Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 93

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 93
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 backup withholding.

Backup withholding is not an additional tax.
Any amounts withheld under the backup withholding rules may be refunded or credited against the non-U.S. holder’s U.S. federal
income tax liability if certain required information is timely furnished to the Service. Non-U.S. holders are urged to consult their
own tax advisors regarding application of backup withholding to them and the availability of, and procedure for obtaining an exemption
from, backup withholding.

Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act, or FATCA,
imposes a U.S. federal withholding tax on certain types of payments made to “foreign financial institutions” and certain
other non-U.S. entities unless certain due diligence, reporting, withholding, and certification obligation requirements are satisfied.
FATCA generally imposes a U.S. federal withholding tax at a rate of 30% on dividends on, and gross proceeds from the sale or other disposition
of, our stock if paid to a foreign entity unless either (i) the foreign entity is a “foreign financial institution”
that undertakes certain due diligence, reporting, withholding, and certification obligations, or in the case of a foreign financial institution
that is a resident in a jurisdiction that has entered into an intergovernmental agreement to implement FATCA, the entity complies with
the diligence and reporting requirements of such agreement, (ii) the foreign entity is not a “foreign financial institution”
and identifies certain of its U.S. investors, or (iii) the foreign entity otherwise is excepted under FATCA. If we determine withholding
is appropriate in respect of our capital stock, we may withhold tax at the applicable statutory rate, and we will not pay any additional
amounts in respect of such withholding. Under recently released proposed Treasury Regulations, gross proceeds from a sale or other disposition
of our capital stock are not subject to FATCA withholding. In the preamble to these proposed Treasury Regulations, the Internal
Revenue Service has stated that taxpayers may generally rely on the proposed Treasury Regulations until final Treasury Regulations are
issued.

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If withholding is required under FATCA on a payment,
holders of our capital stock that otherwise would not be subject to withholding (or that otherwise would be entitled to a reduced rate
of withholding) generally will be required to seek a refund or credit from the Service to obtain the benefit of such exemption or reduction
(provided that such benefit is available). Stockholders should consult their own tax advisors regarding the effect of FATCA on an investment
in our capital