Tenn. Comp. R. & Regs. 1200-13-08-.11
On a new lease negotiated after December 31, 1977, and renewal of such lease, the lesser of rent on real property or equipment or the amount of the lessor's depreciation, interest, other allowable costs, and return on equity capital, (for approved capital expenditures excluding expenses not considered allowable) in accordance with Rule 1200-138-.10, will be considered an allowable cost. Renewal of a lease negotiated before January 1, 1978, at the same rental amount or at an amount fixed or determinable according to conditions provided for in the original lease will not be considered a new lease according to this provision. This provision does not apply to the rental of equipment for periods of less than one year.
Tenn. Comp. R. & Regs. 1200-13-08-.11
Authority: T.C.A. §§ 4-5-202, 71-5-105, and 71-5-109.