USDA Reap Grant
What it is…
The USDA REAP (Rural Energy for America Program) grant is a financial assistance program offered by the United States Department of Agriculture (USDA) to support renewable energy and energy efficiency projects in rural areas. Here's a small explanation of how the USDA REAP grant works:
Eligibility: The REAP grant is available to agricultural producers and small businesses located in eligible rural areas. These areas are typically defined as towns or cities with populations of 50,000 or less.
Project: This includes the installation of renewable energy systems such as solar panels, wind turbines, biomass energy systems, geothermal systems, and hydropower systems. These projects aim to generate clean and sustainable energy for on-site use or to be sold back to the grid.
Grant Amount: The grant provides a financial contribution that is based on a percentage of the total project costs. The exact percentage varies depending on the project type and the size of the business or agricultural operation. The grant can cover 25% to 50% of the total project costs.
Application Process: Interested applicants must submit a comprehensive grant application to the USDA. The application typically requires information about the project, including its scope, cost estimates, expected energy savings or generation, and the financial need for assistance. The USDA reviews the applications and selects recipients based on eligibility and project merit. If your consulting with D4, we take care of the application process.
Financial Support: The grant provides a contribution to help offset the costs of renewable energy or energy efficiency projects, making them more affordable and economically viable.
Who can apply?
Rural Small Business’s
If you file a 1065 or 1120, you will be applying as a rural small business.
The rules for qualifying are similar to those of farms: the majority of electricity consumed on the property must be for business purposes only, and the applicant can’t owe any back taxes.
Does your business operate in a rural area? Use this link to see
https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Agricultural Producers
If you use Schedule F, you will be filing as an agricultural producer.
To qualify, the majority of your income (51%) must come from the farm.
Additionally, the majority of the electricity you use (51%) must be consumed by farm operations.
Does your business operate in a rural area? Use this link to see
https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do