Solar Costs to Fall as REITs Emerge as Source of Funding

21 Jan. 2013 by

BLOOMBERG -A San Francisco startup may win approval as soon as this month to become the first firm allowed to raise money for solar-power projects as a REIT, the financing vehicle used in $640 billion of U.S. property ventures.

Renewable Energy Trust Capital Inc., led by a former Moody’s Investors Service chief executive officer, has asked tax officials at the U.S. Internal Revenue Service to classify solar farms as the type of “real property” that may be included in real estate investment trusts, or REITs. A ruling is imminent, according to Kelly Kogan, an attorney with Chadbourne & Parke LLP, which advises financiers on REITs.


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