Farm/Ranch Business

 

Under the Inflation Reduction Act, several major programs can link together to provide an extraordinary opportunity for return on investment in renewable energy while reducing your energy bill.

  • There is a 30% Investment Tax Credit (ITC) on the total project cost. This tax credit extends until 2032 and is retroactive to any projects installed during 2022.
    • An additional 10% bonus credits apply to products meeting “domestic content” guidelines. Bergey wind turbines, manufactured in Norman, Oklahoma, USA, are therefore qualified for a full 40% tax credit.
    • An additional 10% is available if your project is in a “brownfield” location, or a community with a recent coal plant or mine closure.
    • And additional 10% bonus credits are available if your project is in a designated “low-income community”.
  • The U.S. Department of Agriculture offers a REAP (Rural Energy for America Program) Grant. This grant will pay up to 40% of the total project cost directly to you. The balance of the project cost would be subject to the above Investment Tax Credit.
  • An investment in renewable energy would be considered an investment in capital operating equipment, and subject to depreciation under IRS Rule 179.

 

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