Does the 50% USDA REAP Grant reduce my 30% Federal Solar Tax Credit?

No! Because the USDA REAP grant is treated as taxable business income under federal tax law, it does not reduce your eligible cost basis for the IRC Section 48E 30% Investment Tax Credit. You receive the 50% REAP grant PLUS the 30% tax credit on the full project cost.

What is the maximum USDA REAP grant amount for solar in 2026?

For Renewable Energy Systems (such as commercial solar and battery storage), the maximum USDA REAP grant is ,000,000 per project (up to 50% of total eligible project costs), with a minimum grant request of ,500.

🚜 Form RD 4280-1 + IRC Section 48E + 5-Yr MACRS Engine

Interactive USDA REAP Solar Grant & Tax Pro-Forma Calculator

See why agricultural producers (farms, ranches, poultry, dairy, orchards) and rural small businesses never pay full price for commercial solar. Stack the 50% USDA REAP Cash Grant + 30%–40% Federal ITC + 5-Year MACRS Depreciation to cover up to 85% of your total installation cost.

⚡ Load Real-World Commercial & Farm Pro-Forma Preset:

1. Configure Project & Tax Profile

Total Turnkey Solar / Battery Project Cost$240,000

$20,000 (Small Ag Well)$500,000 (Mid C&I)$1,000,000 (Large Industrial)

USDA REAP Applicant Classification (7 CFR 4280)

USDA REAP Grant Funding Tier

Federal Marginal Tax Bracket

State Corporate / Income Tax Rate (5%)

0% (TX/FL/WY)6% (Avg)12% (CA/NY/NJ)

Estimated Year-1 Utility Bill Offset ($/yr)$36,000 / yr

+10% Bonus Tax Credit Adder: Project uses US Domestic Content hardware OR sits in a DOE Energy Community (boosts Federal Section 48E ITC from 30% to 40%).

Official Commercial Capital Stack