MACRS Deductions definition
MACRS Deductions means the deductions under Section 167 of the Internal Revenue Code of 1986, as now or hereafter amended (the “Code”), determined in accordance with the modified Accelerated Cost Recovery System with respect to the Total Invoice Cost of any item of the Equipment using the accelerated method set forth in Section 168(b)(1) or 168(b)(2) of the Code as in effect on the date of this Lease for property assigned to the class of property specified in the Schedule pertaining thereto; “Lessor” shall be deemed to include the consolidated Federal taxpayer group of which Lessor is a member; and “Tax Indemnification Payment” shall mean such amount as, after consideration of (i) all taxes required to be paid by Lessor in respect of the receipt thereof under the laws of any governmental or taxing authority in the United States, and (ii) the amount of any interest or penalty which may be payable by Lessor in connection with the Loss, shall be required to cause Lessor’s after-tax net return (the “Net Return”) to be equal to, but no greater than, the Net Return computed consistently with current tax laws (and with the assumption that Lessor is taxed at the highest marginal Federal and state tax rates) as of the date of this Lease that would have been available to Lessor had the Loss not occurred.
MACRS Deductions means the deductions under Section 167 of the Code, determined in accordance with the modified Accelerated Cost Recovery System with respect to the Total Cost of any item of the Equipment using the accelerated method set forth in Section 168(b)(1) or 168(b)(2) of the Code as in effect on the date of this Lease for property assigned to the 5-year class of property and taking into account the special depreciation allowance and basis adjustment under Section 168(k)(1) of the Code.
MACRS Deductions means cost recovery deductions for 100% of the cost of the Aircraft pursuant to Section 168(b) of the Internal Revenue Code of 1986, as amended (the "Code"), commencing in 1999, computed (a) on the basis that the Aircraft is "7-year property" within the meaning of Section 168(e) of the Code), (b) by using the 200% declining balance method over a seven (7) year recovery period, switching to the straight-line method for the first taxable year of the Indemnitee during the term for * CONFIDENTIAL TREATMENT REQUESTED which such method yields a larger allowance, (c) assuming salvage value is zero, and (d) using a half-year convention. SPECIAL TAX INDEMNITY: MACRS Deductions Indemnity Lessee will on demand pay and indemnify each Tax Indemnitee for any loss, disallowance, or deferral of, or delay in claiming the MACRS Deductions resulting from Lessee's using the Aircraft in such a manner as to cause the Aircraft to be treated as "used predominantly outside the United States" within the meaning of Section 168(g) of the Code (hereinafter referred to as a "MACRS Loss"). In determining the indemnity required in connection with a MACRS Loss to the Tax Indemnitee under this Clause, the Tax Indemnitees shall be assumed to be subject to a combined U.S. and state income tax rate of (after giving effect to the deductibility of such state income taxes for U.S. income tax purposes) 38% in 1999 and in each year thereafter (the "Assumed Tax Rate"), and the Tax Indemnitee will have sufficient taxable income to be taxed at the Assumed Tax Rate after full utilization of the MACRS Deductions. The amount payable under this indemnity shall be the amounts required from time to time, which, after deduction by the Tax Indemnitee of the amount of all additional U.S., state, local, and foreign taxes required to be paid by Tax Indemnitee in respect of the receipt or accrual of such amount, will equal the increase in income taxes payable by (or not refundable to) Tax Indemnitee as the result of such MACRS Loss, plus the amount of any actual interest, penalties, and additions to tax payable by Tax Indemnitee with respect to such MACRS Loss. If, as the result of a MACRS Loss, the amount of the U.S. income taxes payable by an Tax Indemnitee for any taxable year shall be less than the amount of such taxes that would have been payable by the Tax Indemnitee had such MACRS Loss not occurred (or as the result thereof, an Tax Indemnitee shall receive a refund of U.S. income taxes payable that shall ...
Examples of MACRS Deductions in a sentence
The MACRS Deductions, State Depreciation Deductions and Interest Deductions are hereinafter collectively referred to as the "Tax Benefits".
The groups do not differ in Post-service Conflict for those completing CEs. The groups do not differ in Post-service Conflict by settlement or return rates.
Lessor acknowledges that Lessee has the right to claim certain economic benefits available to it under the Internal Revenue Code of 1986, as amended from time to time (the "Code"), and/or under equivalent state income tax laws, based upon depreciable lives of the Units, averaging conventions, methods of depreciation and other such methods as Lessee elects for income tax purposes (the "MACRS Deductions").
Lessor has assumed that MACRS Deductions (as defined in Schedule B) shall be available to Lessor in respect of the leasing of the Engine and that no more than ten percent (10%) of any items of income, deduction, or loss in respect of the Engine or the leasing thereof will be from foreign sources.
NEF is relying on its ability to utilize MACRS Deductions (as defined below) with respect to the Equipment.
More Definitions of MACRS Deductions
MACRS Deductions means cost recovery deductions for *% of the Lessor's cost of the Aircraft pursuant to Section 168(b) of the Internal Revenue Code of 1986, as amended, commencing in the year 2000, computed (i) on the basis that the Aircraft is "7-year property" (within the meaning of Section 168(e) of the Code), (ii) by using the *% declining balance method over a 7 year recovery period, switching to the straight-line method for the first taxable year of the Lessor during the term for which such method yields a larger allowance, (iii) assuming salvage value is zero, (iv) using a half-year convention and (v) assuming that the Aircraft is sold at the end of the Term of * months.
MACRS Deductions means the deductions under Section 167 of the Internal Revenue Code of 1986, as now or hereafter amended (the "Code") determined in accordance with the modified Accelerated Cost Recovery System with respect to the Total Invoice Cost of any item of the Equipment using the accelerated method set forth in Section 168(b)(1) or 168(b)(2) of the or (iii) the enactment or promulgation of any change in the Code as in effect on the date of this Lease for property assigned to the class of property specified in the Equipment Schedule pertaining thereto; "Lessor" shall be deemed to include the consolidated Federal taxpayer group of which Lessor is a member; and "Tax Indemnification Payment" shall mean such amount as, after consideration of (i) all taxes required to be paid by Lessor in respect of the receipt thereof under the laws of any governmental or taxing authority in the United States, and (ii) the amount of any interest or penalty which may be payable by Lessor in connection with the Loss, shall be required to cause Lessor's after-tax net return (the "Net Return") to be equal to, but no greater than, the Net Return computed consistently with current tax laws (and with the assumption that Lessor is taxed at the highest marginal Federal and state tax rates) as of the date of this Lease that would have been available to Lessor had the Loss not occurred.
MACRS Deductions means the deductions under Section 167 of the Internal Revenue Code of 1986, as now or hereafter amended (the “Code”), determined in accordance with the modified Accelerated Cost Recovery System with respect to the cost of any item of the Equipment using the accelerated method set forth in Section 168(b)(1) or 168(b)(2) of the Code as in effect on the date of the lease for property assigned to the 3-year class of property. For purposes hereof, “We”, “Us” and “Our” shall be deemed to include the consolidated Federal taxpayer group of which We are a member; and “Tax Indemnification Payment” shall mean such amount as, after consideration of (i) all taxes required to be paid by Us in respect of the receipt thereof under the laws of any governmental or taxing authority in the United States, and (ii) the amount of any interest or penalty (due solely to Your acts or omissions) which may be payable by Us in connection with the Loss, shall be required to cause Our after-tax net return (the “Net Return”) to be equal to, but no greater than, the Net Return computed consistently with current tax laws (and with the assumption that We are taxed at the highest marginal Federal and state tax rates) as of the date of the lease that would have been available to Us had the Loss not occurred. If we obtain any refund, rebate or other payment on account of any taxes paid by You pursuant hereto. We shall, to the extent we can identify such rebate, refund or payment as attributable to Your Equipment, promptly pay such amount to You. The indemnities provided for under this Section 15 shall continue even after the term of this lease has expired.
MACRS Deductions means the deductions under Section 167 of the Internal Revenue Code of 1986, as now or hereafter amended (the "Code"), determined in accordance with the modified Accelerated Cost Recovery System with respect to the Total Cost of any item of the Cars using the accelerated method set forth in Section 168(b)(1) of the Code as in effect on the date of this Lease for property assigned to the 7-year class of property; "Lessor" shall be deemed to include the consolidated Federal taxpayer group of which Lessor or any Assignee (as applicable) is a member; and "Tax Indemnification Payment" shall mean such amount as, after consideration of (i) all taxes required to be paid by Lessor in respect of the receipt thereof under the laws of any governmental or taxing authority in the United States, and (ii) the amount of any interest or penalty which may be payable by Lessor in connection with the Loss, shall be required to cause Lessor's after-tax net return, calculated using the same assumptions used by Lessor to calculate the rent specified for the affected Cars on the date of the Schedule in which such Cars are listed except to the extent that the Loss changes (or any prior Loss changed) any of those assumptions, (the "Net Return") to be equal to, but no greater than, the Net Return computed consistently with current tax laws (and with the assumption that Lessor is taxed at the highest marginal Federal and state tax rates) as of the date of this Lease that would have been available to Lessor had the Loss not occurred.
MACRS Deductions means with respect to any Car the deductions under Section 167 of the Internal Revenue Code of 1986, as now or hereafter amended (the "Code"), commencing in the taxable year in which the Funding Date for such Car occurs, determined in accordance with the modified Accelerated Cost Recovery System with respect to the Total Cost of such Car using the accelerated method set forth in Section 168(b)(1) of the Code as in effect on the date of this Lease for property assigned to the 7-year class of property; "Lessor" shall be deemed to include the consolidated Federal taxpayer group of which Lessor or any Assignee (as applicable) is a member; and "Tax Indemnification Payment" shall mean such amount as, after consideration of (i) all taxes required to be paid by Lessor in respect of the receipt thereof under the laws of any governmental or taxing authority in the United States, and (ii) the amount of any interest or penalty which may be payable by Lessor in connection with the Loss, shall be required to cause Lessor's after-tax net return, calculated using the same assumptions used by Lessor to calculate the Basic Rent specified for the affected Cars on the date of the Equipment Schedule in which such Cars are listed except to the extent that the Loss changes (or any prior Loss changed) any of those assumptions, (the "Net Return") to be equal to, but no greater than, the Net Return computed consistently with current tax laws (and with the assumption that Lessor is taxed at the highest marginal Federal and state tax rates) as of the date of this Lease that would have been available to Lessor had the Loss not occurred.
MACRS Deductions means the deductions under Section 167 of the Internal Revenue Code of 1986, as now or hereafter amended (the “Code”), determined in accordance with the modified Accelerated Cost Recovery System with respect to the Total Invoice Cost of any item of the Equipment using the accelerated method set forth in Section 168(b)(1) or 168(b)(2) of the Code as in effect on the date of this Lease for property assigned to the class of property specified in the Schedule pertaining thereto and taking into account, unless otherwise stated on such Schedule, the fifty (50) percent special depreciation allowance and basis adjustment under Section 168(k)(1) of the Code; “Lessor” shall be deemed to include the consolidated Federal taxpayer group of which Lessor is a member; and “Tax Indemnification Payment” shall mean such amount as, after consideration of (i) all taxes required to be paid by Lessor in respect of the receipt thereof under the laws of any governmental or taxing authority in the United States, and (ii) the amount of any interest or penalty which may be payable by Lessor in connection with the Loss, shall be required to cause Lessor’s after-tax net return (the “Net Return”) to be equal to, but no greater than, the Net Return computed consistently with current tax laws (and with the assumption that Lessor is taxed at the highest marginal Federal and state tax rates) as of the date of this Lease that would have been available to Lessor had the Loss not occurred.
MACRS Deductions means the deductions under Section 167 of the Code, determined in accordance with the modified Accelerated Cost Recovery System with respect to the cost of any item of the Equipment using the accelerated method set forth in Sections 168(b)(1) or 168(b)(2) of the Code as in effect on the date of this Master Equipment Lease for property assigned to the class of property specified in the Schedule pertaining thereto. Lessee agrees not to do anything to impair or lessen the value of Lessor’s anticipated tax benefits related to the Equipment and expressly agrees that Claims under the indemnity provided in Section 15 hereof shall include: (a) any disallowance, elimination, recapture, reduction or disqualification, in whole or in part, of any tax benefits of Lessor incurred as a result of any act or omission or misrepresentation of Lessee; and (b) any additional tax for which Lessor becomes liable as a result of Lessee having added an attach ment or made an alteration to the Equipment, including (without limitation) any such attachment or alteration which would increase the productivity or capability of the Equipment so as to violate the provisions of Rev. Proc. 2001-28, 2001-1 C.B. 1156 (as it may hereafter be modified or superseded); hereinafter referred to as a “Loss”. If Lessor suffers a Loss, Lessee shall pay to Lessor as additional Rent on the next succeeding rental payment date after Lessor delivers to Lessee written notice of a Loss, or if there is no such date, within thirty (30) days after such notice, the amount which, after deduction of all taxes, interest, additions to tax and penalties that have been or will be required to be paid by Lessor at the highest marginal corporate income or franchise tax rates under all applicable federal, state and local laws, regulations and ordinances, will preserve the Net Economic Return that would have been realized by Lessor had such Loss not occurred. In the case of a Loss resulting from Lessor’s inability to offset, for federal or local income or state franchise tax purposes, income taxable at a rate equal to Lessor’s highest marginal corporate tax rate, basic Rent for the related Schedule shall be adjusted to preserve the Net Economic Return. “Net Economic Return” means the maintenance, at a minimum, of Lessor’s (i) after-tax yield (ii) after-tax aggregate cash flows, and (iii) return on assets as computed by Lessor as of the date of the execution of the applicable Schedule. All of Lessor’s rights and privileges a...