Inflation Reduction Act
For Farmers and Agricultural Producers
Grants, Loans and Technical Assistance
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Agricultural Conservation Investments
Description: An increase in funding for a range of existing agricultural conservation programs
Amount:
$8.5 billion for the Environmental Quality Incentives Program to provide farmers and ranchers with grants to implement environmentally beneficial conservation practices
$3.25 billion for the Conservation Stewardship Program to provide farmers and ranchers with grants to maintain and improve existing conservation practices
$1.4 billion for the Agriculture Conservation Easement Program to purchase easements to protect, restore and enhance wetlands and working agricultural land
$4.95 billion for the Regional Conservation Partnership Program to provide grants to partners to deliver conservation assistance to landowners and producers to restore and improve soil, water and wildlife on a regional or watershed scale
Eligible entities: Community based nonprofit OR a partnership between a community based non-profit and a local government or institution of higher education
Funding Source: The U.S Department of Agriculture (USDA)
Resources:
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Conservation Technical Assistance Program
Description: Funding for the Natural Resources Conservation Service to provide technical assistance to farmers and ranchers
Amount: $1 billion
Funding Source: The U.S Department of Agriculture (USDA)
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Competitive Grants for Non-Federal Forest Landowners
Description: Provides funding to US Department of Agriculture to support:
A grants program under the Cooperative Forestry Assistance Act of 1978 to support underserved landowners with climate mitigation or forest resilience
The wood innovation grant program
Amount: $550 million
Funding Source: The U.S Department of Agriculture (USDA)
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Rural Energy for America Program
Description: Grants and loans to support renewable energy systems and increasing the energy efficiency of buildings used for business and agriculture production in rural areas
Amount: $2.025 billion
Funding Source: The U.S Department of Agriculture (USDA)
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Biofuel Infrastructure and Agriculture Product Market Expansion
Description: Grants for infrastructure improvements to blend, store or distribute biofuels. This includes installing, retrofitting or upgrading dispensers for ethanol at retail stations as well as home heating oil distribution centers
Amount: $500 million
Funding Source: The U.S Department of Agriculture (USDA)
Debt Relief
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Assistance and Support for Underserved Farmers, Ranchers and Foresters
Description: Financial assistance for farmers, ranchers and landowners who have experienced discriminations in US Department of Agriculture’s farm lending programs
Amount: $2.2 billion (individual payments limited to $500,000)
Funding Source: The U.S Department of Agriculture (USDA)
Tax Credits and Incentives
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Biodiesel, Renewable Diesel, Alternative Fuels, Alternative Fuels Mixture, and Second Generation Fuels Credit
Description: The IRA extends these existing credits through 2024. Beginning in 2025, these credits will transition to the Clean Fuel Production Credit.
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§45Z Clean Fuel Production Credit
Description: A credit for domestic clean fuel production, starting in 2025
Amount: Up to $1.00 per gallon of non-aviation fuel and up to $1.75 per gallon of aviation fuel
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§48 Energy Investment Tax Credit (ITC)
Description: A credit for renewable energy property like solar, wind, hydropower, and battery storage
Amount: 30% tax credit
10% bonus credit for solar and wind facilities located in low income communities
20% bonus credit for solar and wind facilities that are part of a qualified low-income residential building project
Resources:
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§45 Renewable Electricity Production Tax Credit (PTC)
Description: A credit for the production of renewable energy
Amount: Up to 1.5 cents per kilowatt-hour of energy produced
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§45W Qualified Commercial Clean Vehicles
Description: A tax credit for qualified commercial clean vehicles. It is available to business owners who buy an electric vehicle or electric “mobile machinery,” including for construction, manufacturing, processing, farming, mining, drilling or timbering
Amount: 30% tax credit up to $7,500 for vehicles weighing less than 14,000 pounds, and up to $40,000 for vehicles weighing more than 14,000 pounds
Resources:
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§30C Alternative Fuel Refueling Property Credit
Description: A tax credit for electric vehicle charging infrastructure in low income or rural census tracts
Amount: 30% tax credit up to $100,000 per station for commercial property and up to $1,000 per station for residential property
Resources:
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§45Q Carbon Oxide Sequestration Credit*
Description: A credit for the deployment of carbon capture, utilization and storage
Amount: Up to $85 per ton of carbon dioxide permanently stored and up to $60 per ton of carbon dioxide used for enhanced oil recover or other industrial uses of carbon dioxide
Resources:
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§48E Clean Electricity Investment Credit
Description: Technology-neutral tax credit for investment in facilities that generate clean electricity and qualified energy storage technologies.
Amount: 6% of qualified investment (basis); 30% if PWA requirements met
Resources:
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§45Y Clean Electricity Production Credit
Description: Provides a technology-neutral tax credit for production of clean electricity.
Amount: $0.03 cents/kW
Resources:
Key Resources
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For detailed insight into the two debt relief programs in the IRA for farmers, check out this guide from Farmers’ Legal Action Group
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Check out this overview of the major agricultural provisions included in the IRA, from Congressional Research Service
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Stay up to date with IRA news from the US Department of Agriculture
Please note, the Inflation Reduction Act is new and information is constantly evolving. This page will be continuously updated as more information is released.