Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 143

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 143
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 the Service. Any amount
paid as backup withholding will be creditable against the U.S. holder’s income tax liability. Backup withholding is not an additional
tax. Any amounts withheld under the backup withholding rules may be refunded or credited against the U.S. holder’s U.S. federal
income tax liability if certain required information is timely furnished to the Service. 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. In addition, the applicable withholding agent may be required to withhold a portion of distributions to any U.S.
holders who fail to certify their U.S. status.

<div align='center'>47</div>

Taxation of Non-U.S. Holders

The term “non-U.S. holder” means
a beneficial owner of our shares of capital stock that is not a U.S. holder or a partnership (or an entity or arrangement treated as
a partnership for U.S. federal income tax purposes). The rules governing U.S. federal income taxation of nonresident alien individuals,
foreign corporations, foreign partnerships and other foreign holders are complex. This section is only a summary of such rules. We urge non-U.S. holders to consult their tax advisors to determine the impact of U.S. federal, state and local income tax laws on ownership of our shares of capital stock, including any reporting requirements.

A non-U.S. holder that receives a distribution
from us that is not attributable to gain from our sale or exchange of “United States real property interests,” as defined
below, and that we do not designate as a capital gain dividend or retained capital gain will recognize ordinary income to the extent
that we pay the distribution out of our current or accumulated earnings and profits. A withholding tax equal to 30% of the gross amount
of the distribution ordinarily will apply unless an applicable tax treaty reduces or eliminates the tax. If a distribution is treated
as effectively connected with the non-U.S. holder’s conduct of a U.S. trade or business, the distribution will not incur the 30%
withholding tax, but the non-U.S. holder generally will be subject to U.S. federal income tax on the distribution at graduated rates,
in the same manner as U.S. holders are taxed on distributions and also may be subject to the 30% branch profits tax in the case of a
corporate non-U.S. holder. In general, non-U.S. holders will not be considered