Commonwealth of Virginia Department of the Treasury As of December 1, 2008
Master Equipment Leasing Program
History: The Master Equipment Leasing Program began in 1987 in response to growing concern
about the coordination of leasing activity of Commonwealth agencies and institutions. In 1997,
the Master Equipment Leasing Program was expanded to incorporate financing for energy
efficiency projects in addition to equipment.
Purpose: The Master Equipment Leasing Program ensures that all Commonwealth agencies
obtain consistent and competitive credit terms for financing equipment and energy efficiency
Code Reference: Section 2.2-2417
• Eligibility for Financing
- Eligible Agencies: All administrative units of State government, including agencies,
departments, institutions, commissions, boards, councils, authorities, or other such
- Personal Property: Personal property is defined as new or reconditioned tangible
personal property that includes personal property to be affixed to realty and must be used
for governmental purposes.
- Energy Projects: Energy efficiency projects may include personal property, the
installation or modification of an installation in a building, professional management, and
other special services which are primarily intended to reduce energy consumption and
demand or allow the use of an alternative energy source.
- Minimum Amount: Credit purchases less than $10,000 are not eligible for financing
through the Master Equipment Leasing Program.
- “Soft” Costs: Soft costs are defined as installation, shipping and handling, maintenance,
etc. Soft costs are typically not included in equipment financings. Energy projects, by
definition, include a soft cost component.
- Software: As a general rule, software alone cannot be financed through this program
since it involves a license agreement and is not considered personal property of the user.
Software purchased in conj