Like-Kind Exchange

With prior FTA approval, a passenger vehicle may be traded-in or sold before the end of its minimum normal service life, if a grantee so chooses. Moreover, a grantee may elect to use the trade-in value or the sales proceeds from the vehicle to acquire a replacement vehicle of like kind. "Like-kind" means, for example, a bus for a bus with a similar service life, a rail vehicle for a rail vehicle, etc. Under the Like-Kind Exchange policy, proceeds from the vehicle sale are not returned to the FTA; instead, all proceeds must be invested in the acquisition of like-kind replacement vehicles. If sales proceeds are less than the amount of the Federal interest in the vehicle to be replaced, the grantee is responsible for providing the difference, along with the grantee's local share of the cost of the replacement vehicle.

Upcoming Terms

Limited-Purpose Foundation