Capital Leases
Closing the Financing Gap
Address critical funding gaps by utilizing sales tax exemptions on construction materials to move your project from “planned” to “underrway”.
How It Works
Under Ohio law, the Port can utilize a capital lease structure to exempt sales tax on materials used in construction, significantly reducing the project’s “hard costs.”
The Mission
This tool is specifically designed for gap filling, helping high-impact projects overcome the rising costs of materials and labor.
Project Viability
The Port utilizes its statutory authority to own a project site during construction, providing a sales tax exemption on construction materials.
Gap Completion
Rather than focusing on investor returns, this tool is intended to offset the rising costs of labor and materials, ensuring the total project cost aligns with available capital.
Preserved Benefits
The structure is non-invasive to your existing capital stack; the developer retains all benefits of ownership, including depreciation and federal tax credits.
Used For
- Large-scale new construction.
- Major historic renovations where material costs are a significant part of the budget.
Not Used For
- Small-scale repairs
- Projects where the Port is not a primary financing partner
