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Paige Anderson, partner at Vinson & Elkins, participated in a video interview during Nareit’s REITwise: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Fla.

Anderson discussed the challenges facing REITs in incorporating electric vehicle charging stations, noting the evolving nature of tax laws and the struggle for alignment with existing guidelines.

“In the past two years, we’ve seen significant progress, but the ambiguity remains,” she said. “The dilemma REITs face is in categorizing EV charging stations, whether as parking services or utilities, given the stark differences in IRS guidance. Being conservative may hinder potential growth.”

Regarding solar energy and transferable tax credits, Anderson underscored the IRS’s stance on prohibited transactions tax. She pointed out though the absence of clarity on earnings and profits, especially concerning sales through operating partnerships.

“The lack of resolution poses challenges, particularly in determining tax-exempt income and its impact on E&P,” Anderson noted, emphasizing the need for IRS intervention to provide clarity and streamline tax implications for REITs.