Renewable energy advocates have been calling for a change in the tax laws to allow renewable energy within the REIT structure. A REIT is allowed to pass profits directly through to investors. These profits are not subject to double-taxation like most corporate profits. Owning shares of a renewable REIT would be much like owning a slice of a wind or solar farm. This would open up the renewable energy investment opportunity to everyone, not just corporations and homeowners with with a roof suitable for solar.
The catch is that REITs are limited to certain types of real estate-based assets, and without a new ruling from the IRS, wind and solar farms are out, which is why renewable advocates have been calling for just such a ruling.
Could you explain in more detail please. ie what does REIT stand for ( I am new to solar energy) and I am reading all I can these acronyms may be common knowledge to most but again I am just starting. Could you explain what ” The catch is” and why the farms are out in detail. This would aid the common citizen in lobbying his or her congressman.