AGRICULTURAL TAX INCENTIVES AND CREDITS
(Page last updated February 10, 2010)
 
Disclaimer:  Regardless of what you read here or anywhere else, it is essential that you consult with a knowledgeable CPA who is specifically versed with the applicable tax laws to verify what incentives will apply directly to your project and/or farm.  Creative Solar USA is not responsible for any use or mis-use of the information provided below.  Creative Solar USA, Inc. disclaims all warranties, express or implied, with regard to the following, which is provided for informational purposes only.
 
 
FEDERAL
 
Agricultural entities may apply for the federal grant program. Up to 30% of a qualified solar electric, solar thermal or wind project may be received from this grant.  (For geothermal, the grant may be up to 10%.)
 
While commercial entities may apply for either the tax credit or the grant, it is unclear if the same applies for agricultural entities.  Until you speak with your CPA, you should count on this incentive as a grant, only.
 
Also, this incentive has no cap.
 
 
FEDERAL REAP GRANT
 
This grant is from the USDA and is not to be confused with the federal tax grant referenced above.  With the USDA REAP (Renewable Energy for America Program), applicable sectors may received 25% of the project cost through this grant.
 
Furthermore, there's a REAP Loan program which may be utilized in conjunction of the grant.  However, the combination of the loan program with the grant may not exceed more than 75% of the project's cost.
 
Lastly, eligibility varies and is based initially on the project location.  Contact your USDA office to find out if your address qualifies for either the grant and/or the loan program.
 
Applicable sectors include small business, schools, local government, state government, rural electric cooperative, agricultural and public power entities.
 
 
GEORGIA
 
This tax credit became effective July 1, 2008 (HB 670) and runs through 12/31/2012.  The renewable energy credit is 35% of your total installation costs.  The maximum credit for PV and wind is $500,000.  For solar hot water and geothermal, the maximum credit is $100,000.
 
As of April 2009, the state enacted a tax rebate program. This program is inclusive of agricultural entities who have installed qualifying renewable energy systems within the relevant tax year.  Under this rebate program, solar hot water and geothermal pumps have a cap maximum of $100,000.  Solar electric and wind have a cap of $500,000.  An entity may only receive either the tax credit or the rebate; it may not receive both.
 
Keep in mind that there is a limited amount of funds available for these programs, and these programs run on a first-come, first-served basis.  Furthermore, the tax credit "competes" with residential and commercial applications for this incentive.  What is meant by this is all monies for residential, commercial and agriculture tax incentives come from the same fund.
 
Note: The state tax incentives discussed here apply for the state of Georgia only.  To see what incentives apply for your state, please visit the DSIRE web site and click on your home state to learn more.  [DSIRE = Database of State Incentives for Renewables & Efficiency] 
 
 
UTILITY COMPANY REBATES AND/OR LOAN PROGRAMS

While not all utility companies offer incentives to those who install renewable energy, many do and more companies are changing their policies to expand coverage to this arena.  
 
Scroll to the bottom of this page to see a short list of utility companies, or better yet, call your particular utility company and ask them directly what is available.  You might need to go beyond the customer service representative to a manager to get this information.  Keep asking!  If they don't have a program, ask them to consider instituting one.  You might be surprised what happens.