Shane Shelley, partner at Morrison Foerster, sat down for a video interview during Nareit’s REITwise: 2025 Law, Accounting & Finance Conference in San Antonio on March 25-27.
Shelley explored the evolving relationship between REITs and renewable energy assets, particularly solar installations. He also unpacked a recent IRS private letter ruling and addressed challenges REITs face with joint venture structures.
Shelley confirmed that the IRS ruling, which allowed a REIT to maintain its status despite having no income or assets in its first year, resolved concerns that had occasionally tripped up clients.
Turning to renewable energy, Shelley noted the growing trend of integrating solar panels and EV charging stations into new developments. “Renewable energy is everywhere,” he said, explaining that solar can be structured to qualify as a real estate asset and generate qualifying income. However, he warned of complications such as state-level net metering rules and credit eligibility under the Inflation Reduction Act for projects exceeding one megawatt.