The biggest open question in my article Solar REITs: A Better Way to Invest in Solar was, when will we have a ruling from the Internal Revenue Service (IRS)?

In particular,

• Will solar photovoltaics (PV) be considered real property for purposes of Real Estate Investment Trust (REIT) ownership?
• Will revenue from power purchase agreements (PPAs) with utilities be considered rents?

These are both important, because in order to qualify for their special tax status, REITs must receive 75% of its gross income from IRS-defined “rents” on “real property.”  The IRS has substantial leeway to determine what qualifies as both “rent” ans as “real property,” hence the need for a ruling to clarify matters.

via IRS to Rule on Status of Solar PV Owned by REITs – Forbes.