FINANCE LEASE

An expression oftentimes used in the industry to refer to a capital lease or a nontax lease. Typically- a finance lease is a full-payout- noncancellable agreement- in which the lessee is responsible for maintenance- taxes and insurance. It is also a type of tax-oriented lease that was introduced by the Tax Equity and Fiscal Responsibility Act of 1982- to be effective in 1984- but later repealed by the Tax Reform Act of 1986.