Understanding the REAP GRANT
Salina Solar Co is your trusted authority for solar installations in Kansas. We have extensive knowledge about the Rural Energy for America Program (REAP), a grant launched by the USDA in 2008 to support rural businesses and agricultural producers.
The REAP grant covers 50% of the total project costs for implementing solar energy systems. Eligible entities include small businesses located in communities with less than 50,000 residents and agricultural producers who generate at least half of their gross income from their operations.
Benefit from the Federal Tax Credit for Solar
The Federal Business Energy Investment Tax Credit, or ITC, gives a tax credit amounting up to 30% of the project cost. This credit can be sold or rolled over to future years if the tax liability doesn’t exist the year the solar is placed in service.
The ITC can be stacked with the REAP grant, providing even more financial incentives.
Make the Most Out of Bonus Depreciation
Solar energy projects have additional benefits in the form of depreciation savings. Half of the value of the federal tax credit can be depreciated, despite it not being a net cost.
Moreover, bonus depreciation allows clients to fully depreciate 80% of the solar costs in year one and the remaining 20% over the next 5 years, even though the system lifespan exceeds 40 years.
How Salina Solar Co Can Help
At Salina Solar Co, we make sure that our clients maximize their benefits from the REAP grant and other incentives. We have a deep understanding of the application process and know how to avoid potential pitfalls.
Our goal is to help Kansas businesses and agricultural producers increase their energy independence, reduce energy costs, and contribute to a cleaner environment.
Key Takeaways
Please consult your tax professional regarding any tax issues.
