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INFLATION REDUCTION ACT<br />
The act allocates $2.2 billion to<br />
provide financial assistance to farmers,<br />
ranchers, and foresters who have experienced<br />
discrimination in USDA lending<br />
programs prior to Jan. 1, 2021. No borrower<br />
may receive more than $500,000 in<br />
assistance. The program is to be administered<br />
by one or more non-governmental<br />
programs, under the direction of USDA.<br />
This provision replaces the embattled<br />
ARPA provision providing loan payments<br />
to socially disadvantaged farmers.<br />
FORESTRY<br />
The act provides $5 billion in funding<br />
to the USDA for the national forest<br />
system, including funding for forest<br />
restoration and wildfire prevention, as<br />
well as grants to owners of state or private<br />
forests for climate mitigation, forest<br />
resilience, and related activities.<br />
CLEAN ENERGY AND<br />
REDUCING CARBON<br />
The act extends and enhances production<br />
tax credits for electricity produced<br />
from certain renewable resources, including<br />
facilities producing electricity from<br />
wind, geothermal, and solar. These credits<br />
expired at the end of 2021, but will<br />
now generally apply to projects placed<br />
into service before Jan. 1, 2025.<br />
The production tax credit is now<br />
tiered. The basic credit amount is 1.5<br />
cents per kilowatt hour. Taxpayers that<br />
do not pay prevailing wages and ensure<br />
that qualified apprentices complete a<br />
certain amount of the work, however,<br />
will receive only 0.3 cents per kilowatt<br />
hour. Taxpayers can boost credit amounts<br />
by 10% by sourcing their steel, iron, or<br />
manufactured-product components from<br />
U.S. manufacturers or by locating in a<br />
community with significant employment<br />
in the fossil fuel industry or which have<br />
experienced the closure of a coal mine or<br />
coal-fired plant.<br />
Energy Property Investment<br />
Tax Credit<br />
The act extends and enhances the investment<br />
tax credit for wind, geothermal,<br />
solar, and energy storage projects through<br />
2024. Geothermal is extended through<br />
2034. Taxpayers that meet prevailing<br />
wage and apprenticeship requirements<br />
are eligible for the full credit of 30%. The<br />
credit for those who do not meet wage requirements<br />
drops to 6%. A bonus applies<br />
for taxpayers who buy American components<br />
or locate in an energy community.<br />
For 2023 and 2024, qualified solar or<br />
wind facilities located in low-income<br />
communities or on Indian land will<br />
qualify for an additional 10% bonus. The<br />
bonus jumps to 20% if the project is a<br />
low-income residential building project or<br />
a low-income economic benefit project.<br />
Clean Fuels<br />
The act implements credits for clean<br />
fuels. Several of these credits are extensions<br />
of existing credits, such as incentives<br />
for biodiesel, renewable diesel, and<br />
alternative fuels, as well as second-generation<br />
biofuel incentives. It also creates<br />
two new fuels credits: one for sustainable<br />
aviation fuel and one for the production<br />
of clean hydrogen.<br />
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