(1) In general.
Use as a member of the general public (general public use) is not private business use. Use of financed property by nongovernmental persons in their trades or businesses is treated as general public use only if the property is intended to be available and in fact is reasonably available for use on the same basis by natural persons not engaged in a trade or business.
(2) Use on the same basis.
In general, use under an arrangement that conveys priority rights or other preferential benefits is not use on the same basis as the general public. Arrangements providing for use that is available to the general public at no charge or on the basis of rates that are generally applicable and uniformly applied do not convey priority rights or other preferential benefits. For this purpose, rates may be treated as generally applicable and uniformly applied even if --
(i) Different rates apply to different classes of users, such as volume purchasers, if the differences in rates are customary and reasonable; or
(ii) A specially negotiated rate arrangement is entered into, but only if the user is prohibited by federal law from paying the generally applicable rates, and the rates established are as comparable as reasonably possible to the generally applicable rates.
(3) Long-term arrangements not treated as general public use.
An arrangement is not treated as general public use if the term of the use under the arrangement, including all renewal options, is greater than 180 days. For this purpose, a right of first refusal to renew use under the arrangement is not treated as a renewal option if --
(i) The compensation for the use under the arrangement is redetermined at generally applicable, fair market value rates that are in effect at the time of renewal; and
(ii) The use of the financed property under the same or similar arrangements is predominantly by natural persons who are not engaged in a trade or business.
(4) Relation to other use.
Use of financed property by the general public does not prevent the proceeds from being used for a private business use because of other use under this section.