behalf of, and for the benefit of, TxDOT and shall not be treated as compensation or consideration of any kind paid by TxDOT to Developer for federal income tax purposes. TxDOT will not file any documentation with the United States government inconsistent with this Section 2.5.