In late 2022, prior to the influx of funds from the Inflation Reduction Act (IRA), we received a $447,000 REAP grant for one of our farm clients. While our Vermont digester projects usually pencil out without grant money, we vigorously pursue any available funding.
As it says in its name, the Rural Energy for America Grant (REAP) is targeted at projects that generate electricity or natural gas from waste on farms. Of the operating farm digesters in America, the majority have likely received the REAP. In 2023 and after, the REAP budget will be greatly expanded by the IRA, specifically for projects that mitigate greenhouse gases. As a result, we look forward to reporting REAP funding for many more of our farmer clients the second half of 2023.
Grant writing can be difficult and stressful – something farmers like to avoid. As a result our experienced team, surveys what is available and prepares applications that often succeed. In the past we have also acquired VAPG (Value Added Producer Grant) and VCLF (Vermont Community Loan Fund) grants.
This specific farm will also benefit from the IRA’s Investment Tax Credit. It is a 30%-40% dollar for dollar tax reduction that can be taken off their taxes now and/or a number of years in the future. At this particular farm, the tax credit may amount to more than the REAP grant.