The term of the lease must also extend until at least the end of the tax year that begins in the last exemption year, unless the qualified business firm will or does assume ownership of the property by such time. In certain cases where the term of a lease is technically too short, mitigating circumstances include but are not limited to where:
The firm has the option to unilaterally renew the lease; or
Retains effective prerogatives of ownership under an unconventional or nontraditional lease that serves mainly as a financial instrument; and
Would have an unfettered right to retain title to the property in the event that the lease were not mutually renewed before the expected end of the exemption period.
The owner of leased qualified property may be any person or corporation, including but not limited to a public body or an owner of the firm.
The lease agreement must effectively operate as a net lease, inasmuch as:
The firm/lessee directly pays all ad valorem taxes assessed against any qualified property covered by the lease agreement; or
The firm/lessee will compensate the owner of such property in full for the property taxes in addition to rent or other costs throughout the period of the lease.