YES! A volunteer fire department (VFD) can use the same low tax exempt-municipal leasing rates as government entities, but specifically for new or used fire trucks (“equipment that puts out fires”) or fire stations– new, used or renovated. But nothing else e.g. turnout gear, rescue tools, radios or command vehicles–all of which can be financed at low non-profit rates, just not at municipal government rates.
To be “IRS qualified,” the VFD must also be a 501c3 corporation and be able to document the following:
1. A written agreement to provide firefighting services with the city, town or county it services, and;
2. Be the only provider of firefighting services in that area OR have provided fire-fighting services to that area continuously since 1981. (Even if there is another firefighting group that covers the same area, your VFD can still qualify if it has been operating since 1981.
If the volunteer fire department is qualified as described above, the IRS requires that the VFD provide the following: [expand title=”Additional IRS-required documentation:” trigpos=” following:”]
1. Publish a notice in a local newspaper and have a meeting no sooner than 14 days later to allow any person opposed to the purchase to have an opportunity to be heard, and;
2. Provide “proof of publication” (copy of the newspaper notice)
3. Provide a resolution by the government entity confirming that the Volunteer Fire Department provides fire-fighting services to them.
4. Provide a copy of the VFD’s agreement with the government entity (city, town, or county) to provide firefighting services (if available).
5. Provide a resolution from the VFD confirming that the lease-purchase was formally authorized at a meeting and the official title of the person(s) authorized to sign the lease agreement on behalf of the Fire Department.[/expand]
The complete instructions are included with our VFD Leasing Application. There are several steps to the qualification process (it is the IRS, after all), but most chiefs tell us the interest rate savings over the years, make it well worthwhile if you can qualify.
Do You Have Questions About Volunteer Fire Department Leasing?
Call Now 800-541-0114 x-22
(Using your phone? Click to call! Press ext. 22 for Volunteer Fire Departments)
NOTE: We only offer municipal lease pricing on VFD transactions over $125,000. Other programs are available for transactions under $125,000.