Page:United States Statutes at Large Volume 98 Part 1.djvu/567

 PUBLIC LAW 98-369—JULY 18, 1984 "(1) IN GENERAL.—A contract which purports to be a service contract shall be treated as a lease of property if such contract is properly treated as a lease of property, taking into account all relevant factors including whether or not— "(A) the service recipient is in physical possession of the property, "(B) the service recipient controls the property, "(C) the service recipient has a significant economic or possessory interest in the property, "(D) the service provider does not bear any risk of substantially diminished receipts or substantially increased expenditures if there is nonperformance under the contract, "(E) the service provider does not use the property concurrently to provide significant services to entities unrelated to the service recipient, and "(F) the total contract price does not substantially exceed the rental value of the property for the contract period. "(2) OTHER ARRANGEMENTS.—An arrangement (including a

partnership or other pass-thru entity) which is not described in paragraph (1) shall be treated as a lease if such arrangement is properly treated as a lease, taking into account all relevant factors including factors similar to those set forth in paragraph (1). "(3) SPECIAL RULES FOR CONTRACTS OR ARRANGEMENTS INVOLVING SOLID WASTE DISPOSAL, ENERGY, AND CLEAN WATER FACILITIES.—

"(A) IN GENERAL.—Notwithstanding paragraphs (1) and (2), and except as provided in paragraph (4), any contract or arrangement between a service provider and a service re' cipient— "(i) with respect to— "(I) the operation of a qualified solid waste disposal facility, .'!!.. i jc "(ij) the sale to the service recipient of electrical or thermal energy produced at a cogeneration or i^AF; *' alternative energy facility, or "(III) the operation of a water treatment works • facility, and "(ii) which purports to be a service contract, shall be treated as a service contract. "(B) QUALIFIED SOLID WASTE DISPOSAL FACILITY.—For purposes of subparagraph (A), the term 'qualified solid waste disposal facility' means any facility if such facility provides solid waste disposal services for residents of part or all of 1 or more governmental units and substantially all of the solid waste processed at such facility is collected from the general public. "(C) COGENERATION FACILITY.—For purposes of subpara-

graph (A), the term 'cogeneration facility means a facility which uses the same energy source for the sequential generation of electrical or mechanical power in combination with steam, heat, or other forms of useful energy. "(D) ALTERNATIVE ENERGY FACILITY.—For purposes of subparagraph (A), the term 'alternative energy facility' means a facility for producing electrical or thermal energy if the

98 STAT. 519

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