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(38) “true lease” means a lease other than one under which

(A) ownership of the property is transferred to the lessee under the terms of the lease by the end of the lease term;

(B) the lease grants an option to buy the property at a price less than the fair market value of the property;

(C) the lease term is 75 percent or more of the estimated economic life of the property; or

(D) the present value of the total payments made by the lessee under the lease is 90 percent or more of the fair market value of the property, less the amount of investment tax credits to be retained by the lessor under 26 U.S.C. 38 during the term of the lease, the valuation date for this purpose is the date of the lease agreement or the date of a commitment to enter into a lease agreement, whichever is earlier. (Eff. 7/21/2002, Register 163; am 6/24/2004, Register 170; am 10/16/2012, Register 204; am 4/24/2020, Register 234) Statutory Authority: Authority: AS 18.05.040 AS 44.30.020 AS 47.30.530

AS 18.08.010 AS 47.05.010 AS 47.37.030

AS 18.08.080 AS 47.06.010 AS 47.37.045

AS 18.25.100 AS 47.20.075 AS 47.40.041

AS 18.28.010 AS 47.20.110 AS 47.40.120

AS 18.28.050 AS 47.27.005 AS 47.80.130

AS 29.60.600 AS 47.27.050

AS 44.29.020 AS 47.30.477 Editor’s note: Effective July 1, 2022, Executive Order 121 split the former Department of Health and Social Services into the Department of Health and the Department of Family and Community Services. As of Register 242 (July 2022), the regulations attorney made conforming technical revisions under sec. 138, E.O. 121 and AS 44.62.125(b)(6), to the definitions of “commissioner” and “department” in 7 AAC 78.950. In addition, the regulations attorney made conforming changes to the authority citation to add