IRS PLR: REIT’s Right to Receive Brownfield Credits as an Asset Under GAAP is a Receivable, Income Attributable to Receipt or Accrual of Credits is Qualifying Income (IRC §856)

A real estate investment trust’s (REIT) right to receive brownfield redevelopment tax credits, to the extent the right is an asset under GAAP, is a receivable for purposes of I.R.C. §856(c)(5)(J)(ii), the IRS ruled. The IRS noted that the income attributable to the receipt or accrual of the credits is considered qualifying income and that Taxpayer expects substantially all of the income generated by the site to be qualifying income. Under state law, the excess brownfield credits is treated as an overpayment of tax and Taxpayer will elect to receive a refund of the overpayment, the IRS stated. Taxpayer represented ...