If the property is offered for sale or lease within 1 year of installation, which statement is correct?

• A. The exemption applies only if sold to a relative
• B. The exemption still applies
• C. The exemption does not apply
• D. The exemption applies only if the sale occurs after exactly 1 year

Answer: (C)

Timing of exemption eligibility hinges on how soon after installation the property is offered for sale or lease. The rule sets a one-year window, and if the property is put on the market within that first year, the exemption does not apply. The idea is to prevent using the exemption when the system isn’t retained by the current owner for a meaningful period. If the sale or lease occurs after more than one year, the exemption may apply, depending on the specific provisions. The other statements don’t fit because the exemption isn’t limited to transfers to relatives, isn’t automatically granted within the window, and isn’t tied to a sale occurring exactly after one year.