Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 88

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 88
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.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 to be engaged in a U.S. trade or business solely as a
result of their ownership of our shares of capital stock. It is expected that the applicable withholding agent will withhold U.S. income
tax at the rate of 30% on the gross amount of any distribution that we do not designate as a capital gain distribution or retained capital
gain and is paid to a non-U.S. holder unless either:

| · | a lower treaty rate applies and                                                                                                
 the non-U.S. holder files with the applicable withholding agent an IRS Form W-8BEN or IRS Form W-8BEN-E evidencing eligibility 
 for that reduced rate, or                                                                                                      |

| · | the non-U.S. holder files with the                                                                              
 applicable withholding agent an IRS Form W-8ECI claiming that the distribution is effectively connected income. |

Capital gain dividends received or deemed received
by a non-U.S. holder from us that are not attributable to gain from our sale or exchange of “United States