What is the USDA REAP Grant?

The USDA REAP Grant or the Rural Energy for America Program is designed to provide grant funding to help rural businesses and Agricultural Producers implement solar panels and renewable energy systems or make improvements to overall energy efficiency. The REAP grant can cover 50% of the cost installation of solar panels.

Click here to check property eligibilty

If you are one of these groups. To be eligible for a REAP Grant you must meet the following criteria.

• Be financially solvent
• Not be delinquent or have outstanding federal taxes
• Own the business
• Have no judgment, or debarment in order to be considered.

What is the federal solar tax credit?

The federal residential solar energy credit is a tax credit It can be claimed on your federal income taxes for a percentage of the cost of solar panels and a solar PV system you paid for.

The system installation must be completed during the tax year that it is claimed.

Am I eligible to claim the federal solar tax credit?

To be eligible for the solar panel tax credit if you must meet the following criteria:

• To be eligible for this your solar PV system was installed before December 31st 2024
• The solar PV system is located at a residence of yours in the United States
• .Either:
  • You must own the solar PV system (i.e., you purchased it with cash or through financing but you are not paying a solar company to purchase the electricity generated by the system or leasing the system).
• Or, you purchased an interest in an off-site community solar project
• If the electricity generated is credited against, and does not exceed, your home’s electricity consumption. Notes: the IRS issued a statement (see link above) allowing a particular taxpayer to claim a tax credit for purchasing an interest in an off-site community solar project. However, this document, known as a private letter ruling or PLR, may not be relied on as precedent by other taxpayers. Also, you would not qualify if you only purchase the electricity from a community solar project.
• The solar PV system is new or being used for the first time.

What is the bonus depreciation?

If your business uses MARCS depreciation, or the Modified Accelerated Cost Recovery System, to depreciate assets. You will have a 5-year cost recovery period for solar panels. Bonus depreciation will allows you to recognize 100% of the depreciation in the same tax year the system is installed. This depreciation benefit is decreasing yearly. So don’t wait.